Tarun Sharma, Gwalior V. ITO-1(2), Gwalior

ITA 90/AGR/2021

AI Insights

The case involves Tarun Sharma, a sugar dealer, who appealed against the order of the CIT (A)/National Faceless Appeal Centre (NFAC) which confirmed an addition of Rs. 9,01,578 to his income for the assessment year 2017-18. The addition was initially made by the Income Tax Officer (ITO), Ward 1(2), Gwalior, under section 144 of the Income-tax Act, 1961, due to unexplained cash credits amounting to Rs. 3,70,800 during the demonetization period. The CIT (A) upheld this addition, noting the assessee's failure to respond to notices. The tribunal, however, remanded the case back to the CIT (A) due to the procedural error of not providing a proper hearing opportunity to the assessee.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 113598 (ITAT-AGRA)
• Duration Of Justice: 2 year(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-10-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 11-10-2023
• Assessment Year: 2017-2018
• Appeal Filed On: 28-09-2021
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 144; 69A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL (AGRA BENCH ‘SMC’ : NEW DELHI) SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER and SHRI ANUBHAV SHARMA, JUDICIAL MEMBER (THROUGH VIDEO CONFERENCE) ITA No.90/AGR/2021 (ASSESSMENT YEAR : 2017-18) Tarun Sharma, vs. CIT (A), NFAC, C/o Atul Kumar Garg & Associates, Delhi. 1/12, City Centre, Site No.1, Gwalior – 474 001 (Madhya Pradesh). (PAN : BVAPS9772B) (APPELLANT) (RESPONDENT) ASSESSEE BY : None REVENUE BY : Shri Shailendra Srivastava, Sr. DR Date of Hearing : 12.10.2023 Date of Order : 17.10.2023 ORDER PER SHAMIM YAHYA, ACCOUNTANT MEMBER : This appeal filed by the assessee is directed against the order of ld. CIT (Appeals)/ National Faceless Appeal Centre (NFAC) dated 30.07.2021 pertaining to assessment year 2017-18. 2. Grounds of appeal taken by the assessee read as under :- “a The National Faceless Appeal Centre (NFAC), Delhi has grossly erred in law and on the facts and Circumstances of the case in confirming the addition made by ITO, Ward 1(2), Gwalior and accordingly the appellant denies its liability to be assessed at an income of Rs.9,01,578/ - (Rupees Nine lac one thousand five hundred seventy eight ITA No.90/AGR./2021 2 only) and denies its liability to pay taxes and interest demanded thereon as per the order dated 30/07/202l. b That the National Faceless Appeal Center has erred in confirming the additions made u/s 69A for receipts that were offered to tax under the head business profession. c That the National Faceless Appeal Center has erred in passing the order without giving a proper opportunity of being heard by scheduling the date of hearing during the time when the Income Tax Portal was not working.” 3. In this case, AO completed the assessment under section 144 of the Income-tax Act, 1961 (for short 'the Act') by assessing the total income at Rs.9,01,578/- thereby raising the tax demand of Rs.5,16,004/-. 4. Assessee appealed before the ld. CIT (A). Before the ld. CIT (A), assessee submitted as under :- “Assessee is a sugar dealer doing wholesale business. Assessee has file his return of income vide acknowledgement no 725170470280719 dated 28.07.2019 which was not considered by the learned AO. The learned AO has wrongly made an addition of Rs 370800.00 as an unexplained cash credits under section 69A during demonetization period without considering fact that it is wholly and fully against business transactions of assessee.” 5. Ld. CIT (A) considered the above. He noted that AO has made addition of abnormal increase in the cash deposits during the demonetization period i.e. Rs.3,70,800/- treating it as unexplained cash credits. He found from the AO’s order that assessee has failed to respond to various notices issued including the final notice. Hence, he proceeded to confirm the order of AO. ITA No.90/AGR./2021 3 6. Against this order, assessee is in appeal before us. None appeared on behalf of the assessee. We have heard ld. DR for the Revenue and perused the records. 7. Upon careful consideration, we note that assessee has pleaded that assessee has not been provided opportunity to present the case. In fact, it is mentioned in the grounds of appeal that National Faceless Appeal Centre (NFAC) has erred in passing the order without giving proper opportunity of being heard by scheduling the date of hearing during the time when the Income Tax Portal was not working. In our considered view, the interest of justice would be served if the issue is remanded to the file of ld. CIT (A). Ld. CIT (A) shall provide an opportunity of being heard to the assessee and thereafter decide the matter as per law. 7. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open court on this 17 th day of October, 2023. Sd/- Sd/- (ANUBHAV SHARMA) (SHAMIM YAHYA) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated the 17 th day of October, 2023 TS ITA No.90/AGR./2021 4 Copy forwarded to: 1.Appellant 2.Respondent 3.CIT 4.CIT(A) 5.CIT(ITAT), New Delhi. AR, ITAT NEW DELHI.