MAMMI CHAKKUTTIPARAMBIL,TIRUR V. ITO, WARD -1, TIRUR

ITA 832/COCH/2024

AI Insights

The case involves Mammi Chakkuttiparambil, the appellant, who was assessed for unexplained cash deposits amounting to Rs. 13,50,000 in the assessment year 2010-11. The Income Tax Officer (ITO) issued a notice under section 148 of the Income Tax Act, 1961, after suspecting that the appellant's income had escaped assessment. The appellant filed a return declaring an income of Rs. 2,00,000, which was contested by the ITO, leading to an assessment of Rs. 15,67,670. The appellant's appeal to the CIT(A) was unsuccessful as the CIT(A) confirmed the ITO's additions without considering the appellant's explanation that the deposits were from earlier cash withdrawals. The Tribunal found that the CIT(A) had not adequately addressed this explanation and thus remanded the case for a fresh evaluation.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 23440 (ITAT-COCHIN)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-02-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2010-2011
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: LEENA LAL
• Section: 147; 148; 143(3); 139(1)

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH BEFORE SHRI INTURI RAMA RAO, AM ITA No. 832/Coch/2024 Assessment Year: 2010-11 Mammi Chakkuttiparambil .......... Appellant Chakkutty Parambil House Alathiyur P.O., Tirur 676102 [PAN: BGHPC9062L] vs. The Income Tax Officer .......... Respondent Ward - 1, Tirur Appellant by: ------- None ------- Respondent by: Smt. Leena Lal, Sr. D.R. Date of Hearing: 04.02.2025 Date of Pronouncement: 10.02.2025 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 23.04.2024 for Assessment Year (AY) 2010-11. 2. Brief facts of the case are that the appellant is an individual deriving income from small real estate transactions. The regular return of income for AY 2010-11 was not filed by the appellant u/s. 139(1) of the Act. However, based on the information that the appellant made large cash transactions to the tune of Rs. 13,50,000/-, AO formed an opinion that income escaped assessment to tax. Accordingly, a notice u/s. 148 of 2 ITA No. 832/Coch/2024 Mammi Chakkuttiparambil the Income Tax Act, 1961 (the Act) was issued on 31.03.2017. In response to the said notice appellant filed return of income on 27.04.2017 declaring income of Rs. 2,00,000/-. Against the said return of income, the assessment was completed by the Income Tax Officer, Ward-1, Tirur (hereinafter called \"the AO\")vide order dated 22.10.2018 passed u/s. 147 r.w.s. 143(3) of the Act at a total income of Rs. 15,67,670/-. While doing so, the AO made addition of Rs. 13,50,000/- being cash deposits made on various dates in Tirur Urban Co-operative Bank Ltd. Tirur. 3. Being aggrieved, an appeal was filed before the CIT(A) contending that the said cash deposits were made out of earlier cash withdrawals of Rs. 4,00,000/- on 15.04.2009 and Rs. 3,00,000/- on 20.11.2009. The CIT(A), without considering the explanation, merely confirmed the action of the AO. 4. Being aggrieved, the appellant is in appeal before us in the present appeal. 5. When the appeal was called 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. The issue in the present appeal relates to the addition of unexplained cash deposit made in the bank account. No doubt, during the course of assessment proceedings the appellant had not offered any explanation regarding the source of cash deposit. However, during the course proceedings before the CIT(A), the appellant took a specific plea that the cash deposits were made out of the earlier withdrawals of money 3 ITA No. 832/Coch/2024 Mammi Chakkuttiparambil on 15.04.2009 of Rs. 4,00,000/- and on 20.11.2009 or Rs. 3,00,000/-. The CIT(A) neither adverted to this ground of appeal nor discussed it in the order passed by him. Therefore, in the circumstances, the matter is restored to the file of the CIT(A) for de novo adjudication in accordance with law after affording reasonable opportunity of hearing to the appellant. 7. In the result, the appeal filed by the assessee stands allowed for statistical purposes. 8. Order pronounced in the open court on 10th February, 2025. Sd/- (INTURI RAMA RAO) ACCOUNTANT MEMBER Cochin, Dated: 10th February, 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 "