PACKIAM ISSAC , TUTICORIN V. ITO , WARD - 2 , TUTICORIN

ITA 1113/CHNY/2022

AI Insights

The case involves appeals by the assessee, Packiam Issac, against the orders of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, which confirmed the additions made by the Assessing Officer under sections 143(3) read with section 147 and section 143(3) of the Income Tax Act for the Assessment Years 2013-14 and 2015-16. The additions were made due to unsubstantiated cash deposits totaling Rs. 118.74 Lacs and Rs. 109.40 Lacs respectively in the assessee's bank accounts. The tribunal, considering the principles of natural justice, decided to provide another opportunity to the assessee to substantiate the sources of these deposits, subject to the payment of a cost of Rs. 20,000.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 134234 (ITAT-CHENNAI)
• Duration Of Justice: 6 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-07-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 12-07-2023
• Assessment Year: 2013-2014
• Appeal Filed On: 27-12-2022
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Principle of natural justice
• Section: 143(3)

Judgement Text

आयकर अपीलीय अिधकरण “बी” ायपीठ चे ई म । IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, CHENNAI माननीय ी महावीर िसंह, उपा ! एवं माननीय ी मनोज कुमार अ&वाल ,लेखा सद) के सम!। BEFORE HON’BLE SHRI MAHAVIR SINGH, VP AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM आयकरअपील सं./ ITA No.1113/Chn y/2022 (िनधा*रण वष* / As sessment Year: 2013-14) & आयकरअपील सं./ ITA No.1114/Chn y/2022 (िनधा*रण वष* / As sessment Year: 2015-16) Packiam Issac 56/8, Polepettai Tuticorin-628 002. बनाम / V s . ITO Ward-2. Tuticorin. थायीलेखासं./जीआइआरसं./PAN/GIR No. A AJP I -24 73-C (अपीलाथ /Appellant) : ( थ / Respondent) अपीलाथ कीओरसे/ Appellant by : Shri S.Sridhar (Advocate)-Ld.AR थ कीओरसे/Respondent by : Shri D.Hema Bhupal (JCIT)- Ld. DR सुनवाईकीतारीख/Date of Hearing : 13-07-2023 घोषणाकीतारीख /Date of Pronouncement : 13-07-2023 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aforesaid appeals by assessee for Assessment Year (AY) 2013-14 & 2015-16 arise out of separate orders of learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] dated 25-11-2022 / 29-11-2022 in the matter of assessments framed by Ld. Assessing Officer [AO] u/s.143(3) r.w.s 147 / 143(3) of the Act on 28-12-2018 / 29-12-2017. The Ld. AR, at the outset, drawing 2 ITA No.1113 & 1114/Chny/2022 attention to the orders of lower authorities, pleaded for another opportunity to substantiate the claim. The same has been opposed by Ld. Sr. DR. Having heard rival submissions and upon perusal of case records, the appeals are disposed-off as under. 2. Upon perusal of assessment order for AY 2013-14, it could be seen that the assessee made cash deposits of Rs.118.74 Lacs in its bank accounts. Accordingly, the assessee was required to substantiate the sources of the same. As is evident from para-12 of the assessment order, the assessee failed to respond to various notices issued by Ld. AO on 11 occasions. Accordingly Ld. AO made addition of net cash deposit of Rs.92.19 Lacs. Similar assessment was framed for AY 2015- 16 wherein the assessee was saddled with additions of Rs.109.40 Lacs in similar fashion. 3. The position remained the same during appellate proceedings wherein the assessee could not furnish any evidence to substantiate the source of cash deposit though the assessee claimed that he was working as commission agent and collecting cash on behalf of others to pay their dues to the revenue authorities on their behalf. In the result, the assessment was confirmed for both the years. Aggrieved, the assessee is in further appeal before us. It is the submission of Ld. AR that the assessee is able to substantiate the claim by producing the persons who had rendered cash to the assessee. 4. We find that the assessee has failed to substantiate the sources of cash deposit. No material evidences could be filed before lower authorities which resulted into confirmation of impugned additions. However, keeping in view the principle of natural justice, we deem it fit to 3 ITA No.1113 & 1114/Chny/2022 provide another opportunity of hearing to the assessee. However, this concession would come at a cost of Rs.10,000/- per appeal. The total cost of Rs.20,000/- shall be deposited by the assessee by 31.08.2023 to ‘Tamil Nadu State Legal Services Authority’ at Hon’ble High Court of Madras. The proof of the same shall be furnished by the assessee to learned Assessing Officer who shall proceed to re-adjudicate the issue on merits and frame an assessment de novo for both the years. 3. Both the appeals stand allowed for statistical purposes. Order pronounced on 13 th July, 2023. Sd/- Sd/- (MAHAVIR SINGH) (MANOJ KUMAR AGGARWAL) उपा ! / VICE PRESIDENT लेखा सद) / ACCOUNTANT MEMBER चे3ई Chennai; िदनांक Dated : 13-07-2023 DS आदेशकीAितिलिपअ&ेिषत/Copy of the Order forwarded to : 1. अपीलाथ /Appellant 2. थ /Respondent 3. आयकरआयु