M/S OM SAI MEDICAL AGENCY,BHAGALPUR V. CIT, BHAGALPUR

ITA 678/PAT/2024

AI Insights

The case involves Om Sai Medical Agency, which appealed against the order of the CIT(A) that confirmed the addition of Rs.1,02,22,445 as unexplained cash deposit under section 69A of the Income Tax Act, 1961. The assessee faced procedural challenges, including non-receipt of notices, which led to an ex parte decision by the CIT(A). The ITAT, considering the circumstances and the principles of natural justice, decided to remand the case back to the CIT(A) for a fresh hearing.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 360880 (ITAT-PATNA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-05-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Assessment Year: 2018-2019
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: ASHWANI KR. SINGAL
• Keywords: Condonation of delay; Set aside

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL PATNA BENCH PATNA VIRTUAL HEARING AT KOLKATA BEFORE SHRI DUVVURU RL REDDY, VICE PRESIDENT AND SHRI SANJAY AWASTHI, ACCOUNTANT MEMBER ITA No. 678/PAT/2024 Assessment Year: 2018-19 Om Sai Medical Agency Shakuntala Complex, M.P.D. road, Bhagalpur- 812002. (PAN: AADFO8684R) Vs. Assessment Unit, Income Tax Department, NFAC (Appellant) (Respondent) Present for: Appellant by : N o n e Respondent by : Shri Ashwani Kr. Singal, JCIT Date of Hearing : 05.05.2025 Date of Pronouncement : 21.05.2025 O R D E R Per Sanjay Awasthi, Accountant Member : This appeal arises from the order passed u/s. 250 of the Income Tax Act, 1961 (hereinafter referred to as the “Act”) dated 21.08.2024 passed by Ld. CIT(A), NFAC, Delhi. 2. In this case there is a delay of 38 days. An application has been filed requesting condonation. Since the reasons given are extensive, we merely mention in brief that the business of the assessee had seized and thus there was no proper attention to tax matters and hence, notices could not be responded to promptly. Considering the reasons given on the condonation of delay petition, we condone the delay and admit the appeal for adjudication. 2 ITA No. 678/Pat/2024 Om Sai Medical Agency, AY: 2018-19, 3. In this case, the Assessing Officer has recorded at pages 1 and 2 of his order that several notices issued to the assessee have only resulted in partial response, at best. Thereafter, the Assessing Officer added an amount of Rs.1,02,22,445/- representing cash deposit with UCO Bank Bhagalpur, which was treated as unexplained and added u/s. 69A of the Act. 4. Aggrieved with this action, the assessee approached the Ld. CIT(A) where it is seen that as per detailed factual recording on page 4 of the impugned order, that five notices sent to him for fixing the dates of hearing were not responded to. On the last date of hearing none appeared on behalf of the assessee but it was decided to proceed ahead with the appeal with the help of Ld. DR. 5. The Ld. DR supported both the orders of the lower authorities. 6. Aggrieved with this action, the assessee has approached the ITAT and as per ground no. 3 it has been averred that the notices calling for details were never served on the assessee. Before us, the ld. AR pleaded for an opportunity to present the facts before the Ld. CIT(A) and requested that the matter may be remanded back to him. 7. The ld. DR, on the other hand, supported the impugned order. 8. We have carefully considered the submission of Ld. DR and also gone through the records. We find that the order passed by the Ld. CIT(A) is an ex parte order and we feel that in the interest of substantive justice, the assessee deserves another chance to present the facts before the Ld. CIT(A). To this extent, we set aside the impugned order and remand the same to the file of the Ld. CIT(A) for fresh adjudication. The assessee would do well to avail the opportunity to be provided by the office of the Ld. CIT(A) for hearing in the matter. 3 ITA No. 678/Pat/2024 Om Sai Medical Agency, AY: 2018-19, 9. In the result, the appeal of the assessee is allowed for statistical purposes. Order is pronounced on 21st May, 2025. Sd/- Sd/- (Duvvuru RL Reddy) (Sanjay Awasthi) Vice President Accountant Member Dated: 21st May, 2025 JD, Sr. P.S. Copy to: 1. The Appellant: Om Sai Medical Agency 2. The Respondent. Assessment Unit, Income Tax Department 3. CIT (A) 4. CIT 5. DR, ITAT, Patna Bench, Patna 6. Guard file. True Copy By Order Assistant Registrar ITAT, Kolkata Benches, Kolkata "