Vinayak Janardan Dixit, Aurangabad V. Assistant Commissioner of Income-Tax, Circle -1, Aurangabad

ITA 202/PUN/2022

AI Insights

This case involves an appeal by Vinayak Janardan Dixit against the order of the Commissioner of Income Tax (Appeals), which confirmed an addition of Rs. 35,40,931 under section 68 read with section 115BBE of the Income Tax Act, 1961. The addition was made on account of unexplained cash deposits in the assessee's bank account. The primary contention of the assessee was the lack of proper opportunity to present his case during the appellate proceedings, as he had requested an adjournment which was not adequately addressed by the CIT(A). The Tribunal found merit in the assessee's argument regarding the procedural lapse and thus remanded the case for a fresh hearing.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 134305 (ITAT-PUNE)
• Duration Of Justice: 9 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-01-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 08-01-2023
• Assessment Year: 2017-2018
• Appeal Filed On: 06-04-2022
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: KRANT E. KHOBRAGADE
• Assessee Lawyers: NIKHIL PATAKH
• Keywords: Opportunity of being heard; Set aside
• Section: 68; 143(3)

Judgement Text

आयकर अपीलीय अिधकरण “बी” Ɋायपीठ पुणेमŐ। IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCHES “B” :: PUNE BEFORE SHRI S.S.GODARA, JUDICIAL MEMBER AND DR. DIPAK P. RIPOTE, ACCOUNTANT MEMBER आयकर अपील सं. / ITA No.202/PUN/2022 िनधाᭅरण वषᭅ / Assessment Year :2017-18 Vinayak Janardan Dixit, Flat No.3 A-2, Sara Garden Mukundwadi Chowk, Aurangabad – 431001. PAN: ABIPD 0157 E V s The Asst. CIT, Circle-1, Aurangabad. Appellant/ Assessee Respondent /Revenue Assessee by Shri Nikhil Patakh – AR Revenue by Smt. Krant E. Khobragade – DR Date of hearing 09/01/2023 Date of pronouncement 11/01/2023 आदेश/ ORDER PER DR. DIPAK P. RIPOTE, AM: This appeal filed by the Assessee is directed against the order of ld.Commissioner of Income Tax(Appeals)[NFAC], Delhi dated 24.09.2021 emanating from the order under section 143(3) of the I.T.Act, 1961 passed by ACIT, Circle-1 for the A.Y.2017-18. The Assessee has raised the following grounds of appeal: 1] The learned CIT(A) erred in dismissing the appeal of the assessee without giving proper opportunity of the hearing to the assessee. 2] The learned CIT(A) erred in dismissing the appeal of the assessee ex-parte without appreciating that the assessee had requested for an adjournment in respect of the notice issued dated 19.02.2021 and hence, there was no reason to dismiss the appeal of the assessee for non submission of details. ITA No.202/PUN/2022 Vinayak Janardhan Dixit [A] 2 3] The learned CIT(A) erred in confirming an addition of Rs.35,40,931/- u/s 68 r.w.s. 115BBE of the Act, on the ground that the assessee did not submit any reply in respect of the said addition. 4] The learned CIT(A) failed to appreciate that there was no reason to make any addition on account of cash deposit in bank account of Rs.35,40,931/- and accordingly, the addition made should be deleted. 5] The assessee submits that the cash deposited of Rs.35,40,931/- is out of his professional receipts which are duly offered to tax and therefore, the addition made u/s 68 r.w.s. 115BBE of Rs.35,40,931/- may kindly be deleted. 6] The Id. CIT(A) failed to appreciate that the assessee had offered Rs. 35,40,931/- as his professional income and hence, there was no reason to make a further addition of the said amount while computing the total income of the assessee. 7] Without prejudice to the above, the assessee submits that in case, the addition of Rs. 35,40,931/- is sustained u/s. 68 r.w.s. 115BBE, the said amount should be accordingly, reduced from his professional receipts and the tax thereon should be reworked accordingly. The appellant craves leave to add, alter, amend or delete any of the above grounds of appeal. 2. The ld.Authorised Representative(ld.AR) submitted that only one opportunity of hearing was given vide notice dated 19.02.2021. The assessee had filed adjournment petition in response to the said notice dated 19.02.2021. However, the ld.CIT(A) passed the order without giving any further opportunity. 3. The ld.Departmental Representative(ld.DR) for the Revenue relied on the orders of the Lower Authorities. ITA No.202/PUN/2022 Vinayak Janardhan Dixit [A] 3 4. We have heard both the parties and perused the records. Assessee’s Ground No.1 and 2 is regarding not giving sufficient opportunity. It is observed that as per the ld.CIT(A)’s order only one notice dated 19.02.2021 was issued. The ld.AR submitted that assessee had sought adjournment. However, the ld.CIT(A) has passed the order confirming the addition made by the AO of Rs.35,40,931/- under section 68 of the Act as unexplained cash deposits. Since it is a fact that assessee had asked for adjournment, the ld.CIT(A) has not rejected the adjournment request. However, the ld.CIT(A) passed the order without giving any further opportunity. Therefore, in the interest of justice, the order of ld.CIT(A) is set-aside to ld.CIT(A) for denovo adjudication. The ld.CIT(A) shall give opportunity of being heard to the assessee. Accordingly, Ground No. 1 and 2 of appeal raised by the assessee are allowed for statistical purpose. Since, we have set aside to the CIT(A), we have not adjudicated Ground No.3 to 7, which are on merits of the addition. 5. In the result, appeal of the assessee is allowed for statistical purpose. Order pronounced in the open Court on 11 th January, 2023. Sd/- Sd/- (S.S.GODARA) (DR. DIPAK P. RIPOTE) JUDICIAL MEMBER ACCOUNTANT MEMBER पुणे / Pune; ᳰदनांक / Dated : 11 th Jan, 2023/ SGR* ITA No.202/PUN/2022 Vinayak Janardhan Dixit [A] 4 आदेशकᳱᮧितिलिपअᮕेिषत / Copy of the Order forwarded to : 1. अपीलाथᱮ / The Appellant. 2. ᮧ᭜यथᱮ / The Respondent. 3. The CIT(A), concerned. 4. The Pr. CIT, concerned. 5. िवभागीयᮧितिनिध, आयकर अपीलीय अिधकरण, “बी” बᱶच, पुणे / DR, ITAT, “B” Bench, Pune. 6. गाडᭅफ़ाइल / Guard File. आदेशानुसार / BY ORDER, // TRUE COPY // Senior Private Secretary आयकर अपीलीय अिधकरण, पुणे/ITAT, Pune.