JFA FISHERIES,GOA VELHA V. INCOME TAX OFFICER, WARD, 2(2), PANAJI

ITA 195/PAN/2024

AI Insights

The case involves JFA Fisheries, a partnership firm, appealing against the orders of the National Faceless Appeal Centre (NFAC) Delhi / CIT(A), which were passed under sections 144 and 250 of the Income Tax Act. The Assessing Officer (AO) had made additions to the assessee's income based on unsubstantiated cash deposits during the demonetization period, totaling Rs.46,83,700. The CIT(A) dismissed the appeal due to non-compliance with tax payment requirements and failure to respond to deficiency letters. The Tribunal found that the assessee was not given adequate opportunity to comply and thus remitted the case back to the CIT(A).

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 471254 (ITAT-PANAJI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-12-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2017-2018
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NAZEERA MOHAMMED.
• Keywords: Set aside; Principle of natural justice
• Section: 144; 142(1); 250

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL PANAJI BENCH PANAJI BEFORE SHRI PAVAN KUMAR GADALE, JUDICIAL MEMBER & SHRI G D PADMAHSHALI ACCOUNTANT MEMBER I T A. Nos. 195/PAN/2024 (A.Y. 2017-18 ) JFA Fisheries, H,No,894, Zaure Khursa Wado,Goa Velha, Tiswadi, North Goa-403108. Goa. Vs . ITO-Ward-1(2), Panaji, Goa-403001. . PAN .No. AAJFJ9071F (अपीलाथȸ/Appellant) (Ĥ×यथȸ/Respondent) Assessee by None(letter 27-12-24) Revenue by Ms.Nazeera Mohammed.Sr.DR सुनवाई कȧ तारȣख/Date of Hearing 30.12.2024 घोषणा कȧ तारȣख/Date of Pronouncement 31.12.2024 ORDER PER PAVAN KUMAR GADALE, JM: The appeal is filed by the assesse against the order of National Faceless Appeal Centre (NFAC) Delhi / CIT(A) passed u/sec 144 and u/sec 250 of the Act. 2. At the time of hearing, it was brought to the knowledge of the bench, that there is a delay in filing the appeal before the Hon’ble Tribunal and the assesse has filed the affidavit for condonation of delay. Whereas, the facts 2 ITA. No. 195/PAN/2024 JFA Fisheries.. mentioned in the affidavit are reasonable and the Ld. DR has no specific objections. Accordingly, we condone the delay and admit the appeal. 3. The brief facts of the case are that, the assessee is a partnership firm engaged in the business. The Assessing Officer (AO) based on the information from ITBA data, found that the assesse has made cash deposits in the bank accounts during the demonetization period and the assesse has not filed the return of income and further the notice u/sec 142(1) of the Act along with questionnaire was issued and there was no compliance. Whereas the A.O found that the assesse has made the cash deposits aggregating to Rs.46,83,700/- in the bank accounts in the F.Y.2016-17 and explanations were called to substantiate the deposits. Since, no explanations/details were filed, the AO considering the information available on record has invoked the provisions of Sec. 144 of the Act and made addition of cash deposits u/sec69A of the Act and finally assessed the total income of Rs.46,83,700/- and passed the order u/sec 144 of the Act dated 16.12.2019. 4. Aggrieved by the order, the assessee has filed an appeal before the CIT(A), whereas the CIT(A) has considered the grounds of appeal, statement of facts, findings of the AO and Form no 35 and find that the assessee has not paid the taxes and the provisions of section 249(4)(b) of the Act are attracted and has issued deficiency letters and since there was no compliance by the assesse, the CIT(A) has 3 ITA. No. 195/PAN/2024 JFA Fisheries.. dismissed the appeal as not eligible for admission. Aggrieved by the order of the CIT(A), the assessee has filed an appeal before the Hon'ble Tribunal. 5. We heard the Ld.DR submissions and perused the material on record and none appeared on behalf of the assesse. Prima-facie the CIT(A) has passed the order considering the fact that there is no compliance to deficiency letters nor appearance in spite of providing adequate opportunity of hearing. Therefore, the CIT(A) was of the opinion that the assesse is not interested and find that as per Form no 35, the assessee has not paid the taxes/advance tax and the provisions of section 249(4)(b) of the Act are attracted and the CIT(A) has issued the deficiency letters in the prescribed format on 14-12-2023 and 20-12-2023 stating the defects referred at Page 3 Para 2.4 of the order and there was no response and hence the CIT(A) has dismissed the appeal as not eligible for admission. Whereas the assesse has raised grounds of appeal challenging the addition by the A.O and there could be various reasons for non appearance/ compliance which cannot be overruled. Further, in the case, were the return of income is not filed by the assessee and the case falling under section 249(4)(b) of the Act, there is a provision, provided that, the assessee can make an application to appellate authority explaining the good and sufficient reasons for claiming the exemption. Therefore, considering the facts and principles of natural justice, we shall provide 4 ITA. No. 195/PAN/2024 JFA Fisheries.. with one more opportunity to the assessee. Accordingly, we set aside the order of the CIT(A) and remit the entire disputed issues to the file of the CIT(A) as discussed above. And, we allow the grounds of appeal of the assesse for statistical purpose. 6. In the result, the appeal filed by assessee is allowed for statistical purposes. Order pronounced in the open court on 31.12.2024. Sd/- Sd/- (GD PADMAHSHALI) (PAVAN KUMAR GADALE) ACCOUNTANT MEMBER JUDICIAL MEMBER Panaji Dated: 31/12/2024 Copy of the Order forwarded to: 1. The Appellant, 2. The Respondent 3. The CIT(A)- 4. CIT 5. DR, ITAT, 6. Guard file. //True Copy// BY ORDER, (Asstt. Registrar)ITAT, Panaji 5 ITA. No. 195/PAN/2024 JFA Fisheries.. Date Initial 1. Draft dictated on PS 2. Draft placed before author PS 3. Draft proposed & placed before the second member PS 4. Draft discussed/approved by Second Member. PS 5. Approved Draft comes to the Sr.PS/PS PS 6. Kept for pronouncement on 7. File sent to the Bench Clerk 8. Date on which file goes to the AR 9. Date on which file goes to the Head Clerk. 10. Date of dispatch of Order. 11. Dictation Pad is enclosed "