MANOJ KUMAR SONI ,BANDA V. THE INCOME TAX OFFICER, WARD- 5(4), BANDA , BANDA

ITA 187/ALLD/2024

AI Insights

The case involves Shri Manoj Kumar Soni, the appellant, who filed an appeal against the order of the Commissioner of Income Tax (Appeals) [CIT(A)] which confirmed the addition of Rs.28,00,000 as unexplained investment in a car purchase. The Assessing Officer had initially made this addition during the assessment proceedings for the year 2016-2017, due to the assessee's failure to explain the source of income for the car purchase despite multiple notices. The CIT(A) dismissed the appeal, leading to the current appeal before the Income Tax Appellate Tribunal. During the Tribunal hearing, no representative for the assessee was present, and the decision was made based on the documents and the arguments presented by the Departmental Representative.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 47034 (ITAT-ALLAHABAD)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-04-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2016-2017
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: A.K. SINGH
• Keywords: Set aside; Corroborative evidences; Unexplained investment; Non compliance
• Section: 69

Judgement Text

"I.T.A. No.187/Alld/2024 Assessment Year:2016-17 1 IN THE INCOME TAX APPELLATE TRIBUNAL ALLAHABAD BENCH, ALLAHABAD BEFORE SHRI SUBHASH MALGURIA, JUDICIAL MEMBER AND SHRI SANJAY AWASTHI, ACCOUNTANT MEMBER I.T.A. No.187/Alld/2024 Assessment Year:2017-17 Shri Manoj Kumar Soni, Kotwali Road, Muchiyana, Banda. PAN:CPUPS9516L Vs. Income Tax Officer, Ward-5(4), Banda. (Appellant) (Respondent) O R D E R PER SUBHASH MALGURIA:J.M. This appeal has been filed by the assessee for assessment year 2016- 2017 against impugned appellate order dated 19/11/2024 (DIN & Order No.ITBA/NFAC/S/250/2024-25/1070463232(1) of Commissioner of Income Tax (Appeals) [“CIT(A)” for short]. Appellant by None Respondent by Shri A. K. Singh, Sr. D.R. Date of hearing 07/04/2025 Date of pronouncement 07/04/2025 I.T.A. No.187/Alld/2024 Assessment Year:2016-17 2 2. The facts of the case, in brief, are that the assessee is an individual and filed his return of income showing total income at Rs.2,80,120/-. The assessee has shown STCG of Rs.2,80,000/-. During the assessment proceedings, the Assessing Officer found that the assessee had purchased a car amounting to Rs.28,00,000/- which remained unexplained during the enquiry proceedings. The Assessing Officer issued various notices to the assessee to explain the source of income out of which the purchase of car was made. In view of non compliance by the assessee to statutory notices and show cause notice, the Assessing Officer completed the assessment ex- parte by determining the total income of the assessee at Rs.30,80,120/- and made an addition of Rs.28,00,000/- on account of unexplained investment u/s 69 of the Act. Aggrieved with the order passed by the Assessing Officer, the assessee carried the matter in appeal before the learned CIT(A). The assessee’s appeal against the aforesaid addition was dismissed by the learned CIT(A) vide order dated 19/11/2024. The present appeal has been filed by the assessee against the aforesaid impugned appellate order dated 19/11/2024 of learned CIT(A). 3. During the course of hearing before the Income Tax Appellate Tribunal, none was present on behalf of the assessee. Therefore, we proceeded to decide the issue after hearing learned D.R. and perusing the material available on record. The assessee vide its ground No. 4 of the appeal has himself accepted that due to lack of lawful knowledge, the assessee had not submitted the valid documents and if opportunity is afforded, the same will be produced with all objects lawful papers/documents along with supporting evidences. In view of the I.T.A. No.187/Alld/2024 Assessment Year:2016-17 3 foregoing and in the specific facts and circumstances of the present case, the impugned appellate order dated 19/11/2024 is set aside and the issue in dispute regarding the addition of Rs.28,00,000/- on account of unexplained investment in purchase of car made by the Assessing Officer and confirmed by learned CIT(A) is restored back to the file of the Assessing Officer with the direction to pass de novo assessment order in accordance with law after providing reasonable opportunity of hearing to the assessee. The assessee is also directed to produce before the Assessing Officer the necessary papers/documents along with supporting evidences in support of its claim. 4. In the result, the appeal of the assessee stands allowed for statistical purposes. (Orders pronounced on 07/04/2025 in accordance with Rule 34(4) of the I.T.A.T. Rules) Sd/. Sd/. (SANJAY AWASTHI) (SUBHASH MALGURIA ) Accountant Member Judicial Member Dated:07/04/2025 *Singh Copy of the order forwarded to : 1. The Appellant 2. The Respondent 3. Concerned CIT 4. The CIT(A) 5. D.R. ITAT, Lucknow Asstt. Registrar "