Shri Achal Nath, Ludhiana V. ITO-7(1), Ludhiana

ITA 88/CHANDI/2020

AI Insights

This case involves an appeal by the assessee, Shri Achal Nath, against the order of the ld. CIT(A)-3 Ludhiana, which was dismissed ex-parte for want of prosecution. The assessee's case was reopened due to unexplained cash deposits and unreported interest income, leading to an assessment under sections 144 and 147 of the Income Tax Act. The assessee did not comply with notices to file a return of income, resulting in the AO treating the deposits as unexplained under section 68. The CIT(A)'s dismissal of the appeal was challenged in the Income Tax Appellate Tribunal, which decided to set aside the matter back to the AO for a fresh assessment after providing the assessee an opportunity to explain the deposits.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 127535 (ITAT-CHANDIGARH)
• Duration Of Justice: 3 year(s) 4 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-06-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 06-06-2023
• Assessment Year: 2011-2012
• Appeal Filed On: 23-01-2020
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 68; 148; 144; 142(1)

Judgement Text

आयकर अपील य अ धकरण,च डीगढ़ यायपीठ “B” , च डीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BENCH “B”, CHANDIGARH ी आकाश द प जैन, उपा य एवं ी #व$म &संह यादव, लेखा सद+य BEFORE: SHRI A.D.JAIN, VICE PRESIDENT AND SHRI VIKRAM SINGH YADAV, ACCOUNTANT MEMBER आयकर अपील सं./ ITA NO. 88/Chd/ 2020 नधा रण वष / Assessment Year : 2011-12 Shri Achal Nath, 131-B, Rishi Nagar, Near Telephone Exchange, Ludhiana. बनाम The ITO Ward-7(1), Ludhiana. थायी लेखा सं./PAN NO: AFRPN5706L अपीलाथ /Appellant यथ /Respondent नधा रती क! ओर से/Assessee by : None राज व क! ओर से/ Revenue by : Smt. Amanpreet Kaur, Sr. DR स ु नवाई क! तार&ख/Date of Hearing : 07.06.2023 उदघोषणा क! तार&ख/Date of Pronouncement : 09.06.2023 आदेश/Order PER VIKRAM SINGH YADAV, AM: This is an appeal filed by the assessee against the order of the ld. CIT(A)-3 Ludhiana dated 18.11.2019. 2. Briefly the facts of the case are that the case of the assessee was reopened for the reasons that there were cash deposits amounting to Rs.9,83,000/- in the bank account maintained by the assessee with Oriental Bank of Commerce and there was also interest income as per Form 26AS amounting to Rs.10,649/- and given that the assessee has not filed his return of income, the amount of Rs.9,93,649/- was held as income which has escaped ITA 88/CHD/2020 A.Y. 2011-12 2 assessment and notice u/s 148 was issued. In response to notice u/s 148 of the Act, there was, however, no compliance made by the assessee in terms of filing a return of income. Thereafter, notice u/s 142(1) and subsequently a Show Cause was also issued and thereafter, the assessment was completed u/s 144 read with Section 147 of the Act. As per the AO, in absence of any explanation given by the assessee explaining the source of cash deposit amounting to Rs.9,83,000/- deposited in his bank account, the whole of the cash deposit was treated as unexplained cash deposit u/s 68 and after considering the interest income of Rs.10,649/- which was also not offered to tax, the assessed income was determined at Rs.9,93,650/. 3. Being aggrieved, the assessee carried the matter in appeal before the ld. CIT(A). On perusal of the order passed by the ld. CIT(A), it is noted that various notices were issued which remained un-complied with and thereafter in absence of any compliance on the part of the assessee, the appeal of the assessee was dismissed ex-parte for want of prosecution. 4. Against the order of the ld. CIT(A), the assessee is in appeal before us and the matter has come up for hearing today after issuance of notices which again remained un-complied with. None has appeared on behalf of the assessee nor any adjournment application was filed. Given that the appeal was filed way back in the year 2020, it was decided that no useful purpose would be ITA 88/CHD/2020 A.Y. 2011-12 3 served in adjourning the matter any further and basis the material available on record and after hearing ld. DR, the matter is hereby decided. 5. In the grounds of appeal, the assessee has mentioned that he couldn’t attend the proceedings before the ld. CIT(A) for the reasons that his new born child was hospitalized for long period and due to the medical conditions which were beyond his control, he could not attend to the proceedings and an opportunity may be provided to him to put forward his necessary submissions. 6. The ld DR is heard who has relied on the order of lower authorities. 7. After hearing the ld DR and considering the submissions of the assessee as apparent from the grounds of appeal and taking into consideration the entirety of material available on record, we believe that the assessee deserve one more opportunity and deem it appropriate that the matter is set aside to the file of the AO to decide the same afresh as per law after providing reasonable opportunity to the assessee. 8. Needless to say the assessee shall attend to the proceedings and file necessary information/documentation explaining the source ITA 88/CHD/2020 A.Y. 2011-12 4 of the cash deposit in his bank account and any other information/documentation as called for by the AO. 9. In the result, appeal of the assessee is allowed for statistical purposes. Order pronounced in the Open Court on 09.06.2023. Sd/- Sd/- आकाश द प जैन #व$म &संह यादव (AAKASH DEEP JAIN) ( VIKRAM SINGH YADAV) उपा य / VICE PRESIDENT लेखा सद+य/ ACCOUNTANT MEMBER Poonam Date: 09.06.2023 आदेश क! त,ल-प अ.े-षत/ Copy of the order forwarded to : 1. अपीलाथ / The Appellant 2. यथ / The Respondent 3. आयकर आय ु /त/ CIT 4. -वभागीय त न2ध, आयकर अपील&य आ2धकरण, च5डीगढ़/ DR, ITAT, CHANDIGARH 5. गाड फाईल/ Guard File आदेशान ु सार/ By order, सहायक पंजीकार/ Assistant Registrar