Noorunnisa Begum, Hyderabad V. ITO, Ward-7(1), Hyderabad

ITA 89/Hyd/2023

AI Insights

The case involves Smt. Noorunnisa Begum, who appealed against the order of the Commissioner of Income Tax (Appeals) - National Faceless Appeal Centre, Delhi, which upheld the addition of Rs. 78 lakhs to her income for the assessment year 2017-18. The addition was based on the Assessing Officer's finding that the assessee did not prove the creditworthiness of her ancestors from whom she inherited the cash. The Tribunal found that the assessee was not given a fair opportunity to present her case, as she claimed not to have received subsequent notices after initially seeking an adjournment. Consequently, the Tribunal decided to set aside the CIT(A)'s order and remand the case for a fresh decision on merits.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 133242 (ITAT-HYDERABAD)
• Duration Of Justice: 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-02-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB-B
• Next Hearing Date: 15-02-2023
• Assessment Year: 2017-2018
• Appeal Filed On: 31-01-2023
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Opportunity of being heard; Set aside

Judgement Text

आयकर अपीलीय अधिकरण, हैदराबाद पीठ में IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES “B”, HYDERABAD BEFORE SHRI RAMA KANTA PANDA, ACCOUNTANT MEMBER & SHRI K.NARASIMHA CHARY, JUDICIAL MEMBER आ.अपी.सं / ITA No. 89/Hyd/2023 (निर्धारण वर्ा / Assessment Year: 2017-18) Smt. Noorunnisa Begum, Hyderabad [PAN No. ADOPB4662N] Vs. Income Tax Officer, Ward-7(1), Hyderabad अपीलधर्थी / Appellant प्रत्‍यर्थी / Respondent निर्धाररती द्वधरध / Assessee by: Shri P. Vinod, AR रधजस्‍व द्वधरध / Revenue by: Shri Kumar Aditya, DR सुिवधई की तधरीख/Date of hearing: 16/02/2023 घोर्णध की तधरीख/Pronouncement on: 16/02/2023 आदेश / ORDER PER K. NARASIMHA CHARY, JM: Aggrieved by the order dated 28/10/2022 passed by the learned Commissioner of Income Tax (Appeals)-National Faceless Appeal Centre (NFAC), Delhi (“Ld. CIT(A)”), in the case of Noorunnisa Begum (“the assessee”) for the assessment year 2017-18, assessee preferred this appeal. 2. Briefly stated relevant facts are that the assessee is an individual and filed the return of income for the assessment year 2017-18 on 05/08/2017 declaring income of Rs. 4,83,890/-. During the scrutiny, the learned Assessing Officer found that there were deposits to the tune of Rs. 78 lakhs in the bank account of the assessee. Assessee explained that she ITA No. 89/Hyd/2023 Page 2 of 4 received the same by way of inheritance through Hibbanama dated 07/08/2009 in the distribution of property with two others, whereunder her mother-in-law bequeathed all the cash (which later on said to have been found to the tune of Rs. 2.35 crores) and jewellery in the cash vault to son and daughter-in-law. According to the assessee, she got Rs. 78 lakhs which was deposited in the bank during demonetization period. Learned Assessing Officer was of the opinion that the creditworthiness of the ancestors through whom the assessee claims the cash was not proved and, therefore, added the entire amount to the income of the assessee. 3. Assessee preferred appeal before the learned CIT(A). learned CIT(A) recorded that he issued notice to assessee on 15/01/2021, 15/03/2021 and 21/09/2022 but the assessee did not respond to the said notices and, therefore, on considering the material on record, he opined that there is nothing on record to contradict the findings of the learned Assessing Officer. He, accordingly, upheld the addition and dismissed the appeal. 4. Plea of assessee in this appeal is that the assessee responded to the notice dated 15/01/2021 and sought an adjournment but subsequently she never received the other two notices and, therefore, could not prosecute her case by submitting the relevant material to establish the creditworthiness of the people through whom she inherited the cash; whereas learned DR contended that when the notice was issued to the address furnished by the assessee in form-35 with postage prepaid, there would be no reason for non-services of such notice on the assessee, and, therefore, the learned CIT(A) is justified in considering the appeal ex-parte. 5. We have gone through the record in the light of the submissions made on either side. It is a fact that the impugned order is an ex-parte order. According to the learned CIT(A), three notices were issued to the assessee on 15/01/2021, 15/03/2021 and the last one on 21/09/2022. There is no denial of the statement made by the assessee that she ITA No. 89/Hyd/2023 Page 3 of 4 responded to the notice dated 15/01/2021 and sought time. According to the assessee, she never received the notices subsequently. Considering the ordinary course of human conduct, we are of the considered opinion that in the fitness of things, it would be proper to give an opportunity to the assessee to substantiate her plea before the learned CIT(A). Though the learned CIT(A) observed in his order that no evidence was produced before him during the appeal proceedings to support the contention of the assessee resulting in dismissal of the appeal, the fact remains that the assessee did not put forth her case before the learned CIT(A) for affective adjudication. 6. In this set of circumstances, what occurs to our mind is that giving an opportunity to the assessee to pursue the matter diligently before the first appellate authority will not cause any prejudice to the case of the Revenue and on the other hand, it would further the ends of justice. With this view of the matter, we set aside the impugned order and restore the issue to the file of learned CIT(A) to dispose of the same on merits, after affording an opportunity of being heard to the assessee. We make it clear that this is the final opportunity to the assessee to get the matter disposed of the case on merits by prosecuting the appeal diligently. 7. In the result, appeal of the assessee is treated as allowed for statistical purposes. Order pronounced in the open court on this the 16 th day of February, 2023. Sd/- Sd/- (RAMA KANTA PANDA) (K. NARASIMHA CHARY) ACCOUNTANT MEMBER JUDICIAL MEMBER Hyderabad, Dated: 16/02/2023 TNMM ITA No. 89/Hyd/2023 Page 4 of 4 Copy forwarded to: 1. Smt. Noorunnisa Begum, C/o. Flat No. 610, 6 th Floor, Babukhan Estate, Basheerbagh, Hyderabad. 2. Income Tax Officer, Ward-7(1), Hyderabad. 3. CIT(A), NFAC-Delhi. 4. DR, ITAT, Hyderabad. 5. GUARD FILE TRUE COPY ASSISTANT REGISTRAR ITAT, HYDERABAD