MAYANK SINGH,PATNA V. ASSISTANT COMMISSIONER OF INCOME TAX , CIRCLE-5, PATNA, PATNA

ITA 209/PAT/2024

AI Insights

The case involves Mayank Singh, the appellant, who contested an order from the Assistant Commissioner of Income Tax, Circle-5, Patna, concerning the assessment year 2017-18. The primary issues arose from the additions made by the Ld. AO under sections 144, 69A, and 44AD of the Income Tax Act, 1961, due to non-response to notices and unexplained cash deposits during the demonetization period. The Ld. CIT(A) upheld these additions, leading to the current appeal. The tribunal noted procedural lapses in the earlier hearings and decided to remand the case for a fresh examination, emphasizing the principles of natural justice.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 33454 (ITAT-PATNA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-01-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB
• Assessment Year: 2017-2018
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Keywords: Unexplained cash credit; Principle of natural justice; Initiation of penalty proceedings
• Section: 144; 250; 44AD; 69A

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL “PATNA BENCH” PATNA (VIRTUAL HEARING AT KOLKATA) SHRI SONJOY SARMA, JUDICIAL MEMBER SHRI SANJAY AWASTHI, ACCOUNTANT MEMBER I.T.A. No. 209/Pat/2024 Assessment Year: 2017-18 Mayank Singh, Road No. 01, House of Madhuri Singh Ganesh Path, Shastrinagar, Shivpuri, Bihar - 800023 [PAN: AOBPS7972N] .....................…...…………….... Appellant vs. Assistant Commissioner of Income Tax, Circle-5, Patna, Loknayak Bhawan, Dakbunglow Road, Patna - 800001 ...........…..…........................ Respondent Appearances by: Assessee represented by : None Department represented by : Ashwani Kumar, Sr. DR Date of concluding the hearing : 08.01.2025 Date of pronouncing the order : 09.01.2025 ORDER PER SANJAY AWASTHI, ACCOUNTANT MEMBER: 1. It is seen that there is a delay of 288 days in filing the appeal. The assessee has filed an application for condoning the said delay, with the following contents: “We enclose herewith an appeal u/s 253 of the I.T. Act 1961 against the order under section 250 of the Income Tax Act, 1961, relating to assessment year 2017- 18 on the 30.01.2023. Through this appeal should have been filed on or before 01/04/2023, but could not be so filed as I was Bed ridden due to dengue and I was advised for complete bed rest. We therefore pray that delay in filing the appeal should be condoned and it should be treated as filed within the allowed time.” I.T.A. No. 209/Pat/2024 Mayank Singh 2 Considering the reasons advanced in the said application the delay is hereby condoned and the appeal is admitted for adjudication. 1.1 The present appeal emanates from order under Section 250 of the Income Tax Act, 1961 (hereafter ‘the Act’) dated 30.01.2023, passed by the Ld. Commissioner of Income-tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi (hereinafter referred to as the “Ld. CIT(A)”] for A.Y. 2017-18. 1.2 The impugned order has been passed after the Ld. AO passed an order u/s 144 of the Act dated 10.12.2019. It is seen that the Ld. AO was constrained to pass an order u/s 144 of the Act since several notices issued for seeking details and clarifications regarding the returned income went un-responded. The Ld. AO made two additions as under: (i) Cash deposit during the demonetization period of Rs. 1,15,34,000/-. (ii) Addition made on account of income determined u/s 44AD of the Act at Rs. 24,41,380/-. 2. Before the Ld. CIT(A) also, the assessee could not succeed mainly on the ground that he did not respond to several notices fixing dates for hearing, leading to an exparte order. 2.1 Aggrieved with this action, the assessee has filed the present appeal with the following grounds: “1) For that the Grounds of Appeal hereto are without prejudice to one another. 2) For that in the facts and circumstances of the case Id. CIT (A) is not justified in not giving proper time to substantiate its claim which is violative of principal of natural justice. 3) For that the learned CIT(A) is not justified in confirming the addition of Rs. 1,15,34,000/-as unexplained cash credit as u/s 69A of the IT. Act, 1961. Whenever, the fact is on record that the appellant was engaged in retails business in the name of M/s Satya Enterprises and Maintained proper books of accounts. 4) For that the learned CIT(A) is not justified in confirming the addition of Rs.24,41,380/-on account of income determined u/s 44AD. I.T.A. No. 209/Pat/2024 Mayank Singh 3 5) For that the entire assessment order is bad both in law and facts of the case. 6) For that the demand made on account of interest u/s 234B, and 234C is unsustainable in law being mechanical and without the sanction of law. 7) For that the initiation of penalty proceedings u/s 271AAC of the 1.T. Act, 1961 is arbitrary, unjustified, void, ab-initio and bad in laws. 8) For that the initiation of penalty proceedings u/s 271A of the IT. Act, 1961 is arbitrary, unjustified, void, ab-initio and bad in laws.” 3. The hearing in this case was conducted over a period of 2 days on 06.01.2025 and 08.01.2025. The ld. AR requested that due to situation beyond the control of the assessee he could not make a proper presentation before the authorities below and therefore, he pleaded for remanding the matter back to any of the authorities below for another chance. The Ld. DR was also agreeable in case the matter was to be remanded back. 3.1 We have considered the rivals submissions and also gone through the documents before us. It is felt that in the interest of substantive justice this matter deserves to be remanded back to the file of Ld. CIT(A) for fresh adjudication. It is expected that the assessee would avail of this opportunity to present his case before the Ld. CIT(A). 4. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the court on 09.01.2025 Sd/- Sd/- [Sonjoy Sarma] [Sanjay Awasthi] Judicial Member Accountant Member Dated: 09.01.2025 AK, PS I.T.A. No. 209/Pat/2024 Mayank Singh 4 Copy of the order forwarded to: 1. Mayank Singh 2. Assistant Commissioner of Income Tax, Circle-5, Patna 3. CIT(A)- 4. CIT- 5. CIT(DR) //True copy// By order Assistant Registrar, Kolkata Benches "