Sri. Venkatbabu Srinivas, Bangalore V. Assistant Commissioner Of Income Tax, Circle-2(2)(1), Bangalore

ITA 285/BANG/2023

AI Insights

This case involves an appeal by Sri Venkatbabu Srinivas against the order of the NFAC for the assessment year 2017-18, which confirmed the additions made by the Assessing Officer (AO) regarding unexplained increases in unsecured loans and unexplained cash deposits during the demonetization period. The assessee had filed his return electronically, declaring an income which was scrutinized under the Computer Aided Scrutiny Selection (CASS). The AO made significant additions to the assessee's income due to lack of satisfactory explanation regarding the sources of these financial transactions. The NFAC upheld the AO's decision after multiple notices were issued to the assessee, who failed to comply or provide explanations. The ITAT, considering the assessee's unfamiliarity with the ITBA portal and the ex-parte nature of the NFAC's decision, decided to remit the case back to the NFAC for a fresh hearing.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 129350 (ITAT-BANGALORE)
• Duration Of Justice: 2 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-06-2023
• Appeal Filed By: Assessee
• Order Result: PartlyAllowed
• Bench Allotted: A
• Next Hearing Date: 30-05-2023
• Assessment Year: 2017-2018
• Appeal Filed On: 09-04-2023
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 68; 142(1); 143(2)

Judgement Text

ITA No.285/Bang/2023 Sri Venkatbabu Srinivas, Bangalore IN THE INCOME TAX APPELLATE TRIBUNAL “A’’ BENCH: BANGALORE BEFORE SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER AND SMT. BEENA PILLAI, JUDICIAL MEMBER ITA No.285/Bang/2023 Assessment Year: 2017-18 Sri Venkatbabu Srinivas No.17(Old No.927), Sri Ram Mandir Ward No.22, 18 th Main, 5 th Block Rajaji Nagar Bangalore 560 010 PAN NO : AZRPS9123J Vs. ACIT Circle-2(2)(1) Bangalore APPELLANT RESPONDENT Appellant by : Shri Rajeev C. Nulvi, A.R. Respondent by : Shri D.K. Mishra, D.R. Date of Hearing : 31.05.2023 Date of Pronouncement : 12.06.2023 O R D E R PER CHANDRA POOJARI, ACCOUNTANT MEMBER: This appeal by assessee is directed against order of NFAC for the assessment year 2017-18 dated 22.3.2023. 2. In this case, the assessee filed the return of income electronically on 31.3.2018 declaring income of Rs.54,40,190/-. The case was selected for scrutiny under CASS. A notice u/s 143(2) of the Income-tax Act,1961 ['the Act' for short] was issued on 14.8.2018. Later, a notice u/s 142(1) of the Act was issued on various dates. While framing the assessment, the AO observed that there was increase in unsecured loans from Rs.13,12,65,133/- to ITA No.285/Bang/2023 Sri Venkatbabu Srinivas, Bangalore Page 2 of 3 Rs.107,29,21,492/-. The assessee has not explained this properly before the AO. Hence, he made an addition of Rs.94,16,56,359/-. Similarly, the assessee has deposited cash during demonetization period into his bank account to the tune of Rs.1,80,88,500/-. The assessee has also not explained the source of this deposit. Hence, the AO has made an addition u/s 68 of the Act. The assessee went in appeal before NFAC who has given notices of hearing to the assessee and there was no compliance as follows: Sl.No. Notice issuing date Fixed for hearing Way of Service of Notice Result 1 23.12.2020 07.01.2021 By e-mail Not uploaded any written submission 2 13.02.2023 20.02.2023 By e-mail Not uploaded any written submission 3 06.03.2023 13.03.2023 By e-mail Not uploaded any written submission 4 16.03.2023 22.03.2023 By e-mail Not uploaded any written submission Hence, the NFAC confirmed the order of the AO. Against this assessee is in appeal before us. 2.1 Before us, the ld. A.R. submitted that the assessee is not conversant with ITBA Portal. Hence, assessee is not able to represent his case before NFAC and prayed that an opportunity may be given since the order was passed by the NFAC ex-parte. 3. We have heard the rival submissions and perused the materials available on record. In our opinion, it is appropriate to remit the issue to the file of NFAC to consider the issues on merit after giving an opportunity of hearing to the assessee. Accordingly, all the issues in dispute are remitted to the file of NFAC for fresh ITA No.285/Bang/2023 Sri Venkatbabu Srinivas, Bangalore Page 3 of 3 consideration. Since we have remitted the issue to the file of NFAC for fresh consideration, we will refrain from adjudicating various grounds raised by the assessee on merits. 4. In the result, the appeal of the assessee is partly allowed. Order pronounced in the open court on 12 th June, 2023 Sd/- (Beena Pillai) Judicial Member Sd/- (Chandra Poojari) Accountant Member Bangalore, Dated 12 th June, 2023. VG/SPS Copy to: 1. The Applicant 2. The Respondent 3. The CIT 4. The CIT(Judicial) 5. The DR, ITAT, Bangalore. 6. Guard file By order Asst. Registrar, ITAT, Bangalore.