Shakti Sarjan Pvt. Ltd., , Surat V. Dy. Commissioner of Income Tax, Cir. 2(1)(1), Surat

ITA 323/SRT/2023

AI Insights

The case involves Shakti Sarjan Private Ltd., the appellant, contesting an order from the National Faceless Appeal Centre/Commissioner of Income Tax (Appeals) dated 24/03/2023 for the Assessment Year 2015-16. The primary contention was the CIT(A)'s dismissal of the appeal without a speaking order, which the assessee argued was perfunctory and based on tenuous grounds. The CIT(A) had earlier made an addition of Rs. 20,61,800 to the assessee's income, treating it as unexplained cash credit under section 68 of the Income Tax Act, 1961, which the assessee claimed was for booking flats and shops. The ITAT found merit in the assessee's request for another opportunity to present their case, citing non-compliance due to unfamiliarity with the virtual hearing system as the reason for the initial lack of submission.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 302136 (ITAT-SURAT)
• Duration Of Justice: 2 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-07-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 31-07-2023
• Assessment Year: 2015-2016
• Appeal Filed On: 07-05-2023
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Unexplained cash credit
• Section: 68

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, SURAT BENCH, SURAT BEFORE SHRI PAWAN SINGH, JUDICIAL MEMBER AND DR. ARJUN LAL SAINI, ACCOUNTANT MEMBER ITA No. 323/SRT/2023 (AY: 2015-16) (Virtual Hearing) Shakti Sarjan Private Ltd., 201-202, Swagat Business Hub, Ichhapore, Surat-395007. PAN No. AAOCS 3608 M Vs. D.C.I.T., Circle-2(1)(1), Surat, Range-4. Appellant/ assessee Respondent/ revenue Assessee represented by Shri Ankit Rathi, CA Department represented by Shri Vinod Kumar, Sr. DR Date of Institution of Appeal 08/05/2023 Date of hearing 01/08/2023 Date of pronouncement 01/08/2023 Order under Section 254(1) of Income Tax Act PER: PAWAN SINGH, JUDICIAL MEMBER: 1. This appeal by the assessee is directed against the order of learned National Faceless Appeal Centre, Delhi (NFAC)/Commissioner of Income Tax (Appeals) (in short, the ld. CIT(A)) dated 24/03/2023 for the Assessment Year (AY) 2015-16. The assessee has raised following grounds of appeal: “1. That on the facts and in the circumstances of the case and in law, ld. CIT(A) erred in not passing speaking order on our appeal grounds and perfunctorily dismissing our appeal on tenuous and perverse grounds. 2. On the facts and circumstances of the case as well as law on the subject, the ld. CIT(A) has erred in making addition of Rs. 20,61,800/- by treating the advance received for booing of flat as unexplained cash credit u/s 68 of the I.T. Act, 1961. ITA No. 323/Srt/2023 Shakti Sarjan P Ltd. Vs DCIT 2 3. That the appellant craves leave to add, to amend, modify, rescind, supplement or late any of the grounds stated hereinabove, either before or at the time of hearing of this appeal.” 2. Rival contentions of the learned representatives of the parties have been heard and record perused. At the outset of hearing, the learned Authorised Representative (ld. AR) of the assessee submits that the assessee could not make compliance before the ld. CIT(A) as the earlier counsel has not informed about various notices issued through ITBA portal. The assessee was not well-versed with the system of virtual hearing so he could not make proper compliance. The ld. AR of the assessee further submits that the assessee has good case on merit and is likely to succeed if the assessee is given one more opportunity to contest the case on merit. The ld AR for the assessee submits that the order of ld CIT(A) is not on merits and dismissed the appeal, simply by holding that no submissions was filed by the assessee. The order of ld CIT(A) is not on merit and mandate of section 250(6) of Income tax Act. The ld AR for the assessee submits that he undertakes on behalf of assessee to be more vigilant in attending the hearing and making due compliance of the notices of lower authorities. 3. On the other hand, the learned Senior Departmental Representative (ld. Sr. DR) for the revenue submits that the assessee has casual in attending the hearing. The ld. CIT(A) has given more than seven ITA No. 323/Srt/2023 Shakti Sarjan P Ltd. Vs DCIT 3 opportunities, despite giving sufficient opportunity, no compliance was made. The assessee deserve no more opportunity. 4. We have considered the submissions of both the parties and perused the record carefully. We find that the assessing officer while passing the assessment order made addition of Rs. 20,61,800/- under section 68 on account of unexplained cash credit in the assessment order dated 07/09/2021. Though, the assessee explained that credit in his bank account is for booking of flats and shops. Such explanation of assessee was not accepted by assessing officer. We find that the ld. CIT(A) passed the order in an ex parte proceeding. Before, us the ld. AR of the assessee explained that their consultant has not informed that and now the assessee will be more vigilant in making timely compliance before the First Appellate Authority. Considering the facts that substantial rights of the assessee is involve in the present appeal, thus, keeping in view the principles of natural justice, in our view the assessee deserve one more opportunity of hearing, therefore, the grounds of appeal raised by the assessee is restored back to the file of ld. CIT(A) to decide the appeal on merit afresh. The assessee is also directed to be more vigilant in future and to make timely compliance and file necessary evidence and not to seek adjournment without any ITA No. 323/Srt/2023 Shakti Sarjan P Ltd. Vs DCIT 4 valid reason. Hence, grounds of appeal raised by the assessee are allowed for statistical purposes only. 5. In the result, this appeal of assessee is allowed for statistical purposes only. Order announced in open court on 1 st August, 2023 at the time of hearing. Sd/- Sd/- (Dr. ARJUN LAL SAINI) (PAWAN SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER Surat, Dated: 01/08/2023 *Ranjan Copy to: 1. Assessee – 2. Revenue – 3. CIT 4. DR 5. Guard File By order Sr. Private Secretary, ITAT, Surat