VELLANKI BALA BHASKAR RAO, ELURU V. INCOME TAX OFFICER, WARD-2, ELURU

ITA 293/VIZ/2023

• Counselvise Citation: [2024] 100 COUNSELVISE.COM (IT) 2901 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 4 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-04-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 15-04-2024
• Assessment Year: 2017-2018
• Appeal Filed On: 23-11-2023
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: APARNA VILLURI
• Keywords: Opportunity of being heard; Non compliance
• Section: 144; 234B

Judgement Text

आयकरअपीलीयअधिकरण, धिशाखापटणम पीठ, धिशाखापटणम IN THE INCOME TAX APPELLATE TRIBUNAL, VISAKHAPATNAM BENCH, VISAKHAPATNAM (through Hybrid Hearing) श्री द ु व्वूरु आर एल रेड्डी, न्याधयक सदस्य एिं श्री एस बालाकृ ष्णन, लेखा सदस्य के समक्ष BEFORE SHRI DUVVURU RL REDDY, HON’BLE JUDICIAL MEMBER & SHRI S BALAKRISHNAN, HON’BLE ACCOUNTANT MEMBER आयकर अपील सं./I.T.A.No.293/Viz/2023 (ननधधारण वर्ा / Assessment Year : 2017-18) Vellanki Bala Bhaskar Rao Flat No.A5, Harsha Palace Tikkanna Somayajulu Street Ashok Nagar, Eluru [PAN : ALOPB3230C] Vs. Income Tax Officer Ward-2 Eluru (अपीलार्थी/ Appellant) (प्रत्यर्थी/ Respondent) अपीलधथी की ओर से/ Appellant by : Shri M.Madhusudan, AR प्रत्यधथी की ओर से / Respondent by : Dr.Aparna Villuri, DR सुनवधई की तधरीख / Date of Hearing : 16.04.2024 घोर्णध की तधरीख/Date of Pronouncement : 19.04.2024 आदेश /O R D E R Per Shri Duvvuru RL Reddy, Judicial Member : This appeal is filed by the assessee against the order of Commissioner of Income Tax (Appeals) [CIT(A)], National Faceless Appeal Centre (NFAC), Delhi in ITBA/NFAC/S/250/2023- 24/1056682713(1) dated 30.09.2023, arising out of order passed u/s 144 of the Income Tax Act, 1961 (in short ‘Act’) dated 20.11.2019 for the Assessment Year (A.Y.) 2017-18. 2 I.T.A. No.293/Viz/2023, A.Y.2017-18 Vellanki Bala Bhaskar Rao, Eluru 2. Brief facts of the case are that the assessee is an individual, failed to file return of income for the A.Y.2017-18. Various notices were issued by the AO as per the provisions of the Act, but the assessee failed to furnish any reply before the AO during the assessment proceedings. Hence, the AO completed the assessment based on the material available on record and passed order u/s 144 of the Act dated 20.11.2019, assessing the income of the assessee at Rs.1,53,20,600/-, taxable u/s 115BBE of the Act at the rate of 60%. 3. On being aggrieved, the assessee preferred an appeal before the CIT(A) and dismissed the appeal filed by the assessee ex-parte due to non prosecution. 4. Aggrieved by the order of the Ld.CIT(A), the assessee preferred an appeal before the Tribunal by raising the following grounds of appeal : i. The order under Sec.250 dt.30.09.2023 passed by the Ld.CIT(A), NFAC, Delhi may be erroneous both in law and also on facts of the case. ii. Taking cognizance of the fact that there was non-compliance to the notices issued by the authorities from time to time, due to the circumstances beyond the control, arising out “communication gap” as recorded in the annexed statement of facts and such non compliance was not intentional, deliberate, a lenient view may kindly be extended and adverse inferences may not be drawn w.r.t. such technical flaw; 3 I.T.A. No.293/Viz/2023, A.Y.2017-18 Vellanki Bala Bhaskar Rao, Eluru iii. Also taking cognizance of the fact that the assessee maintained REGULAR CASH BOOK for holding control over the multiples financial transactions effected from time to time, it may kindly be noticed that the provisions of Sec.69A of the Act may not be applicable to the instant case; iv. Also considering the fact that all those financial transactions, comprising of “cash deposits” vis-a-vis other CREDITS (other than cash deposits) were effected through “KNOWN Sources only” as per the detailed analysis reflected in the annexed statement of Facts, it may kindly be noticed that the impugned addition of Rs.1,53,20,600/- may be DEVOID OF ANY MERIT and may not be sustainable in law. v. Also giving due weight to the fact that there is no independent business activity undertaken by the appellant