MATA DEEN,KOTKASIM V. INCOME TAX OFFICER, JAIPUR

ITA 608/JPR/2025

AI Insights

The case involves an appeal by Shri Mata Deen against the order of the Addl/JCIT(A)-3, Mumbai, which confirmed the AO's addition of Rs.12,25,000 to the assessee's income as unexplained money under section 69A of the Income Tax Act. The AO had initially added this amount following the non-compliance of the assessee to various notices regarding unexplained cash deposits. The ITAT noted the assessee's non-compliance and the ex-parte nature of the lower authorities' decisions but decided to provide another opportunity for the assessee to present his case, citing principles of natural justice.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 714199 (ITAT-JAIPUR)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-08-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: 2012-2013
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: GAURAV AWASTHI
• Assessee Lawyers: S. K. GOGRA
• Keywords: Set aside; Opportunity of being heard; Additional evidence; Principle of natural justice; Competent authority
• Section: 148; 142(1); 133(6)

Judgement Text

"vk;dj vihyh; vf/kdj.k] t;iqj U;k;ihB] t;iqj IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES,’’SMC” JAIPUR Mk0 ,l- lhrky{eh]U;kf;d lnL; ,oa Jh jkBksM deys'k t;UrHkkbZ] ys[kk lnL; ds le{k BEFORE: DR. S. SEETHALAKSHMI, JM & SHRI RATHOD KAMLESH JAYANTBHAI, AM vk;djvihyla-@ITA No.608/JPR/2025 fu/kZkj.ko\"kZ@AssessmentYear : 2012-13 Shri Mata Deen Mohalla Jatwara, KOTKASIM ALWAR 301 702 (Raj) cuke Vs. The ITO Ward 6(1) Jaipur LFkk;hys[kk la-@thvkbZvkjla-@PAN/GIR No.: AWNPD 0463 H vihykFkhZ@Appellant izR;FkhZ@Respondent fu/kZkfjrh dh vksjls@Assesseeby :Shri S.K. Gogra, CA jktLo dh vksjls@Revenue by: Shri Gaurav Awasthi, JCIT-DR lquokbZ dh rkjh[k@Date of Hearing : 23/07/2025 mn?kks\"k.kk dh rkjh[k@Date of Pronouncement : 06 /08 /2025 vkns'k@ORDER PER: RATHOD KAMLESH JAYANTBHAI, AM This appeal filed by the assessee is directed against the order of the ld. Addl/JCIT(A)-3, Mumbai dated 25-02-2025 for the assessment year 2012-13 raising therein following grounds of appeal. ‘’1. That order passed by AO is illegal, unjustified, perverse and against the law and legal facts of the case and is able to be set aside. 2. That AO has grossly erred in doing addition of Rs.12,25,000/- into total income and has erred in not considering that there are sufficient cash balance lying with appellant as opening cash balance out of sale of agricultural land which was being brought forward from financial year 2009-10 and arising out of doing work of animal husbandry. Printed from counselvise.com 2 ITA NO. 608/JPR/2025 MATA DEEN VS ITO, WARD 6(1), JAIPUR 3. That due to not having proper communication and belonging to remote village area the appellant could not understand the intricacies of income tax law and therefore could not respond to notices as issued by the AO and to ld. CIT(A), NFAC 4. That ld. CIT(A) has erred in confirming the order of AO mechanically and without proper appreciating facts and legality of case therefore same may be please be declared as illegal & be quashed.’’ 2.1 Apropos grounds of appeal, it is noticed that the ld.Addl. JCIT(A) passed an ex-parte order by dismissing the appeal of the assessee on account of non-prosecution of the same and non-adducing the submissions /evidences as to the grounds raised before him. The relevant observations as made by the ld.Addl. /JCIT(A)at page 3 in his order is reproduced as under:- ‘’However, in the interest of natural justice, the case of appellant was examined on merit in the light of SOF and grounds of appeal. It is found that the issues raised by the appellant through grounds of appeal is not supported with any submissions/evidences during the appeal proceedings as can be seen from the fact that despite a number of opportunities, the appellant has failed to file any written submission in support of grounds of appeal. Apart from uploading statement of fact, nothing has been submitted to rebut the finding of the AO. Therefore, Grounds of the appeal raised are dismissed. In the result, the appeal of the appellant is dismissed.’’ 2.2 During the course of hearing, the ld.AR of the assessee prayed that one more chance may be provided to the assessee to contest the case before the ld.Addl. /JCIT(A) as the ld.Addl. /JCIT(A) has passed an ex- Printed from counselvise.com 3 ITA NO. 608/JPR/2025 MATA DEEN VS ITO, WARD 6(1), JAIPUR parte order by confirming the action of the AO and without going through the facts and legality of the case. To support his arguments, the ld.AR of the assessee has filed the following documents before the Bench. S.N. Particulars Page No. 1. Written submissions 1-2 2. Application under rule 29 of ITAT Rules for submission of additional evidences 3-5 3. Profile as per Income tax Portal 6-7 4. Balance Sheet, Profit & Loss account, cash book, bank book of Rajasthan Gramin Bankfor f.y. 2011-12 8-14 5. Registration of Motor Vehicle of loading tempo 15 6. Training Certificate of animal husbandry issued by Govt. of Rajasthan 16 7. Bank account pass book of Rajasthan Gramin Bank 17-19 8. Sale deed dated 01-01-2010 in support of cash fund received by appellant 20-28 9. Judgement relid upon 20-28 2.3 On the other hand, the ld.DR supported the orders of the lower authorities. 