VISHWAS SWROOP GROVER, Hathras U.P V. Income Tax Officer, HATHRAS

ITA 62/AGR/2023

• Counselvise Citation: [2024] 100 COUNSELVISE.COM (IT) 1805 (ITAT-AGRA)
• Duration Of Justice: 1 year(s) 1 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-06-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 04-06-2024
• Assessment Year: 2017-2018
• Appeal Filed On: 20-04-2023
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 144; 142(1); 250; 143(2); 69A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AGRA BENCH, AGRA BEFORE: SHRI RAMIT KOCHAR, ACCOUNTANT MEMBER AND SHRI P.C. YADAV, JUDICIAL MEMBER ITA No. 62/Agr/2023 Assessment year : 2017-18 Vishwas Swaroop Grover, 14-B, Ram Nagar Colony, Hathras (U.P.) PAN:ACXPG4852H v. Income-tax Officer, Ward 4(3)(4), Hathras (Appellant) (Respondent) Assessee by : None(Adjournment appl. filed) Revenue by : Sh. Shailendra Srivastava, Sr. DR Date of hearing : 05.06.2024 Date of Pronouncement: 05.06.2024 ORDER PER RAMIT KOCHAR, AM: This appeal in ITA No. 62/Agr/2023 for assessment year 2017-18 has arisen from order dated 31.01.2023 (DIN & Order No.ITBA/NFAC/S/250/2022-23/1049285116(1) passed by ld. CIT(Appeals), NFAC, Delhi u/s. 250 of the Income-tax Act, 1961, which in turn has arisen from the assessment order dated 03.12.2019 in order No. ITBA/AST/S/144/2019-20/1021577361(1) passed by the Assessing Officer u/s. 144 of the Income Tax Act. ITA No. 62/Agr/2023 2 2. Brief facts of the case are that assessee has e-filed return of income on 19.03.2018 declaring income of Rs.6,96,330/-. Case was selected for limited scrutiny through CASS on the reasoning, “cash deposit during demonetization period”. Notices u/s. 143(2) and 142(1) were issued by the Assessing Officer. The assessee did not comply with these notices. Final show cause notice dated 13.11.2019 u/s. 144 of the Income-tax Act was issued by the Assessing Officer to the assessee, but the assessee did not reply to the show cause notice also. Therefore, Assessing Officer made addition of Rs.5,76,000/- on account of unexplained cash deposited during demonetization period in bank accounts Nos. 8511570005969 and 30133104132 of HDFC Bank, Hathras and SBI, Hathras respectively, u/s. 69A r.w.s. 115BBE of the Income-tax Act. 3. Aggrieved, assessee filed appeal before ld. CIT(Appeals) and ld. CIT(Appeals) dismissed the appeal of the assessee ex parte in limine by holding as under : “4. Appellate Decision:- 4.1 Notice was issued on 28.01.2021 fixing the appeal for hearing on 09.02.2021. Again the notice was issued on 25.03.2022 and the case was re-fixed for hearing on 11.04.2022, and finally on 06.09.2022 fixed for hearing on 21.09.2022. However, no submissions were made during the entire appellate proceedings. ITA No. 62/Agr/2023 3 4.2 The aforesaid circumstances show that the appellant is not interested in pursuing its appeal. The maxim 'vigilantibus non- dormientibus jura subvanut' i.e. the law assist those who are vigilant and not those who sleep over their rights, is applicable in this case. 4.3 Hon'ble ITAT in ITA No. 1025-1027/CHD/2005 for the AY 2017-18 in the case of M/s Chhabra Land & Housing Ltd. after following the decision of Hon'ble Supreme Court in the case of B.N. Bhattacharjee & other 118 ITR 461 [SC] held that the appeal does not mean merely filing of the appeal but effectively pursuing the same. 5. In the absence of any reply from the appellant, the matter is being decided ex- parte and on merits. In this case, the assessment was completed under section 144 r.w.s. u/s 142(1) on account of cash deposit during demonization period for Rs.5,76,000/- The assessee was provided several opportunities by the AO before giving the final opportunity in the shape of show cause notices u/s 144 of the IT Act, 1961 dated 13.11.2019 fixing the date of compliance on 19.11.2019. The assessee did not furnish any reply during the course of assessment proceedings. Further, during the appellate proceedings also, appellant did not furnish any written submission adducing therein any explanation/evidence of the source of the cash deposited during demonetization. Therefore, considering the above circumstances and peculiar facts of the case, I do not see any infirmity in the order of the AO hence the same is upheld and grounds raised is dismissed.” 4. Aggrieved, assessee has filed this appeal before Tribunal. None appeared on behalf of the assessee when this appeal was called for hearing. Written adjournment application has been filed by the counsel of assessee, which stands dismissed. Ld. Sr. DR, on the other hand, fairly submitted that ld. CIT(Appeals) has dismissed the appeal of the assessee ex parte in limine and there is no independent reasoning. ITA No. 62/Agr/2023 4 Therefore, matter may be restored to the file of ld. CIT(Appeals) for fresh decision. 5. After considering the submissions of ld. Sr. DR and perusing material on record, we observe that ld. CIT(Appeals) has dismissed the appeal of the assessee ex parte in limine without discussing the issues arising in the appeal on merits. While dismissing the appeal of the assessee, ld. CIT(A) has observed that the assessee is not interested in pursuing the appeal and the order of the Assessing Officer was upheld by ld. CIT(Appeals). There is no independent reasoning given by ld. CIT(Appeals) on merits of the issue. Reasons are cardinal to any judgment/order, as it shows the minds of the appellate authorities as to what weigh in their minds while deciding the appeal. The order of ld. CIT(Appeals) is subject to appeal before the Tribunal and for the higher adjudicating authority to adjudicate the appeal, it is important to know the reasons which weigh in the minds of the appellate authority. In this case, ld. CIT(Appeals) has simply dismissed the appeal of the assessee by upholding the order of Assessing Officer and no independent reasoning is given by ld. CIT(Appeals). The order of ld. CIT(Appeals) is not in compliance with the provisions of section 250(6), which requires ITA No. 62/Agr/2023 5 ld. CIT(Appeals) to state the points for determination, decision thereon and reasons for the decision, which in this case is missing. Thus, in the interest of justice and fairness to both the parties, the order of ld. CIT(Appeals) is set aside and matter is restored to the file of ld. CIT(Appeals) for fresh adjudication keeping in view the provisions of section 250(6) of the Income Tax Act after giving proper opportunity to both the parties. We clarify that we have not commented on the merits of the issues arising in the appeal. We order accordingly. 6. In the result, appeal of assessee is allowed for statistical purposes. Order pronounced in the open court on 05.06.2024 on conclusion of hearing and reduced to writing and signed on 05.06.2024. Sd/- Sd/- (P.C. YADAV) (RAMIT KOCHAR) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 05.06.2024 *aks/-