MINABEN HEMANTSINH PARMAR,GANDHINAGAR V. THE ITO, WARD-1, GANDHINAGAR

ITA 173/AHD/2025

AI Insights

The case involves Minaben Hemantsinh Parmar, the appellant, who contested an order from the National Faceless Appeal Centre (NFAC), Delhi, which arose from an assessment order under sections 147 and 144 of the Income Tax Act, 1961, for the Assessment Year 2019-20. The primary issue was the treatment of certain bank credits as unaccounted income by the Assessing Officer. These credits were claimed by the assessee to be maturity proceeds of fixed deposits (FDRs) from her deceased husband's accounts, where she was the nominee. The CIT(A) dismissed her appeal on procedural grounds, specifically the non-deposit of advance tax, without addressing the merits of her case. The Tribunal found this dismissal unjustified and remanded the case for a fresh assessment on its merits.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 470097 (ITAT-AHMEDABAD)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-03-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2019-2020
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PURSHOTTAM KUMAR
• Keywords: Set aside; Income from undisclosed sources
• Section: 144

Judgement Text

"THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD “A” BENCH Before Shri Sanjay Garg, Judicial Member And Shri Makarand V. Mahadeokar , Accountant Member Minaben Hemantsinh Parmar, C-103, Spenta Apartment, K Road, Vavol, Gandhinagar-382016 PAN: BGRPP8141B (Appellant) Vs The ITO, Gandhinagar (Respondent) Assessee by: Shri Chintan Thakkar, A.R. Revenue by: Shri Purshottam Kumar, Sr. D.R. Date of hearing : 19-03-2025 Date of pronouncement : 27-03-2025 आदेश/ORDER Per Sanjay Garg, Judicial Member: The present appeal has been filed by the Assessee against the order passed by the National Faceless Appeal Centre (NFAC), Delhi [hereinafter referred to as “CIT(A)’] dated 29.11.2024 arising out of the assessment order passed u/s.147 r.w.s 144 of the Income Tax Act, 1961 (here-in-after referred to as “the Act”) relevant to the Assessment Year 2019-20. 2. The sole issue involved in this case is relating to the amount credited in the bank account of the assessee. The ITA No. 173 /Ahd/2025 Assessment Year 2019-20 I.T.A No. 173/Ahd/2025 Minaben Hemantsinh Parmar, A.Y. 2019-20 2 Assessing Officer treated the said credits as unaccounted income of the assessee. It has been the case of the assessee that the said credits were out of the maturity proceeds of FDR etc which were earlier standing in the name of the deceased husband of the assessee. That after the death of her husband, the said amount was credited to the account of the assessee being his nominee. The Assessing Officer treated the said amount as income of the assessee from undisclosed sources. The ld. Authorized Representative of the assessee has stated that the assessee being a lady was not aware of the nitty gritty of the income tax proceedings, and hence, could not explain the source of the credits in her bank account. The ld. Authorized Representative has further brought our attention to the impugned order of the CIT(A) to show that the ld. CIT(A), instead of adjudicating the appeal on merits, has dismissed the appeal on the ground that the assessee had not the deposited advance tax. 3. We have heard the rival contentions and gone through records. In this case, the ld. CIT(A) dismissed the appeal of the assessee for want of deposit of advance tax on the income assessed by the Assessing Officer. However, the assessee has in this case disputed the very validity of the addition made by the Assessing Officer. Under such circumstances, there was no need to deposit advance tax on such additions. Therefore, the action of the CIT(A) in dismissing the appeal for want of deposit of advance tax is not justified, as the CIT(A) under such circumstances was supposed to decide the appeal on merits. Even as contended by the Ld. A.R. of the assessee, the I.T.A No. 173/Ahd/2025 Minaben Hemantsinh Parmar, A.Y. 2019-20 3 credits in the bank account of the assessee were out of the deposits made by the deceased husband of the assessee and she had received such deposit being her legal heir. Under the circumstances, we feel that the assessee has a fair case on merits. In our view, the assessee deserves to be given a further opportunity to present her case before the Assessing Officer. We, accordingly, set aside the impugned order of the ld. CIT(A) and restore the matter back to the file of Assessing Officer for assessment afresh on this issue. It is directed that the assessee will provide and furnish the necessary evidences/documents before the Assessing Officer. 4. In the result, the appeal of the assessee is treated as allowed for statistical purposes. Order pronounced in the open court on 27-03-2025 Sd/- Sd/- (Makarand V. Mahadeokar) (Sanjay Garg) Accountant Member Judicial Member Ahmedabad : Dated 27/03/2025 आदेश क\u0006 \u0007\bत ल प अ\u000fे षत / Copy of Order Forwarded to:- 1. Assessee 2. Revenue 3. Concerned CIT 4. CIT (A) 5. DR, ITAT, Ahmedabad 6. Guard file. By order/आदेश से, उप/सहायक पंजीकार आयकर अपील\u0012य अ\u0013धकरण, अहमदाबाद "