N.Mahendra Singh, Nellore, Nellore V. ITO, Ward-1, Nellore, Nellore

ITA 436/HYD/2015

• Counselvise Citation: 43622514 RSA 2015
• Duration Of Justice: 2 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-07-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2009-2010
• Appeal Filed On: 20-04-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAMAKRISHNA BANDI
• Assessee Lawyers: V RAGHAVENDRA RAO
• Keywords: Opportunity of being heard
• Section: 144

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES A : HYDERABAD BEFORE SHRI P. M. JAGTAP, ACCOUNTANT MEMBER AND SMT. ASHA VIJAYARAGHAVAN, JUDICIAL MEMBER ITA.NO.436/HYD/2015 ASSESSMENT YEAR 2009-2010 MR. N. MAHENDRA SINGH, NELLORE. PAN BACPS0224B VS. THE INCOME TAX OFFICER, WARD-1, NELLORE. (APPELLANT) (RESPONDENT) FOR ASSESSEE : MR. V. RAGHAVENDRA RAO FOR REVENUE : MR. RAMAKRISHNA BANDI DATE OF HEARING : 0 1 .0 7 .2015 DATE OF PRONOUNCEMENT : 03 .0 7 .2015 ORDER PER P.M. JAGTAP, A.M. THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF LD. CIT(A), TIRUPATI DATED 23. 03.2015 PASSED EXPARTE WHEREBY HE CONFIRMED THE ADDITION OF RS.29,55,000 MADE BY THE A.O. TO THE TOTAL INCOME O F THE ASSESSEE ON ACCOUNT OF UNEXPLAINED CASH DEPOSITS FO UND TO BE MADE IN THE BANK ACCOUNT OF THE ASSESSEE. 2. THE ASSESSEE IN THE PRESENT CASE IS AN INDIVIDUAL WHO FILED HIS RETURN OF INCOME FOR THE Y EAR UNDER CONSIDERATION ON 31.03.2011 DECLARING TOTAL I NCOME OF RS.1,72,400 UNDER THE HEAD INCOME FROM OTHER SOURCES. AS PER THE INFORMATION RECEIVED BY THE A. O., THE 2 ITA.NO.436/HYD/2015 MR. N. MAHENDRA SINGH, NELLORE. ASSESSEE HAD MADE CASH DEPOSITS OF RS.24,55,000 IN THE BANK ACCOUNT MAINTAINED WITH KOTAK MAHINDRA BANK LTD., MUMBAI. IN ORDER TO EXAMINE THE SOURCE OF THE SAID CASH DEPOSITS, THE CASE OF THE ASSESSEE WAS SELECTE D BY A.O. FOR SCRUTINY AND NOTICE UNDER SECTION 143(2) W AS ISSUED ON 29.08.2011. SINCE THE SAID NOTICE CAME BA CK UN-SERVED, LOCAL ENQUIRIES WERE MADE BY THE A.O. WH ICH REVEALED THAT THE HOUSE AT THE ADDRESS GIVEN BY THE ASSESSEE WAS VACATED LONG BACK. IN THE ABSENCE OF A NY NEW ADDRESSED FURNISHED BY THE ASSESSEE, THE A.O. G OT THE NOTICE UNDER SECTION 143(2) SERVED BY AFFIXTURE AT THE LAST KNOWN ADDRESS THROUGH HIS INSPECTOR AND SINCE THERE WAS NO RESPONSE FROM THE ASSESSEE TO THE SAID NOTICE SE RVED BY AFFIXTURE, HE PROCEEDED TO COMPLETE THE ASSESSMENT EXPARTE TO THE BEST OF HIS JUDGMENT UNDER SECTION 1 44 VIDE ORDER DATED 23.12.2011 MAKING ADDITION OF RS.29,55, 000 TO THE TOTAL INCOME OF THE ASSESSEE ON ACCOUNT OF C ASH DEPOSITS FOUND TO BE MADE IN THE BANK ACCOUNT TREAT ING THE SAME AS UNEXPLAINED. 