KANYAKUMARI HABITAT FOR HUMANITY,KANYAKUMARI V. ITO EXEMPTIONS WARD, TIRUNELVELI

ITA 3328/CHNY/2024

AI Insights

The case involves Kanyakumari Habitat for Humanity, the appellant, contesting an order from the Commissioner of Income Tax (Appeals), which confirmed the addition made under section 69A of the Income Tax Act by the Assessing Officer. The dispute centered on cash deposits amounting to \\u20b965,78,098, which the assessee claimed were only \\u20b934,34,674 based on their bank records. The Assessing Officer treated the unexplained portion as an unexplained cash credit under section 69A due to lack of satisfactory explanation or documentary evidence from the assessee. The CIT(A) dismissed the appeal for want of prosecution as the assessee failed to respond to notices. The Tribunal, considering the circumstances presented by the assessee's advocate, decided to remand the case for a thorough examination.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 107402 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-02-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: D
• Assessment Year: 2018-2019
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: A. SASIKUMAR
• Assessee Lawyers: GIRISH KUMAR
• Keywords: Unexplained cash credit
• Section: 147; 148; 142(1); 143(2); 69A

Judgement Text

"आयकर अपीलीय अिधकरण, ’डी’ Ɋायपीठ, चेɄई IN THE INCOME-TAX APPELLATE TRIBUNAL ‘D’ BENCH, CHENNAI ŵी एस.एस. िवʷनेũ रिव, Ɋाियक सद˟ एवं ŵी जगदीश, लेखा सद˟ क े समƗ । Before Shri S.S. Viswanethra Ravi, Judicial Member & Shri Jagadish, Accountant Member आयकर अपील सं./I.T.A. No.3328/Chny/2024 िनधाŊरण वषŊ/Assessment Year: 2018-19 Kanyakumari Habitat for Humanity, 72, Jacob Street Nesamany Nagar, Nagerkoil, Kanyakumari 629 001. [PAN:AACTK1063D] Vs. The Income Tax Officer, Exemptions Ward, Tirunelveli. (अपीलाथŎ/Appellant) (ŮȑथŎ/Respondent) अपीलाथŎ की ओर से / Appellant by : Shri Girish Kumar, Advocate ŮȑथŎ की ओर से/Respondent by : Shri A. Sasikumar, CIT सुनवाई की तारीख/ Date of hearing : 24.02.2025 घोषणा की तारीख /Date of Pronouncement : 28.02.2025 आदेश /O R D E R PER S.S. VISWANETHRA RAVI, JUDICIAL MEMBER: This appeal filed by the assessee is directed against the order dated 13.11.2024 passed by the ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi for the assessment year 2018-19. 2. The assessee raised 14 grounds of appeal amongst which, the only issue emanates for our consideration as to whether the ld. CIT(A) is justified in confirming the addition made under section 69A of the Income I.T.A. No.3328/Chny/24 2 Tax Act, 1961 [“Act” in short] made by the Assessing Officer in the facts and circumstances of the case. 3. The Assessing Officer observed that the assessee made cash deposits amounting to ₹.65,78,098/- and no return of income filed. A notice under section 148 of the Act issued on the assessee and in response to which, the assessee filed return of income showing NIL income. Against the statutory notices under section 143(2) and 142(1) of the Act, in its written submission, the assessee denied of making cash deposits of ₹.65,78,098/- in its bank account and submitted that on the basis of bank books, the assessee made cash deposits of ₹.34,34,674/- and furnished copy of bank account statement. However, the assessee fails to explain the source of above cash deposits along with documentary evidence. Since there was no reply against show-cause notice issued, the Assessing Officer treated the cash deposits of ₹.34,34,674/- as unexplained cash credit under section 69A of the Act. On appeal, since there was no response against notices issued, the ld. CIT(A) dismissed the appeal for want of prosecution. 4. The ld. AR Shri Girish Kumar submits that non appearance before the ld. CIT(A) is neither wilful not wanton. He further submits that due to the circumstances beyond his control, the assessee could not file I.T.A. No.3328/Chny/24 3 explanation/documentary evidence in support of his claim. The ld. AR prayed to afford an opportunity to the assessee as the assessee is ready to prosecute her case without fail. 5. The ld. DR Shri A. Sasikumar, CIT opposed the same and drew our attention to para 5 of the impugned order and argues that the ld. CIT(A) has provided adequate opportunities to make submissions in support of the appeal. 6. Heard both the parties and perused the material on record. We note that the assessment was completed under section 147 r.w.s. 144B of the Act dated 17.03.2023. On perusal of the assessment order as well as impugned order, we note that there was no assistance from the assessee to the show-cause notice issued by the Assessing Officer as well as ld. CIT(A). We also note that the Assessing Officer issued the show-cause notice dated 10.03.2023 requesting the assessee to furnish documentary evidence for cash deposits as stated at page 2 of the assessment order. Taking into consideration of the submissions of the ld. AR and the ld. DR and in the interest of justice, we deem it proper to remand the matter to the file of the Assessing Officer to afford one more opportunity to the assessee and decide the matter in accordance with law. The assessee is directed to furnish complete details to substantiate its case before the I.T.A. No.3328/Chny/24 4 Assessing Officer. Thus, grounds raised by the assessee are allowed for statistical purposes. 7. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on 28th February, 2025 at Chennai. Sd/- Sd/- (JAGADISH) ACCOUNTANT MEMBER (S.S. VISWANETHRA RAVI) JUDICIAL MEMBER Chennai, Dated, 28.02.2025 Vm/- आदेश की Ůितिलिप अŤेिषत/Copy to: 1. अपीलाथŎ/Appellant, 2.ŮȑथŎ/ Respondent, 3. आयकर आयुƅ/CIT, Chennai/Madurai/Coimbatore/Salem 4. िवभागीय Ůितिनिध/DR & 5. गाडŊ फाईल/GF. "