SUNIL KUMAR VERMA, BAREILLY V. INCOME TAX OFFICER-2(2), BAREILLY

ITA 69/LKW/2021

AI Insights

This case involves an appeal by Sunil Kumar Verma against the orders of the Income Tax Officer-2(2), Bareilly, and the Commissioner of Income-tax (Appeals), Bareilly, concerning the assessment year 2010-11. The primary contention was the ex-parte nature of the assessments and appeals, where the assessee failed to respond to multiple notices and did not file his Income Tax Return (ITR) for the relevant assessment year despite significant cash deposits and credits in his bank account. The Tribunal noted the procedural lapses and the need for a fair hearing, leading to the decision to remand the case for a fresh assessment.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 123069 (ITAT-LUCKNOW)
• Duration Of Justice: 8 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-11-2022
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 27-11-2022
• Assessment Year: misc
• Appeal Filed On: 23-03-2022
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 69

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH “B”, LUCKNOW BEFORE SHRI MAHAVIR SINGH, VICE PRESIDENT AND SHRI GIRISH AGRAWAL, ACCOUNTANT MEMBER ITA No.69/Lkw/2021 Assessment Year 2010-11 Income Tax Officer-2(2), Bareilly Vs. Sunil Kumar Verma, C-114-7, Rajendra Nagar, Bareilly, PAN – AESPV 3107P (Respondent) (Appellant) Shri Jitendra Kumar Yadav, Advocate Appellant by Shri Amit Nigam, DR Respondent by 28/11/2022 Date of hearing 29/11/2022 Date of pronouncement O R D E R PER BENCH: This appeal by assessee is arising out of the order of Commissioner of Income-tax (Appeals), Bareilly in Appeal No.CIT(A), Bareilly/10478/2019-20 dated 13-08-2020. The assessment was framed by Income Tax Officer-2(2), Bareilly for the assessment year 2010-11 u/s.147 r.w.s.144 of the Income Tax Act, 1961 (hereinafter referred to as 'the Act') vide his order dated 21-12-2017. At the outset, the ld. counsel stated that the order passed by ld. CIT(A) is ex-parte and even on merits the CIT(A) has not discussed anything except by giving a cryptic finding in Para 6, which reads as under: “6. From the perusal of the facts available on record it is evident that the above appeal is devoid of merit as the appellant failed to file his ITR for the AY 2010-11 despite depositing cash amounting to Rs.35,40,000/- in his bank account and getting credit of Rs.45,00,000/- through RTGS in his bank account. The appellant failed to explain the sources of above cash deposits and credit entry either before the AO during the 2 assessment proceeding or during the appellate proceeding. Thus, the above additions made by the AO are completely justified.” 2. The ld. counsel stated that the AO has also framed ex-parte assessment and has not allowed reasonable opportunity of being heard to the assessee. When this fact is confronted to the ld. Sr. DR, he could not controvert the above fact situation. 3. After hearing rival contentions and going through the facts of the case, we noticed that there is unexplained cash deposit to the tune of Rs.80.40 lacs added by AO as unexplained u/s. 69 of the Act and also addition of interest of Rs.8,532/-. It is clear that the assessment order is ex-parte and even the order of ld. CIT(A) is also ex-parte. Admittedly, there is some fault on the part of the assessee also and he has not responded to the notices issued at least four times by ld. CIT(A), it means that Revenue is not at complete fault but in the interest of justice that there should be substantial justice and substantial issue should be decided based on facts available on record as well as the CIT(A) or AO also could have gathered the information. In the interest of substantial justice, we set aside the orders of the lower authorities i.e. the ld. CIT(A) and Assessing Officer and remand the matter back to the file of the AO for fresh adjudication. Needless to say that the assessee will represent before the AO and will cooperate in providing information so that the AO can reach to proper conclusion according to law in deciding this issue of unexplained cash deposit including interest. 4. In the result, appeal of the assessee is allowed for statistical purposes. (Order pronounced in the open court on 29/11/2022) Sd/- Sd/- (GIRISH AGRAWAL) (MAHAVIR SINGH) Accountant Member Vice President Aks – Dtd. 29/11/2022 3 Copy of order forwarded to: (1) The appellant (2) The respondent (3) Commissioner (4) CIT(A) (5) Departmental Representative (6) Guard File Assistant Registrar