PAWAN KUMAR JHA,KATIHAR V. ITO, KATIHAR

ITA 580/PAT/2024

AI Insights

The case involves Pawan Kumar Jha, the appellant, who appealed against the order of the Commissioner of Income Tax (Appeals) confirming an addition of Rs.3,42,288 to his income for the Assessment Year 2017-18. This addition was based on the peak credit of amounts deposited in his bank account. The Tribunal noted that both the initial assessment and the CIT(A)'s order were ex parte/best judgment orders, and the facts had not been thoroughly examined by the lower authorities. The appellant claimed that the deposits were business receipts from transactions with IFFCO, a fertilizer company. The Tribunal found that the lower authorities had not properly examined these facts and thus restored the matter to the Assessing Officer for a fresh assessment.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 32401 (ITAT-PATNA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-02-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2017-2018
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Keywords: Condonation of delay; Set aside; Business income; Peak credit
• Section: 250

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL PATNA “SMC” BENCH, VIRTUAL HEARING AT KOLKATA Before SRI SANJAY GARG, JUDICIAL MEMBER I.T.A. No.: 580/PAT/2024 Assessment Year: 2017-18 Pawan Kumar Jha ………….. Appellant IDFC Krishak Seva Kendra, Jhagru Chak, Falka, Katihar-854108. (PAN: BAJPJ4214R) Vs. ITO, Ward-1(5), Katihar .............. Respondent Appearances: Appellant represented by: N o n e Respondent represented by: Shri Ashwani Kumar, Sr. DR Date of concluding the hearing : 13.02.2025 Date of pronouncing the order : 13.02.2025 ORDER The captioned appeal has been preferred by the assessee against the order dated 19.12.2023 of the Ld. Commissioner of Income Tax (Appeal), National Faceless Appeal Centre, Delhi [hereinafter referred to as Ld. ‘CIT(A)’] u/s. 250 of the Income Tax Act, 1961 (hereinafter referred to as the “Act”) for Assessment Year (AY) 2017-18. 2. This appeal of assessee is time barred by 206 days. A separate application for condonation of delay has been filed. Considering the averments made the said application, the delay in filing the appeal is hereby condoned. 3. No one has put in appearance on behalf of the assessee despite notice. Therefore, I proceed to decide the appeal on merits after going through the records and after hearing the Ld. DR. 4. The assessee in this appeal is aggrieved by the action of the Ld. CIT(A) in confirming the addition made by the Assessing Officer of Rs.3,42,288/- on I.T.A. No.: 580/PAT/2024 Pawan Kumar Jha, AY : 2017-18 Page 2 of 3 account of peak credit of the amount deposited in the bank account of the assessee on different dates. The assessee has also agitated against the action of the lower authorities in estimating 8% profit rate on the total deposits in the bank account. 5. At the outset, it is noticed that the impugned assessment order is an ex parte/best judgment order passed u/s. 144/147 of the Act. The impugned order of the Ld. CIT(A) is also an ex parte order. A perusal of the facts on record would reveal that the assessee has claimed before the lower authorities that the aforesaid deposits were out of business receipts of the assessee in respect of the fertilizer business. It has been explained through submissions before the Assessing Officer that the aforesaid credit and debit entries were in respect of transactions with IFFCO, which entity deals with the fertilizers. In this case, in my view, the facts of the case have not been properly examined by the lower authorities. The assessee, in my view, deserves an opportunity to present his case before the Assessing Officer. 6. Considering the overall facts and circumstances of this case, in my view, the interests of justice will be well served, if the assessee is given an opportunity to present his case before the Assessing Officer. Impugned order of the Ld. CIT(A) is accordingly, set aside and the matter is restored to the file of the Assessing Officer for assessment afresh on the issue. Needless to say, the Assessing Officer will give proper opportunity to the assessee to present his case and thereafter to decide the matter in accordance with law. 7. In the result, the appeal of the assessee stands allowed for statistical purposes. Order pronounced in the open Court. Sd/- [Sanjay Garg] Judicial Member Dated: 13.02.2025 J.Dey (Sr. P.S.) I.T.A. No.: 580/PAT/2024 Pawan Kumar Jha, AY : 2017-18 Page 3 of 3 Copy of the order forwarded to: 1. Appellant : Shri Pawan Kumar Jha 2. Respondent : ITO, Ward-1(5), Katihar 3. CIT(A), NFAC, Delhi 4. CIT 5. DR, ITAT, Patna Bench, Patna. 6. Guard File. //True copy // By order Assistant Registrar ITAT, Patna Benches Patna "