JHL TRADING LIMITED LIABILITY PARTNERSHIP,KOCHI V. DCIT, CORPORATE CIR 1(1) , KOCHI

ITA 17/COCH/2025

AI Insights

The case involves JHL Trading Limited Liability Partnership, which faced scrutiny from the Income Tax Department due to a substantial cash deposit of Rs.5,78,00,745 in its bank account, which was considered unexplained money. The AO reopened the case under section 147 of the Income Tax Act and added the entire amount as unexplained money to the income of the assessee due to non-compliance with notices. The CIT(A) upheld the AO's decision after the assessee failed to comply with notices issued through the ITBA Portal. The assessee appealed to the Tribunal, challenging the jurisdiction of the AO and the merits of the case. The Tribunal found that the AO had jurisdiction and decided that the matter required fresh consideration due to the new evidence presented.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 396423 (ITAT-COCHIN)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-05-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2018-2019
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SUNDARASAN S
• Assessee Lawyers: JOB ABRAHAM; AJAY V.ANAND; ADVOCATES
• Keywords: Opportunity of being heard; Additional evidence
• Section: 148

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH, COCHIN Before Shri Inturi Rama Rao, Accountant Member & Shri Prakash Chand Yadav, Judicial Member ITA No.17/Coch/2025 : Asst.Year 2018-2019 JHL Trading Limited Liability Partnership, 26/69 H, Kuttoh Complex Pukkattupady Road Thrikkakara North Part Edapally North B.O. Ernakulam – 682 024. PAN : AAKFJ4568Q. v. The Dy.Commissioner of Income-tax, Corporate Cir.1(1) Kochi. (Appellant) (Respondent) Appellant by : Sri.Job Abraham & Sri.Ajay V.Anand, Advocates Respondent by : Sri.Sundarasan S, CIT-DR Date of Hearing : 22.05.2025. Date of Pronouncement : 26.05.2025 O R D E R Per Prakash Chand Yadav, JM : The present appeal of the assessee is arising from the order of the National Faceless Appeal Centre / learned Commissioner of Income-tax (Appeals) [“CIT(A)” for short] dated 05.11.2024, having DIN & Order No.ITBA/NFAC/S/250/2024- 25/1070108855(1) and relates to the assessment year 2018- 2019. 2. The brief facts of the case as coming out from the orders of the authorities below are that the assessee is a limited liability partnership firm and has deposited an amount of ITA No.17/Coch/2025. JHL Trading Limited Liability Partnership. 2 Rs.5,78,00,745 in its bank account via cash. On the basis for this information, the case of the assessee was reopened u/s.147 of the Act, and thereafter, several notices were issued to the assessee, as evident from page 2 of the assessment order. However, no-one appeared from the side of the assessee and because of this non-compliance, the AO has added the entire cash deposits as unexplained money to the income of the assessee. It is pertinent to note here that the assessee has neither filed the return of income u/s.139(1) of the Act or in respect of the notices issued u/s.148. 3. Aggrieved with the order of the AO, the assessee preferred an appeal before the CIT(A). Office of the CIT(A) issued three notices to the assessee via ITBA Portal at the registered email id of the assessee-firm. These notices remained un-complied with and hence the CIT(A) dismissed the appeal of the assessee ex parte and affirmed the order of the AO. The CIT(A) also affirmed the jurisdiction of the AO u/s.147 r.w.s. 148 of the Act. 4. Aggrieved with the order of the CIT(A), the assessee has come up in appeal before us. At the outset, the learned Counsel for the assessee argued that the assessee has not received any notice of hearing from the office of the CIT(A), otherwise the assessee would be persuaded the matter diligently before the CIT(A). 5. The learned CIT-DR relied upon the orders of the authorities below. ITA No.17/Coch/2025. JHL Trading Limited Liability Partnership. 3 6. After considering the rival submissions, it is observed that it is a case where no return of income has been filed by the assessee but assessee has deposited cash of Rs.5,78,00,745. Before us, the assessee has filed additional evidence explaining the source of cash with an application under Rule 29 praying for admission of additional evidence. Besides this, the assessee has also raised additional grounds challenging the jurisdiction of the AO u/s.147 r.w.s. 148 of the Act. So far as the challenge to the jurisdiction of the AO by way of additional is concerned, we are of the view that since there was no return of income filed by the assessee, the AO was correct in assuming the jurisdiction over the case of the assessee. So far as the merits of the case are concerned, we are of the view that the matter requires fresh consideration at the end of the AO in the light of the voluminous evidences filed by the assessee before us. Therefore, in the interest of justice, we restore this matter to the file of the AO for examining afresh. Needless to say, the AO shall afford meaningful opportunity of being heard to the assessee. 7. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on this 26th day of May, 2025. Sd/- (Inturi Rama Rao) Sd/- (Prakash Chand Yadav) ACCOUNTANT MEMBER JUDICIAL MEMBER Cochin; Dated : 26th May, 2025. Devadas G* ITA No.17/Coch/2025. JHL Trading Limited Liability Partnership. 4 Copy to : 1. The Appellant. 2. The Respondent. 3. The CIT, Cochin. 4. The DR, ITAT, Cochin. 5. Guard File. Asst.Registrar/ITAT, Cochin "