ITO., WARD-11(1), HYDERABAD V. SURESH SAMINENI, HYDERABAD

ITA 794/HYD/2024

AI Insights

The case involves an appeal by the Income Tax Officer against the order of the learned CIT (A)-NFAC Delhi, concerning the assessment year 2017-18. The Revenue appealed due to the assessee's failure to explain substantial cash deposits made during the demonetization period. The Assessing Officer initially completed the assessment ex-parte, estimating the assessee's income based on these deposits. The CIT (A) also upheld this estimation but did not consider the deposits as business turnover. The Tribunal found that the assessee had not been given adequate opportunity to explain the credits in his bank accounts and thus remanded the case back to the CIT (A) for a fresh assessment.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 26919 (ITAT-HYDERABAD)
• Duration Of Justice: 1 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-10-2024
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: DB-A
• Next Hearing Date: 15-10-2024
• Assessment Year: 2017-2018
• Appeal Filed On: 21-08-2024
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: AASHISH KUMAR SHUKLA
• Keywords: Set aside
• Section: 144; 142(1); 69A

Judgement Text

" ITA No 794 of 2024 Suresh Samineni Page 1 of 4 आयकर अपीलȣय अͬधकरण, हैदराबाद पीठ IN THE INCOME TAX APPELLATE TRIBUNAL Hyderabad ‘A‘ Bench, Hyderabad Before Shri Laliet Kumar, Judicial Member And Shri Manjunatha, G. Accountant Member आ.अपी.सं /ITA No.794/Hyd/2024 (िनधाŊरण वषŊ/Assessment Year: 2017-18) Income Tax Officer Ward 11(1) Hyderabad Vs. Shri Suresh Samineni Hyderabad PAN:AZHPS3014Q (Appellant) (Respondent) राज̾ व Ȫारा/Revenue by: Shri Aashish Kumar Shukla, DR िनधाŊįरती Ȫारा/Assessee by: N O N E सुनवाई की तारीख/Date of hearing: 15/10/2024 घोषणा की तारीख/Pronouncement: 15/10/2024 आदेश/ORDER Per Manjunatha, G. A.M This appeal filed by the Revenue is directed against the order dated 21/06/2024 of the learned CIT (A)-NFAC Delhi, relating to A.Y.2017-18. 2. There is a delay of one day in filing of this appeal by the Revenue. The learned DR explained the reasons for the delay of 1 day in filing of this appeal before the Tribunal and the delay of 1 day is condoned and the appeal is hereby admitted for adjudication. ITA No 794 of 2024 Suresh Samineni Page 2 of 4 3. The brief facts of the case are that, as per the information available in AIMS (Actionable Information Monitoring System) in ITBA, the assessee has made cash deposits of Rs.1,02,91,000/- during the demonetization period in his bank account held with Adarsh Urban Cooperative Bank, Shapurnagar, IDA, Jeedimetla, Hyderabad, ICICI Bank Annasalai, Chennai and ICICI Bank,at Shapurnagar, Hyderabad. The assessee has not filed his return of income for the A.Y 2017-18 explaining the source for these credits. Notice u/s 142(1) of the I.T. Act, 1961 dated 24/11/2017 was issued to the assessee to furnish the return of income but there is no compliance from the assessee. In view of non-compliance to the notice, the Assessing Officer has completed the assessment ex-parte u/s 144 of the I.T. Act, 1961 on 18/12/20189 and determined the total income at Rs.2,98,48,484/- by estimating 8% net profit on total credits in bank account amounting to Rs.24,44,18,551/- (25,47,09,551- 1,02,91,000) and also addition of Rs.1,02,91,000/- towards cash deposits in SBNs during the demonetization period as unexplained money u/s 69A of the I.T. Act, 1961. 4. The assessee carried the matter in appeal before the learned CIT (A). The learned CIT (A) listed the case for hearing on number of occasions but the assessee has chosen not to furnish any reply to the above notices. Therefore, the appeal filed by the assessee has been disposed off after considering the facts on record and estimated 5% net profit on total credits in bank account amounting to Rs.25,47,09,551/- including cash deposits of Rs.1,02,91,000/- made during the demonetization period. ITA No 794 of 2024 Suresh Samineni Page 3 of 4 5. Aggrieved by the order of the learned CIT (A), the Revenue is in appeal before the Tribunal. 6. None appeared on behalf of the assessee. We have heard the learned DR, perused the material available on record and gone through the orders of the authorities below. Admittedly, there is no response by the assessee before the Assessing Officer. The assessee neither filed return of income nor explained the source for cash deposits into bank accounts. Before the learned CIT (A), the assessee chosen not to furnish any replies to the various notices issued by the first appellate authority. In other words, the proceedings before the Assessing Officer and the learned CIT (A) are ex-parte. The assessee did not get any opportunity to explain the credits found in bank accounts including cash deposits during the demonetization period. Although, the Assessing Officer and the learned CIT (A) applied different rates for estimating income from business, but the learned CIT (A) has not given any valid reason for not considering cash deposits during demonetization period as business turnover of the assessee. Since the assessee has not explained with relevant evidences and also the authorities have not considered the case in right perspective of law, in our considered view, the issue needs to go back to the file of the learned CIT (A) for fresh examination on facts. Thus, we set aside the matter to the file of the learned CIT (A) and restore the issue back to the file of the learned CIT (A) for fresh consideration. The learned CIT (A) is ITA No 794 of 2024 Suresh Samineni Page 4 of 4 directed to reconsider the issue after providing one more opportunity of hearing to the assessee. 7. In the result, appeal filed by the Revenue is allowed for statistical purposes. Order pronounced in the Open Court on 15th October, 2024. Sd/- Sd/- (LALIET KUMAR) JUDICIAL MEMBER (MANJUNATHA, G.) ACCOUNTANT MEMBER Hyderabad, dated 15th October, 2024 Vinodan/sps Copy to: S.No Addresses 1 Income Tax Officer Ward 11(1) Room No,.507, 5th Floor, Signature Towers, Kondapur, Hyderabad 500084 2 Shri Suresh Samineni, Shop No.7 & 8, APIIC Shopping Complex, Shapurnagar, Jeedimetla, Hyderabad 500055. 3 Pr. CIT – Hyderabad 4 DR, ITAT Hyderabad Benches 5 Guard File By Order "