KAJAMOIDEEN MOHAMMED HASHIM,PALAKKAD V. ITO, WARD-1, PALAKKAD

ITA 864/COCH/2024

AI Insights

The case involves Kajamoideen Mohammed Hashim, an individual engaged in the business of advertisement, who appealed against the order of the National Faceless Appeal Centre (NFAC), Delhi, which confirmed the assessment made by the Income Tax Officer, Ward -1, Palakkad. The assessment for the year 2014-15 included a significant addition of Rs. 53,30,000, treating it as unexplained money, which the assessee claimed was a gift from his brother. The CIT(A) upheld the AO's decision without adequately addressing the appellant's arguments or the evidence provided. The ITAT found procedural improprieties in the handling of the appeal by the CIT(A) and decided to remand the case for a comprehensive re-examination.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 474701 (ITAT-COCHIN)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-03-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB
• Assessment Year: 2014-2015
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: LEENA LAL
• Keywords: Condonation of delay; Gift
• Section: 143(3)

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH BEFORE SHRI INTURI RAMA RAO, AM ITA No. 864/Coch/2024 Assessment Year: 2014-15 Kajamoideen Mohammed Hashim .......... Appellant 8/351 Kadeeja Manzil, Kadamkode Palakkad 678551 [PAN: AUQPM1241F] vs. The Income Tax Officer, Ward - 1, Palakkad .......... Respondent Appellant by: ------- None ------- Respondent by: Smt. Leena Lal, Sr. D.R. Date of Hearing: 12.03.2025 Date of Pronouncement: 27.03.2025 O R D E R This appeal filed by the assessee is directed against the order of the National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] dated 27.07.2024 for Assessment Year (AY) 2014-15. 2. Brief facts of the case are that the assessee is an individual engaged in the business of advertisement. The return of income for AY 2014-15 was filed on 26.02.2015 declaring income of Rs. 5,15,110/-. Against the said return of income, the assessment was completed by the Income Tax Officer, Ward -1, Palakkad (hereinafter called \"the AO\") vide order dated 23.12.2016 passed u/s. 143(3) of the Income Tax Act, 2 ITA No. 864/Coch/2024 Kajamoideen Mohammed Hashim 1961 (the Act) at a total income of Rs. 57,45,110/-. While doing so, the AO made addition of Rs. 53,30,000/- treating the cash deposit as unexplained money of the assessee, rejecting the explanation that the cash deposits were made out of the gift received from his brother, Shri Thanseer Kaja. 3. Being aggrieved, an appeal was filed before the CIT(A), who vide the impugned order confirmed the action of the AO. 4. Being aggrieved, the appellant is in appeal before the Tribunal in the present appeal. 5. When the appeal was called on nobody appeared on behalf of the assessee despite due service of notice of hearing. Therefore, we proceeded to dispose of the appeal after hearing the learned Sr. DR. 6. There is a delay of 14 days in filing the appeal. The appellant had filed a petition seeking condonation of delay stating that the delay had occurred on account of the technical glitch in the ITAT portal. In the absence of any evidence to the contrary, the delay is condoned and the appeal is admitted for adjudication. 7. On perusal of the order of the CIT(A), I find that the CIT(A) had dismissed the appeal filed by the assessee without adverting to the grounds of appeal and the statement of facts filed before him. In the grounds of appeal it is pleaded that provisions of section 56(2)(vii) of the Act have no application. The appellant discharged the onus by proving the identity, creditworthiness and genuineness, AO should not have rejected the explanation of the assessee merely on the basis of 3 ITA No. 864/Coch/2024 Kajamoideen Mohammed Hashim assumptions. Without adverting to facts, the CIT(A) merely dismissed the appeal on surmises and, therefore, I am of the considered opinion that interest of justice would be met, if the matter is restored for de novo disposal of the appeal in accordance with law after affording reasonable opportunity of hearing to the appellant. 8. In the result, the appeal filed by the assessee stands partly allowed. 9. Order pronounced in the open court on 27th March, 2025. Sd/- (INTURI RAMA RAO) ACCOUNTANT MEMBER Cochin, Dated: 27th March, 2025 n.p. Copy to: 1. The Appellant 2. The Respondent 3. The Pr. CIT concerned 4. The Sr. DR, ITAT, Cochin 5. Guard File By Order Assistant Registrar ITAT, Cochin "