KANHU CHARAN COUDA,NAYAGARH V. ITO, KHURDA WARD, KHURDA

ITA 481/CTK/2024

AI Insights

The case involves an appeal by Kanhu Charan Gouda against the order of the CIT(A), NFAC, Delhi, concerning the assessment year 2017-2018. The primary contention was the ex parte order passed by the CIT(A) without proper communication of notices and sufficient opportunity to be heard, which the assessee argued violated the principles of natural justice. Additionally, the assessee contested the addition made under section 69A of the Income Tax Act, claiming that the credits in the bank account were public money and not his personal funds. The Tribunal found merit in the assessee's arguments regarding the lack of representation and the nature of the bank deposits, leading to the decision to remand the matter back to the Assessing Officer for a fresh assessment.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 25970 (ITAT-CUTTACK)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-01-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB
• Assessment Year: 2017-2018
• Laws Referred To: Income Tax Act
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: S.C.MOHANTY
• Assessee Lawyers: K.K.BAL
• Keywords: Set aside; Principle of natural justice
• Section: 69A

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL, BEFORE MANISH AGARWAL Kanhu Charan Rohibanka, Odagaon, Nayagarh, Khordha-7520 PAN/GIR No. (Appellant Per Bench This is an CIT(A), NFAC, Delhi dated NFAC/201617/10307 2. Shri K.K.Bal, Sr. DR appeared for the revenue. 3. The assessee has raised following grounds of appeal: IN THE INCOME TAX APPELLATE TRIBUNAL, CUTTACK BENCH, CUTTACK BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER AND MANISH AGARWAL, ACCOUNTANT MEMBER ITA No.481/CTK/2024 Assessment Year : 2017-2018 Kanhu Charan Gouda Odagaon, Nayagarh, 752090 Vs. ITO,Khordha No.AUBPG 5312 Q (Appellant) .. ( Respondent Assessee by : Shri K. K. Bal, Adv Revenue by : Shri S.C.Mohanty, Sr DR Date of Hearing : 23/01/20 Date of Pronouncement : 23/01/20 O R D E R This is an appeal filed by the assessee against the order of the ld CIT(A), NFAC, Delhi dated 26.4.2024 in Appeal No. NFAC/201617/10307110 for the assessment year 2017-2018. K.K.Bal, ld AR appeared for the assessee and Shri DR appeared for the revenue. The assessee has raised following grounds of appeal: P a g e 1 | 4 IN THE INCOME TAX APPELLATE TRIBUNAL, MEMBER , ACCOUNTANT MEMBER Respondent) : Shri S.C.Mohanty, Sr DR 2025 025 appeal filed by the assessee against the order of the ld in Appeal No. 2018. the assessee and Shri S.C.Mohanty, The assessee has raised following grounds of appeal: ITA No.481/CTK/2024 Assessment Year : 2017-2018 P a g e 2 | 4 1. For that the order of the forum below is arbitrary, illegal and unjust both in fact and law, hence liable to be quashed. 2. For that Ld, CIT(A) erred in passing order by violating the provisions of sec 250(4) & (5) of the IT Act and without adjudicating the grounds taken. Therefore the impugned order is arbitrary and illegal and deserves to quashed and set aside. 3. For that the Ld. CIT(A) erred in passing an exparte order for prosecution without proper communication of notices and without providing sufficient opportunity being heard. Therefore theorder passed by violating the principles of natural justice id not sustainable and deserves to be quashed and set aside. 4. For that the erred in making addition of the 69A of the Income tax act the entire credits of public money in the Bank account bearing No-2790002100001224 in Punjab National Bank at Rs. 1,36,14,133/- used as a Banking correspondence Account. Since the credits in the Bank account are public money and not the money of the Assessee the additions is not sustainable and deserves to be deleted. 5. For that Ld. A.O erred in treating the cash deposits received for and on behalf of the bank and credits by Bank by debiting the account of customers who have withdrawn through Micro ATM provide to the Assesse as unexplained money without understanding the fact in proper prospective. Therefore the addition is non application of mind and deserves to be deleted.” 4. The appeal is barred by limitation by 144 days. The assessee has filed condonation petition 21.11.2024 supported by affidavit, stating the reason that although the appealorder was uploaded by NFAC in the portal on 26.4.2024 but same came to the knowledge of the assessee on 10.10.2024. In this regard, it is stated that since the assessee was unware about assessing the portal and totally dependent on his counsel, he could not know the status f the appellate proceedings. Further, due to the illness of the father of the assessee, he was staying at Bhubaneswar, which is more than 150 kms from his village. It is stated that as soon as the ITA No.481/CTK/2024 Assessment Year : 2017-2018 P a g e 3 | 4 assessee came to know about the appellate order, he immediately contacted his counsel to file the appeal before the Tribunal, for which, there was delay of 144 days. It is prayed that the delay in filing the appeal be condoned and appeal be decided on merits. 5. After considering the petition and hearing the parties, we found that the explanation furnished by the assessee has not been found to be false. We, accordingly, condone the delay of 144 days and admit the appeal for adjudication. 6. We have gone through the orders of the Assessing Officer and ld CIT(A). We observe that there was no representation from the side of the assessee before the Assessing Officer, which resulted into an exparte assessment order passed u/s 144 of the Act. It is submitted by ld AR that the assessee is a Bank Mitra and collect the money from the customers on behalf of the bank and deposit the same in the bank account for onward transmission to the Bank. The Assessing Officer without considering the same has made addition of total deposit in the bank as unexplained money of the assessee. It is stated by ld AR that if the matter is restored to the file of the Assessing Officer, the assessee will produce all the relevant documents/evidences regarding cash receipt from the customers on behalf of the bank. In view of above, as the assessment order has been passed u/s.144 of the Act, in the interest of justice, the issues in this appeal are restored to the file of the Assessing Officer for making the assessment ITA No.481/CTK/2024 Assessment Year : 2017-2018 P a g e 4 | 4 denovo after providing reasonable opportunity of hearing to the assessee. The liberty is granted to produce all such evidences as are required for adjudication of the issue afresh by the Assessing Officer. 7. In the result, appeal of the assessee stands partly allowed for statistical purposes. Order dictated and pronounced in the open court on 23/01/2025. Sd/- sd/- (Manish Agarwal) (George Mathan) ACCOUNTANT MEMBER JUDICIAL MEMBER Cuttack; Dated 23/01/2025 B.K.Parida, SPS (OS) Copy of the Order forwarded to : By order Sr.Pvt.Secretary ITAT, Cuttack 1. The Appellant : Kanhu Charan Gouda Rohibanka, Odagaon, Nayagarh, Khordha-752090 2. The Respondent: ITO,Khordha 3. The CIT(A)- NFAC, Delhi 4. Pr.CIT, 5. DR, ITAT, 6. Guard file. //True Copy// "