3. AGAINST THE ORDER PASSED BY THE A.O. UNDER SECTION 144, AN APPEAL WAS PREFERRED BY THE ASSESSE E BEFORE THE LD. CIT(A). DURING THE COURSE OF APPELLA TE PROCEEDINGS BEFORE THE LD. CIT(A), THERE WAS NO RES PONSE TO THE TWO NOTICES ISSUED BY THE LD. CIT(A) FIXING THE APPEAL OF THE ASSESSEE FOR HEARING. THE LD. CIT(A) THEREFORE, PROCEEDED TO DISPOSE OF THE APPEAL OF TH E ASSESSEE EXPARTE AND CONFIRMED THE ADDITION MADE BY THE A.O. ON ACCOUNT OF UNEXPLAINED CASH DEPOSITS FOUND TO BE 3 ITA.NO.436/HYD/2015 MR. N. MAHENDRA SINGH, NELLORE. MADE IN THE BANK ACCOUNT OF THE ASSESSEE. AGGRIEVED BY THE ORDER OF THE LD. CIT(A), THE ASSESSEE HAS PREFE RRED THIS APPEAL BEFORE THE TRIBUNAL. 4. WE HAVE HEARD THE ARGUMENTS OF BOTH THE SIDES AND ALSO PERUSED THE RELEVANT MATERIAL ON REC ORD. AS SUBMITTED BY THE LD. COUNSEL FOR THE ASSESSEE, THE ASSESSEE HAD SHIFTED FROM NELLORE TO HYDERABAD LONG BACK AND HE THEREFORE WAS NOT AWARE OF ANY NOTICES SERVE D BY THE A.O. BY AFFIXTURE AT THE ADDRESS AT NELLORE. HE HAS SUBMITTED THAT ASSESSEE ALSO COULD NOT APPEAR BEFOR E THE LD. CIT(A) AS HE WAS NOT KEEPING GOOD HEALTH DURING THE RELEVANT TIME. HE HAS INVITED OUR ATTENTION TO THE RELEVANT DOCUMENTS PLACED AT PAGES 1 TO 3 OF HIS PAPER BOOK TO SHOW THAT AN APPLICATION DATED 17.03.2015 SEEKING ADJOURNMENT WAS DULY FORWARDED BY THE ASSESSEE TO T HE LD. CIT(A) BY COURIER ALONG WITH MEDICAL CERTIFICAT E. KEEPING IN VIEW THIS DOCUMENTARY EVIDENCE FILED BY THE LD. COUNSEL FOR THE ASSESSEE, WE ARE OF THE VIEW TH AT THERE WAS A SUFFICIENT CAUSE WHICH PREVENTED THE ASSESSEE FROM APPEARING BEFORE THE LD. CIT(A) WHEN HIS APPEAL WAS FIXED FOR HEARING AND THIS POSITION IS NOT DISPUTED EVEN BY THE LEARNED D.R. IN THAT VIEW OF THE MATTER, WE CONSIDE R IT FAIR AND PROPER AND IN THE INTEREST OF JUSTICE TO SET AS IDE THE IMPUGNED ORDER OF THE LD. CIT(A) AND REMIT THE MATT ER BACK TO HIM FOR DISPOSING OF THE APPEAL OF THE ASSE SSEE AFRESH ON MERIT, AFTER GIVING THE ASSESSEE ONE MORE OPPORTUNITY OF BEING HEARD. THE ASSESSEE IS ALSO DI RECTED 4 ITA.NO.436/HYD/2015 MR. N. MAHENDRA SINGH, NELLORE. TO EXTEND FULL COOPERATION TO THE LD. CIT(A) IN ORD ER TO ENABLE HIM TO DISPOSE OF THE APPEAL EXPEDITIOUSLY. 5. IN THE RESULT, APPEAL OF THE ASSESSEE IS TREATE D AS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 03.07.2015. SD/- SD/- (ASHA VIJAYARAGHAVAN) (P.M. JAGTAP) JUDICIAL MEMBER ACCOUNTANT MEMBER HYDERABAD, DATED 03 RD JULY, 2015 VBP/- COPY TO 1. MR. N. MAHENDRA SINGH, 26/15/252, 3 RD CROSS ROAD, VANAM THOPU, KONDAYAPALEM, NELLORE 524 004. 2. THE INCOME TAX OFFICER, WARD - 1, NELLORE. 3. THE COMMISSIONER OF INCOME TAX (A) , AAYAKAR BHAVAN, K.T. ROAD, TIRUPATI 517 501. 4. THE CIT, TIRUPATI 5. D.R. I.T.A.T. A BENCH, HYDERABAD. 6. GUARD FILE.