Shri Rameshwer Mangilal, Ujjain V. The ITO Agar Malwa, Agar Malwa

ITA 57/Ind/2023

AI Insights

The case involves Shri Rameshwer Mangilal, who appealed against the order of the Commissioner of Income Tax (Appeals) concerning the assessment year 2009-10. The primary contention was the addition of unexplained cash deposits and agricultural income to the assessee's income, which were allegedly not supported by facts or records. The Assessing Officer had initially added these amounts based on a revision order under section 263 of the Income Tax Act, citing non-compliance with notices. The Tribunal noted that the assessee did not receive the notices, leading to an ex-parte order, and thus decided to remand the case for a thorough re-examination of the evidence and explanations provided by the assessee.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 130617 (ITAT-INDORE)
• Duration Of Justice: 3 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-05-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 29-05-2023
• Assessment Year: 2009-2010
• Appeal Filed On: 20-02-2023
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Business income; Revision of order; Set aside
• Section: 263; 144; 142(1)

Judgement Text

Page 1 of 3 आयकर अपील य अ धकरण, इंदौर यायपीठ, इंदौर IN THE INCOME TAX APPELLATE TRIBUNAL INDORE BENCH, INDORE BEFORE SHRI VIJAY PAL RAO, JUDICIAL MEMBER AND SHRI B.M. BIYANI, ACCOUNTANT MEMBER ITA No.57/Ind/2023 (Assessment Year:2009-10) Shri Rameshwer Mangilal Village Banjari, Post Delchi, Tehsil Mahidpur Ujjain Vs. ITO Agar Malwa (Appellant / Assessee) (Respondent/ Revenue) PAN: AXWPR 5698E Assessee by Shri S.S. Deshpande, AR Revenue by Shri Ashish Porwal, Sr. DR Date of Hearing 30.05.2023 Date of Pronouncement 31.05.2023 O R D E R Per Vijay Pal Rao, JM: This appeal by the assessee is directed against the order dated 03.02.2023 of Ld. Commissioner of Income Tax (Appeals) (in short Ld. CIT(A), National Faceless Appeal Centre, Delhi for Assessment Year 2009- 10. The assessee has raised following grounds of appeal: 1.That the Learned Assessing Officer erred in adding a sum of Rs.13,77,828/- being the amount in cash deposited in Saving Bank A/c and Rs.69,780/- being the amount of agriculture income shown in my return of ncome and accepted by AO in scrutiny proceedings totalling to Rs.14,47,608/- without going through the facts of the case and material on record and which is most arbitrary, unwarranted and not backed by the facts on records. ITA No.57/Ind/2023 Shri Rameshwar Mangilal. Page 2 of 3 Page 2 of 3 2.That the Learned Assessing Officer erred in adding a sum of Rs.13,77,828/- being the amount in cash deposited in Saving Bank account out of agriculture income of hiself and his family members out of sale proceeds of agriculture income of relatives which were fuly explaine and accepted in the previous assessment proceedings and added without going through the facts of the case which is totally wrong and unjustified. 3.That without prejudice to the aboe as an alternative ground the appellant shown a business income of rs.1,36,120 naturally the business receipt in respect thereof comes at Rs.17,01,500 when NP is worked out at 8% of turnover meaning thereby the business receipt was more than the amount of cash deposited and as per jurisdictional ITAT’s verdict the cash deposited in bank account should be linked to the turnover and only net profit element be added, in the present case which is already offered to the tax and hence no addition was called for. Apparently the order passed by the AO is most arbitrary, unwarranted and not backed by the facts on records. 4. That the Learned Assessing Officer erred in disregarding agriculture income of Rs.69,780/- without going through the facts of the case and material on record which is wrong and unjustified. 5. That the assessment order passed by the Learned Assessing Officer is wrong, unjustified and against the principle of natural justice. 2. At the time of hearing Ld. AR of the assessee has submitted that Ld. CIT(A) has passed impugned order ex-parte due to non-filing of submissions by the assessee. He has pointed out that notices were issued to the e-mail but the assessee could not receive the same. He has further submitted that due to non-receipt of notice the assessment order was also passed ex-parte by the AO pursuant to the revision order u/s 263 of the Act. He has pleaded that the matter may be set aside to the record of the AO for re-adjudication of the same after considering the relevant material and explanation filed by the assessee. 4. On the other hand, Ld. DR has no serious objection if the matter is set aside to the record of the AO. 5. We have considered the rival submissions and relevant material on record. The AO while passing the order u/s 144 r.s.s. 263 of the Act as ITA No.57/Ind/2023 Shri Rameshwar Mangilal. Page 3 of 3 Page 3 of 3 recorded that notice u/s 142(1) along with questionnaire were issued to the assessee but there is no compliance on the part of the assessee. Accordingly, the AO proposed to complete assessment u/s 144 of the Act on the basis of the material/information available on record. The AO has made the addition on account of unexplained cash credits as well as agricultural income of Rs.69,780/- declared by the assessee. The appeal of the assesse was dismissed by the Ld. CIT(A) due to no response to the notice issued by the Ld. CIT(A) at the e-mail ID given in form 35. Thus, it is clear that the assessment order was passed without considering relevant evidence and explanation regarding the cash deposit/credit as well as the agricultural income. In the facts and circumstances of the case and in the interest of justice the impugned order is set aside and the matter is remanded to the record of the AO for re-adjudication of the same after considering relevant evidence and explanation to be produced by the assessee. 6. In the result, appeal of assessee is allowed for statistical purposes. Order pronounced in the open court on 31.05.2023. Sd/- Sd/- (B.M. BIYANI) (VIJAY PAL RAO) Accountant Member Judicial Member Indore, 31 .05.2023 Patel/Sr. PS Copies to: (1) The appellant (2) The respondent (3) CIT (4) CIT(A) (5) Departmental Representative (6) Guard File By order UE COPY Sr. Private Secretary Income Tax Appellate Tribunal Indore Bench, Indore