MD HASNAIN ANSARI,JAMSHEDPUR V. ITO, WARD-2(3), JAMSHEDPUR

ITA 346/RAN/2024

AI Insights

The case involves Md. Hasnain Ansari, the appellant, who contested the order of the ld. CIT(A), National Faceless Appeal Centre, Delhi, concerning the assessment year 2018-2019. The primary issue arose from a significant discrepancy between the cash deposits in the appellant's bank account and the turnover reported in the Income Tax Return (ITR). The Assessing Officer (AO) added the unexplained cash deposit of Rs.10,19,88,014 under section 69A read with section 115BBE of the Income Tax Act and imposed a penalty under section 271AAC(1). The CIT(A) upheld the AO's decision after the appellant failed to respond to notices. The appellant then appealed to the Income Tax Appellate Tribunal, arguing that the CIT(A)'s order was passed without a fair opportunity to present supporting documents.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 780677 (ITAT-RANCHI)
• Duration Of Justice: 1 year(s) 1 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-10-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2018-2019
• Appeal Filed On: 22-08-2024
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: KHUBCHANDT PANDYA
• Keywords: Set aside

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “RANCHI BENCH”, RANCHI BEFORE SHRI SONJOY SARMA, JM & SHRI RATNESH NANDAN SAHAY, AM (THROUGH HYBRID MODE) आयकर अपील सं./ITA No.346/RAN/2024 (निर्धारण वर्ा / Assessment Year :2018-2019) Md. Hasnain Ansari, M/s Rose Traders, H.No.929 Ground Floor Kashidih Mohamedan Line, Post : Sakchi, Jamshedpur Vs. ITO Ward-2(3), Jamshedpur स्थायी लेखा सं./PAN No. : ABVPM 8897 M (अपीलार्थी /Appellant) .. (प्रत्यर्थी / Respondent) निर्ाारिती की ओर से /Assessee by : None राजस्व की ओर से /Revenue by : Shri Khubchand T Pandya Sr.DR सुनवाई की तारीख / Date of Hearing : 02/09/2025 घोषणा की तारीख/Date of Pronouncement : 09/10/2025 आदेश / O R D E R Per Sonjoy Sarma, JM : The above captioned appeal is filed by the assessee against the order dated 29.07.2024, passed by the ld. CIT(A), National Faceless Appeal Centre (NFAC), Delhi for the assessment year 2018-2019. 2. Brief facts of the case are that the assessee is an individual during the assessment year in question. It was noticed by the AO that the assessee deposited cash of Rs.31,43,49,325/- in his bank account, however, in the ITR turnover of the assessee was disclosed at Rs.21,23,61,311/-. Accordingly, the AO found that there was a difference of Rs.10,19,88,014/-. The Ld. AO requested the assessee to explain the Printed from counselvise.com ITA No.346 /Ran/2024 2 difference but in spite of giving adequate opportunity the assessee failed to explain the source of cash deposits of Rs.10,19,88,014/-. Accordingly the AO had made addition of Rs.10,19,88,014/- u/s.69A r.w.s.115BBE of the Act and also initiated penalty proceeding u/s.271AAC(1) of the Act. During the penalty proceedings the assessee did not furnish any reply to the show cause notice issued by the AO ultimately the AO imposed penalty of Rs.78,78,574/- @10% u/s.271AAC(1) of the Act. Dissatisfied with the above appeal, the assessee preferred an appeal before the ld. CIT(A), however, the assessee failed to comply to the notices issued by the ld.CIT(A) on the various date, ultimately the ld. CIT(A) on the basis of material available on record passed the order by upholding the order of the AO by dismissing the appeal of the assessee. Aggrieved by the above order, the assessee is in further appeal before the Tribunal raising various grounds, however, the primary contention of the assessee is that the impugned order passed by the ld.CIT(A) is bad in law and liable to be set aside as the assessee did not get an opportunity to submit the supported documents in order to substantiate its claim. 3. At the time of hearing, no one turned up before the Bench. Notice was served upon the assessee, however, one application has been filed on behalf of the assessee seeking an adjournment, however, ld.Sr. DR objected to such adjournment stating that the order challenged before this Tribunal is an ex-parte order, therefore, there is no need to keep this file pending for the next date. Printed from counselvise.com ITA No.346 /Ran/2024 3 4. We after hearing the submissions of the ld. Sr. DR and examining the facts of the case, find that the order under challenge before us and the primary contention of the assessee is that the impugned order is an ex- parte order, therefore, another chance may be given to the assessee so as to the assessee can appear before the ld. CIT(A). Considering this aspect, we reject the adjournment application and heard this matter with the assistance of the ld. Sr. DR. 5. From the perusal of the record, it is correct that the impugned order is an ex-parte order passed without looking to the merits of the case although opportunities were given to the assessee, however, in the interest of justice and fair play it is necessary to remand the whole issue to the file of the ld. CIT(A) with a direction to decide the issue afresh on merits after affording sufficient opportunities of being heard to the assessee. The assessee is also directed to comply to the notices to be issued by the ld. CIT(A) without any fail. In case the assessee does not comply to the notices, in that event, the ld.CIT(A) can pass ex-parte order against the assessee on the merits of the case. 6. In terms of above, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open court on 09/10/2025. Sd/- (RATNESH NANDAN SAHAY) Sd/- (SONJOY SARMA) लेखा सदस्य / ACCOUNTANT MEMBER न्यायिक सदस्य / JUDICIAL MEMBER रधाँची Ranchi; दिनांक Dated 09/10/2025 Prakash Kumar Mishra, Sr.P.S. Printed from counselvise.com ITA No.346 /Ran/2024 4 आदेश की प्रनिलिपि अग्रेपर्ि/Copy of the Order forwarded to : आदेशधिुसधर/ BY ORDER, (Senior Private Secretary) आयकर अिीिीय अधर्करण, रधाँची / ITAT, Ranchi 1. अपीलार्थी / The Appellant- . 2. प्रत्यर्थी / The Respondent- 3. आयकि आयुक्त(अपील) / The CIT(A), 4. आयकर आयुक्त / CIT 5. निभागीय प्रनतनिनर्, आयकि अपीलीय अनर्किण, रधाँची / DR, ITAT, Ranchi 6. गार्ड फाईल / Guard file. सत्यापपत प्रतत //True Copy// Printed from counselvise.com "