and considering the overall factual and legal position recorded in the annexed statement of facts it may kindly be noticed that there is NO UNEXPLAINED income derived by the appellant warranting enforcement of Sec.69A of the Act and thereby the aforesaid addition may be VOID IN LAW. vi. In the context of non holding of any unexplained money within the meaning of Sec.69A of the Act, quantification of demand as laid down by Sec.115BBE of the Act and also charging of huge interest under Sec.234A and 234B may be VOID IN LAW. vii. For these reasons and other reasons which may be advanced during the course of hearing of the appeal, it is humbly prayed that the reliefs sought for may be allowed in the interests of equity and justice and also to be in consonance with the provisions of law. 5. At the outset, the only contention of the Ld.AR is that the reason for his non compliance to the notices issued by the Ld.AO and Ld.CIT(A) was due to the communication gap caused by the accountant engaged by the assessee, who neither pursued the notices nor brought to the attention of the assessee. He further submitted that the non compliance is neither intentional nor deliberate by which the assessee would not derive any 4 I.T.A. No.293/Viz/2023, A.Y.2017-18 Vellanki Bala Bhaskar Rao, Eluru benefit. The Ld.AR further submitted that the assessee hold adequate cash resources to meet the impugned cash deposits made in the banking organizations, identified by the Ld.AO/CIT(A). He, therefore, pleaded to afford an opportunity of being heard before the Ld.CIT(A) to substantiate his case by filing required documentary evidences such as confirmation letters from loan creditors / banker’s statements and other documents in support of his claim. 6. Per contra, the Ld.DR argued that the Ld.CIT(A) is justified in dismissing the appeal of the assessee for non compliance to various statutory notices issued from time to time. The Ld.DR, therefore, pleaded to uphold the order passed by the Ld.CIT(A) and dismiss the appeal of the assessee. 7. We have heard both the parties and perused the material available on record. It is apparent from the records that the Ld.AO as well as the Ld.CIT(A) dismissed the appeal of the assessee due to non compliance to various statutory notices issued by the revenue authorities from time to time. The only contention of the assessee is, the reason for non- compliance was only due to the communication gap, which is neither intentional nor deliberate and the assessee has adequate cash resources 5 I.T.A. No.293/Viz/2023, A.Y.2017-18 Vellanki Bala Bhaskar Rao, Eluru to meet the impugned cash deposits made. Keeping in view the aforesaid facts and circumstances of the case, the principles of natural justice and considering the plea of the assessee to provide an opportunity of being heard before the Ld.CIT(A), we are inclined to remit the matter back to the file of the Ld.CIT(A) with a direction to afford an opportunity of being heard to the assessee in the interest of justice. The assessee is also directed to adhere to the notices issued by the revenue authorities and cooperate during the proceedings. Accordingly, the grounds raised by the assessee are allowed for statistical purpose. 8. In the result, appeal of the assessee is allowed for statistical purpose. Order pronounced in the open court on 19 th April, 2024. Sd/- Sd/- (एस बालाकृ ष्णन) (द ु व्वूरु आर.एल रेड्डी) (S.BALAKRISHNAN) (DUVVURU RL REDDY) लेखा सदस्य/ACCOUNTANT MEMBER न्याधयक सदस्य/JUDICIAL MEMBER Dated : 19.04..2024 L.Rama, SPS 6 I.T.A. No.293/Viz/2023, A.Y.2017-18 Vellanki Bala Bhaskar Rao, Eluru आदेश की प्रतितिति अग्रेतिि/Copy of the order forwarded to:- 1. ननधधाऩरती/ The Assessee– Shri Vellanki Bala Bhaskar Rao, Flat No.A5, Harsha Palace, Tikkanna Somayajulu Street, Ashok Nagar, Eluru 2. रधजस्व/The Revenue – The Income Tax Officer, Ward-2, R.R.Pet, Eluru 3. The Principal Commissioner of Income Tax, Rajahmundry 4. नवभधगीय प्रनतनननध, आयकर अपीलीय अनधकरण, नवशधखधपटणम / DR,ITAT, Visakhapatnam 5..गधर्ा फ़धईल / Guard file आदेशधनुसधर / BY ORDER Sr. Private Secretary ITAT, Visakhapatnam