SENGOTTAIYAN KRISHNAMOORTHI, NAMAKKAL V. ITO, WARD-3, NAMAKKAL

ITA 1107/CHNY/2022

AI Insights

This case involves an appeal by Shri Sengottaiyan Krishnamoorthi against the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, which was relevant to the assessment year 2010-11. The Assessing Officer had noticed unexplained cash deposits amounting to \\u20b912,81,600 in the assessee's bank account during the financial year 2009-10, for which no return of income was filed. Consequently, the case was reopened under section 147 of the Income Tax Act, 1961, and a best judgement assessment was made under section 144 r.w.s. 147, treating the deposits as unexplained credits under section 69A of the Act. The CIT(A) dismissed the appeal due to non-response from the assessee. The Tribunal, after hearing the Departmental Representative and perusing the records, decided to remit the matter back to the Assessing Officer, providing the assessee another opportunity to present his case.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 134970 (ITAT-CHENNAI)
• Duration Of Justice: 1 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-01-2023
• Appeal Filed By: Assessee
• Order Result: PartlyAllowed
• Bench Allotted: B
• Next Hearing Date: 22-01-2023
• Assessment Year: 2010-2011
• Appeal Filed On: 22-12-2022
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Unexplained cash credit
• Section: 147; 148; 144; 142(1); 69A

Judgement Text

आयकर अपीलीय अिधकरण, ‘बी’ Ɋायपीठ, चेɄई IN THE INCOME-TAX APPELLATE TRIBUNAL ‘B’ BENCH, CHENNAI ŵी वी. दुगाŊ राव, Ɋाियक सद˟ एवं ŵी मनोज कु मार अŤवाल, लेखा सद˟ के समƗ । Before Shri V. Durga Rao, Judicial Member & Shri Manoj Kumar Aggarwal, Accountant Member आयकर अपील सं./I.T.A. No.1107/Chny/2022 िनधाŊरण वषŊ/Assessment Year: 2010-11 Shri Sengottaiyan Krishnamoorthi, 3/225, West Valasu, P. Mettur PO, Mallur Via, Rasipuram Taluk, Namakkal District 636 203. [PAN:BIEPK5446H] Vs. The Income Tax Officer, Ward 3, Namakkal. (अपीलाथŎ/Appellant) (ŮȑथŎ/Respondent) अपीलाथŎ की ओर से / Appellant by : None ŮȑथŎ की ओर से/Respondent by : Shri D. Hema Bhupal, JCIT सुनवाई की तारीख/ Date of hearing : 23.01.2023 घोषणा की तारीख /Date of Pronouncement : 31.01.2023 आदेश /O R D E R PER V. DURGA RAO, JUDICIAL MEMBER: This appeal filed by the assessee is directed against the order of the ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi dated 10.11.2022 relevant to the assessment year 2010-11. 2. Brief facts of the case are that from the records available with the Department, the Assessing Officer has noticed that the assessee made I.T.A. No.1107/Chny/22 2 cash deposits of ₹.12,81,600/- into his saving bank account maintained with ICICI Bank during the financial year 2009-10, but, the assessee has not filed his return of income for this assessment year. The veracity of the sources through which the said deposits were made could not be verifiable in the absence of any return of income. Since there was reasons to believe that income chargeable to tax had escaped assessment, the case of the assessee was reopened under section 147 of the Income Tax Act, 1961 [“Act” in short] and notice under section 148 of the Act has been issued on 31.03.2017 and served on the assessee by post on 04.04.2017. However, there was no response from assessee. Notice under section 142(1) of the Act dated 07.07.2017 & 04.08.2017 were issued requesting the assessee to file the return of income and explanation for cash deposits made in the above said bank with evidences/supporting documents. However, there was no response from the assessee. Another notice under section 142(1) r.w.s. 129 of the Act dated 26.10.2018 was also issued. Further, notice under section 142(1) of the Act dated 09.11.2018 intimating the assessee about the proposed action to complete the assessment proceedings under section 144 of the Act was also issued. Since the assessee has not responded to various notices issued, after I.T.A. No.1107/Chny/22 3 verification of Bank account details, the Assessing Officer proceeded to conclude the best judgement assessment under section 144 r.w.s. 147 of the Act dated 22.11.2018 and the entire credits including cash deposits made into the assessee’s bank account of ₹.13,19,600/- were treated as unexplained credit under section 69A of the Act and brought to tax. On appeal, the ld. CIT(A) dismissed the appeal filed by the assessee since the assessee has not responded to various notices issued by the ld. CIT(A) or filed any supporting documents. 3. On being aggrieved, the assessee is in appeal before the Tribunal. None appeared on behalf of the assessee despite notice of hearing has been issued to the assessee. Hence, we proceed to decide the appeal on merits after hearing the ld. DR. 4. We have heard the ld. DR, perused the materials available on record and gone through the orders of authorities below. The Assessing Officer has completed the assessment under section 144 r.w.s. 147 of the Act and the ld. CIT(A) (NFAC) has also completed exparte appellate order despite various notices issued by the authorities below. In this case, against the notice under section 148 of the Act, there was no response from the assessee. Further, the I.T.A. No.1107/Chny/22 4 assessee has also not responded to any of the notices issued by the Assessing Officer. We have gone through the best judgement assessment order passed under section 144 r.w.s. 147 of the Act and also appellate order passed by the ld. CIT(A). We are of the considered opinion that the assessee shall be afforded one more opportunity of being heard to substantiate his case to meet the ends of natural justice. Accordingly, we remit the matter back to the file of the Assessing Officer to decide the issues afresh after considering the details as may be filed by the assessee. The assessee is also directed to furnish complete details before the Assessing Officer without fail. 5. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on 31 st January, 2023 at Chennai. Sd/- Sd/- (MANOJ KUMAR AGGARWAL) ACCOUNTANT MEMBER (V. DURGA RAO) JUDICIAL MEMBER Chennai, Dated, 31.01.2023 Vm/- I.T.A. No.1107/Chny/22 5 आदेश की Ůितिलिप अŤेिषत/Copy to: 1. अपीलाथŎ/Appellant, 2.ŮȑथŎ/ Respondent, 3. आयकर आयुƅ (अपील)/CIT(A), 4. आयकर आयुƅ/CIT, 5. िवभागीय Ůितिनिध/DR & 6. गाडŊ फाईल/GF.