Shri Rakesh Madhubhai Kanpariya, Prempara, Dhari, Amreli-365640 V. The ITO, Ward-3 (1) (4), Amreli, Amreli

ITA 255/RJT/2022

AI Insights

The case involves Shri Rakesh Madhubhai Kanpariya, who appealed against the order of the National Faceless Appeal Centre (NFAC), which confirmed the addition of Rs. 10,49,500 to his income for the Assessment Year 2017-18. This amount represented substantial cash deposits made in his bank account during the demonetization period in India. The Income Tax Officer (ITO) had initially made this addition under Section 144 of the Income Tax Act due to the unexplained source of the deposits. The appellant did not file a return of income for the relevant assessment year nor provided any satisfactory explanation or evidence during the appellate proceedings to substantiate the source of these deposits. Consequently, both the CIT(A) and the Tribunal upheld the addition, dismissing the appeal due to lack of evidence and non-cooperation from the appellant.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 299793 (ITAT-RAJKOT)
• Duration Of Justice: 5 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-04-2023
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 17-04-2023
• Assessment Year: 2017-2018
• Appeal Filed On: 01-11-2022
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Source of fund
• Section: 144; 139; 142(1); 250; 69A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL “RAJKOT” BENCH, RAJKOT [Conducted through E-Court at Ahmedabad] BEFORE SHRI WASEEM AHMED, ACCOUNTANT MEMBER & Ms. MADHUMITA ROY, JUDICIAL MEMBER आयकर अपील सं./I. T. A. No. 255 /Rjt/202 2 ( नधा रण वष / A ss es sment Year : 2017-18) Sh r i R a k es h Ma dh ub h a i Ka np ar iy a Pr e m p a r a D h a r i P re m p ar a D hr ai , P r e mp a r a D h ar i D h ar i , A m re li – 3 6 56 40, G uj ar a t बनाम/ Vs . T h e I n co me T a x O f f ic er W ar d- 3( 1) ( 4 ) , R a j k ot- A m r el i थायी लेखा सं./जीआइआर सं./P A N/ G I R N o . : D A I P K 3 4 0 6 F (अपीलाथ /Appellant) . . ( यथ / Respondent) अपीलाथ ओर से /Appellant by : None यथ क ओर से / Respondent by : Shri K. L. Solanki, Sr.D.R. स ु नवाई क तार ख / D a t e o f H e a r i ng 18/04/2023 घोषणा क तार ख /D a t e o f P ro n o u nc e me n t 25/04/2023 O R D E R PER Ms. MADHUMITA ROY - JM: The instant appeal at the instance of the assessee is directed against the order dated 29.07.2022 passed under Section 250 of the Income Tax ITA No. 255/Rjt/2022 (Shri Rakesh Madhubhai Kanpariya vs. ITO) A. Y. 2017-18 - 2- Act, 1961 (hereinafter referred as to ‘the Act’) by the National Faceless Appeal Centre, Delhi (hereinafter referred to as ‘NFAC’), arising out of the order dated 05.12.2019 passed by the Learned ITO, Ward-3(1)(4), Rajkot under Section 144 of the Act for Assessment Year 2017-18. 2. No-one appeared on behalf of the assessee at the time of call, neither any adjournment has been sought for. 3. There is a delay of 36 days in preferring the appeal before us. In support of such condonation of delay, an application has also been filed by the appellant. In fact, the appellant was in search of Chartered Accountant for filing the appeal before us. As the plea taken in the said application seems to be genuine, the delay is condoned. 4. We have heard the Ld. DR and also perused the relevant materials available on record including the orders passed by the authorities below. Upon going through the records, it appears that the case relates to deposit of substantial cash in the bank account during demonetization period where no return has been filed by the assessee for such A.Y. 2017-18 during the period commencing from 9 th November, 2016 to 30 th December, 2016. The assessee deposited cash of Rs.10,49,500/- in the bank account. The assessee was issued with the notice dated 08.03.2018 under Section 142(1) of the Act to prepare a true and correct return of income for A.Y. 2017-18. The assessee failed to file the return of income under Section 139 of the Act on or before 31.12.2018 neither filed the return in response to the said ITA No. 255/Rjt/2022 (Shri Rakesh Madhubhai Kanpariya vs. ITO) A. Y. 2017-18 - 3- notice under Section 142(1) of the Act dated 08.03.2018 and therefore, the source of such cash deposit made in old currency remained unexplained. The Ld. AO ultimately issued notice under Section 131(1A) of the Act dated 08.07.2019 whereupon the assessee personally attended. As he has not filed the return of income for the relevant assessment year, he was directed to file the return of income for the year under consideration and to explain the sources of income. However, as no explanation was ultimately filed by the assessee in respect of the nature and source of cash deposit, the same remained unexplained money, under Section 69A of the Act addition to the tune of Rs.10,49,500/- was made by the Ld. AO. 5. Being aggrieved by and / or dissatisfied with the said order, the assessee filed an appeal before the First Appellate Authority and during the appellate proceeding, notices were served upon the assessee fixing the date for submission of assessee’s case. Out of such five occasions, no submissions were made by the assessee; in two occasions, adjournments were sought for. Having no other alternative, the Ld. CIT(A) proceeded to finalize the issue. As nothing was furnished to substantiate the claim of the assessee or to explain the genuineness of such deposit by furnishing cogent evidence on the part of the appellant, the addition made by the Ld. AO stood confirmed. Even before us, no submission has been filed, neither any adjournment has been sought for. In the absence of any assistance rendered by the assessee in support of his case sought to be made out in the appeal by way of the ground of appeal, we do not find any reason to interfere with the order passed by the authorities below which seems to be a reasoned one ITA No. 255/Rjt/2022 (Shri Rakesh Madhubhai Kanpariya vs. ITO) A. Y. 2017-18 - 4- and having no other alternative, we confirm the said impugned order of addition. 6. In the result, assessee’s appeal is dismissed. This Order pronounced on 25/04/2023 Sd/- Sd/- (WASEEM AHMED) (MADHUMITA ROY) ACCOUNTANT MEMBER JUDICIAL MEMBER Ahmedabad; Dated 25/04/2023 S. K. SINHA True Copy आदेश क त ल प अ े षत/Copy of the Order forwarded to : 1. अपीलाथ / The Appellant 2. यथ / The Respondent. 3. संबं%धत आयकर आय ु 'त / Concerned CIT 4. आयकर आय ु 'त(अपील) / The CIT(A)- 5. *वभागीय -त-न%ध, आयकर अपील य अ%धकरण, अहमदाबाद / DR, ITAT, Ahmedabad 6. गाड3 फाईल / Guard file. By order/आदेश से, D e p u t y / A s s t t . R e g i s t r a r I T A T , R a j k o t