2.4 We have heard both the parties and perused the materials available on record. In this case, the ld. AO as per details available before him noted that that the assessee during the year under consideration had deposited a cash of Rs.12.25 lacs in his bank account maintained at Rajasthan Gramin Bank, Kotkasim (Alwar). To verify the same, notice u/s 133(6) dated 22-02- Printed from counselvise.com 4 ITA NO. 608/JPR/2025 MATA DEEN VS ITO, WARD 6(1), JAIPUR 2019 was issued to the assessee but no compliance was made. Therefore, the case was reopened u/s 148 of the Act after taking due permission of the competent authority and thereafter notice u/s 148 was issued on 22-03- 2019 which was sent through available e-mail as well as through speed post on his last known address, asking the assessee to prepare a true and correct return of income in respect of which the assessee is assessable under the Income Tax Act, 1961 during the previous year relevant to assessment year 2012-13. The notices u/s 142(1) were issued on 4-09-2019 and 01-11-2019 which were also sent by speed post but no compliance was made. Therefore, a show cause notice dated 8-11-2019 was issued but no response was received by the assessee. Hence, in this situation, the AO had no option but to add the income of Rs.12.25 lacs as unexplained money u/s 69A of the Act in the hands of the assessee. The relevant observation of the AO is reproduced as under:- ‘’In view of the above, it is clear that the assessee is deliberately avoiding the proceedings and therefore, the undersigned is left with no other option but to add the income 12,25,000/- as unexplained money u/s 69A of the Act. Since the assesee has concealed her income penalty u/s 271(1)© will also be initiated on this issue.’’ In first appeal, the ld.Addl/JCIT(A) has confirmed the action of the AO for the reason that the assessee did not pursue the appeal filed before the ld.Addl/JCIT(A) in spite of providing three opportunities and he passed an Printed from counselvise.com 5 ITA NO. 608/JPR/2025 MATA DEEN VS ITO, WARD 6(1), JAIPUR ex-parte order without dealing with the merits of the case, as the assessee did not support ground by filling the written submission before him. To this effect, the ld. AR of the assessee prayed that assessee is deprived off availing of opportunity to contest the case before the ld.Addl/JCIT(A). The bench also noted that the assessee also remained non-compliant before the ld. AO. Considering that aspect of the matter and in the interest of the natural justice, we deem it fit to provide one more chance to contest the case before the ld. AO and to adduce the documents concerning the addition of Rs.12.25 lacs u/s 69A so that the apple of discord be decided after providing an opportunity of being heard in person on the issue. In view of the submissions and facts of the case, the Bench feels that the assessee may be provided one more opportunity to contest the case before the ld. AO. However, the assessee will not seek any adjournment on frivolous ground and remain cooperative while proceedings. Thus, the appeal of the assessee is allowed for statistical purposes. 2.5 Before parting, we may make it clear that our decision to restore the matter back to the file of the ld. AO shall in no way be construed as having any reflection or expression on the merits of the dispute, which shall be adjudicated by ld. AO independently in accordance with law. Printed from counselvise.com 6 ITA NO. 608/JPR/2025 MATA DEEN VS ITO, WARD 6(1), JAIPUR 3.0 In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the Open Court on 06 / 08/2025. Sd/- Sd/- ¼Mk0 ,l- lhrky{eh ½ ¼jkBksM deys'k t;UrHkkbZ ½ (DR. S. SEETHALAKSHMI) (Rathod Kamlesh Jayantbhai) U;kf;dlnL;@Judicial Member ys[kklnL;@Accountant Member Tk;iqj@Jaipur fnukad@Dated:- 06 /08/2025 *Mishra vkns'k dh izfrfyfivxzsf’kr@Copy of the order forwarded to: 1. The Appellant- Shri Mata Deen, Alwar 2. izR;FkhZ@ The Respondent- The ITO, Ward 6(1), Jaipur 3. vk;djvk;qDr@ The ld CIT 4. foHkkxh; izfrfuf/k] vk;djvihyh; vf/kdj.k] t;iqj@DR, ITAT, Jaipur 5. xkMZQkbZy@ Guard File (ITA No. 608/JPR/2025) vkns'kkuqlkj@ By order, lgk;diathdkj@Asstt. Registrar Printed from counselvise.com "