Satishchandra Lalsageb Yadav, Sangli V. Income Tax Officer,Ward-4, Sangli, Sangli

ITA 427/PUN/2022

AI Insights

The case involves Satishchandra Lalsaheb Yadav, the appellant, contesting an assessment order for the year 2017-18, which was passed under section 144 of the Income Tax Act, 1961 by the Income Tax Officer, Ward 4, Sangli. The assessment included the amount of specified bank notes (SBN) as unexplained cash credit under section 68 of the Act. The appellant argued that the tax authorities erred in taxing the SBN without considering the nature of his business and the concession available to accept cash during the demonetization period. The first appellate authority, CIT(A)/NFAC, Delhi, upheld the AO's decision without a detailed examination of the grounds. The ITAT found that the appellant was not given a fair opportunity to present his case and thus remanded the matter for a de-nova adjudication.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 136282 (ITAT-PUNE)
• Duration Of Justice: 10 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-04-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 02-04-2023
• Assessment Year: 2017-2018
• Appeal Filed On: 26-05-2022
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: UMESHKUMAR MALI
• Keywords: Unexplained cash credit
• Section: 68; 144; 250

Judgement Text

॥ आयकर अपीलीय न्यायाधिकरण, पुणे “बी” न्यायपीठ, पुणे में ॥ ITAT-Pune Page 1 of 4 IN THE INCOME TAX APPELLATE TRIBUNAL, PUNE “B” BENCH, PUNE BEFORE HON’BLE SHRI S. S. GODARA, JUDICIAL MEMBER AND SHRI G. D. PADMAHSHALI, ACCOUNTANT MEMBER आयकर अपऩल सं. / ITA No. 427/PUN/2022 निर्धारण वर्ा / Assessment Year : 2017-18 Satishchandra Lalsaheb Yadav, Kadepur, Kadegaon, Sangli – 415305 PAN: ADQPY2675L . . . . . . . अपऩलधथी / Appellant बनाम / V/s Income Tax Officer, Ward 4, Sangli . . . . . . . प्रत्यथी / Respondent द्वारा / Appearances Assessee by : Shri Umeshkumar Mali Revenue by : Shri M. G. Jasnani सपिवधई की तधरऩख / Date of conclusive Hearing : 03/04/2023 घोर्णध की तधरऩख / Date of Pronouncement : 03/04/2023 आदेश / ORDER PER G. D. PADMAHSHALI, AM; This appeal of the assessee for the assessment year [for short “AY”] 2017-18 is assailed against the first appellate order of National Faceless Appeal Centre, Delhi [for short “CIT(A) /NFAC”] dt. 30/03/2022 passed u/s 250 of the Income-tax Act,1961 [for short “the Act”], which ascended out of assessment order dt. 29/11/2019 passed u/s 144 by the Income Tax Officer Ward 4, Sangli [for short “AO”] for assessment year [for short “AY”] 2017-18. Satishchandra Lalsaheb Yadav ITA No. 427/PUN/2022 A.Y. 2017-18 ITAT-Pune Page 2 of 4 2. During the course of physical hearing the Ld. AR for the appellant adverting to the impugned order submitted that, both the lower tax authorities erred in taxing the amount of specified bank notes [for short “SBN”] as unexplained cash credit u/s 68 of the Act in violation of principle of natural justice and hence by the assessee brought up the matter by the present appeal with the following grounds; “1. On the facts and circumstances of the case the Learned Assessing Officer has erred in completion the assessment u/s 144 of the Income Tax Act, 1961 without considering nature of business being petrol pump and concession available to assessee to accept cash in demonization period. 2. On the facts and circumstances of the case the Learned Assessing Officer has erred to make addition u/s 68 of Income Tax Act 1961 without considering movement / details of Bank statement. 3. The Appellant crave, leave to, add to, alter or amend the aforesaid grounds of appeal.” 3. After hearing to rival contentions of both the parties; and subject to the provisions of rule 18 of ITAT, Rules 1963 perused the material placed on Satishchandra Lalsaheb Yadav ITA No. 427/PUN/2022 A.Y. 2017-18 ITAT-Pune Page 3 of 4 record; and without going into the merits of the case, we note that, in the event of failure on the part of assessee to make effective representation in establishing the nature and source of cash deposits made into his bank account, the Ld. AO framed the assessment to the best of his judgement u/s 144 of the Act. We further note that, when assessee challenged the addition before the first appellate authority, the Ld. CIT(A) has perfunctory dismissed the appeal ex-parte echoing the findings of the Ld. AO without adjudicating grounds of substantive merit and passing a well-reasoned speaking order in terms of section u/s 250 of the Act. 4. In the light of aforestated observations, we concur with Ld. AR that, since the rights and liabilities under the impugned tax proceedings has not been conclusively dealt and determined, the matter deserves to be remanded for de-nova adjudication. For the reason without going into the merits of the case and in the interest of justice, we set-aside the Satishchandra Lalsaheb Yadav ITA No. 427/PUN/2022 A.Y. 2017-18 ITAT-Pune Page 4 of 4 impugned order of first appellate authority and restore the matter back to the file of Ld. AO for fresh adjudication in conformity with the principle of natural justice. At the same time, we direct the assessee to represent his case on merits with necessary documentary evidences and without seeking any unreasoned adjournment. 5. In result, the appeal of the assessee is ALLOWED FOR STATISTCIAL PURPOSE in aforestated terms. In terms of rule 34 of ITAT Rules, the order pronounced in the open court on this MONDAY 03 rd day of April, 2023. -S/d- -S/d- S. S. GODARA G. D. PADMAHSHALI JUDICIAL MEMBER ACCOUNTANT MEMBER पुणे / PUNE ; दिन ांक / Dated : 3 rd day of April, 2023. Ashwini आदेश की प्रधिधलधप अग्रेधिि / Copy of the Order forwarded to : 1.अपील र्थी / The Appellant. 2. प्रत्यर्थी / The Respondent. 3. The Pr. CIT -1 (MH-India) 4. The CIT(A)-NFAC, Delhi (India) 5. DR, ITAT, Pune Bench ‘B’, Pune 6. ग र्डफ़ इल / Guard File. आिेश नुस र / By Order वररष्ठ दनजी सदिव / Sr. Private Secretary आयकर अपीलीय न्य य दिकरण, पुणे / ITAT, Pune.