PRAVIN SHANKAR PAKALE,RATNAGIRI V. INCOME TAX OFFICER, RATNAGIRI

ITA 1153/PUN/2024

AI Insights

The case involves an appeal by Pravin Shankar Pakale against an ex-parte order of the Addl. / JCIT(A) / NFAC, Panaji, which confirmed the addition of Rs.3,89,000 to the assessee's income as unexplained cash credit under section 68 read with section 115BBE of the Income Tax Act, 1961, for the assessment year 2017-18. The addition was initially made by the Assessing Officer following the assessee's return of income declaring a total income of Rs.6,27,570 on a presumptive basis under section 44AD of the Act. The Tribunal noted the assessee's non-compliance with statutory notices and the subsequent ex-parte decision by the Addl. / JCIT(A). The Tribunal found merit in the assessee's counsel's argument that the Assessing Officer had accepted other cash deposits in the same account but not the source of a specific deposit of Rs.3 lakhs on 25.11.2016. The Tribunal's decision to remand the case back to the Addl. / JCIT(A) was based on the principles of natural justice, providing the assessee another opportunity to present his case.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 474160 (ITAT-PUNE)
• Duration Of Justice: 4 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-10-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 01-10-2024
• Assessment Year: misc
• Appeal Filed On: 23-05-2024
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: B S RAJPUROHIT
• Assessee Lawyers: PRAMOD S SHINGTE
• Keywords: Unexplained cash credit
• Section: 143(3); 68; 44AD

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH “SMC”, PUNE BEFORE SHRI R. K. PANDA, VICE PRESIDENT AND SHRI VINAY BHAMORE, JUDICIAL MEMBER ITA No.1153/PUN/2024 Assessment Year : 2017-18 Pravin Shankar Pakale 1, At Post – Nivali, Tal – Chiplun, Dist. Ratnagiri – 415605 Vs. ITO, Ratnagiri PAN: AKBPP4290Q (Appellant) (Respondent) Assessee by : Shri Pramod S Shingte Department by : Shri B S Rajpurohit, Addl.CIT Date of hearing : 01-10-2024 Date of pronouncement : 16-10-2024 O R D E R PER R. K. PANDA, VP : This appeal filed by the assessee is directed against the ex-parte order dated 30.03.2024 of the Addl. / JCIT(A) / NFAC, Panaji relating to assessment year 2017-18. 2. Although a number of grounds have been raised by the assessee, however, these all relate to the ex-parte order of the Addl. / JCIT(A) / NFAC in confirming the order of the Assessing Officer in making addition of Rs.3,89,000/- to the total income of the assessee being unexplained cash credit u/s 68 r.w.s. 115BBE of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) 2 ITA No.1153/PUN/2024 3. Facts of the case, in brief, are that the assessee filed its return of income on 05.02.2018 declaring total income of Rs.6,27,570/- u/s 44AD of the Act on presumptive basis. The Assessing Officer completed the assessment u/s 143(3) of the Act determining the total income of the assessee at Rs.10,16,570/- wherein he made addition of Rs.3,89,000/- being the unexplained cash deposit of specified bank notes during the demonetization period by invoking the provisions of section 68 of the I.T. Act, 1961. 4. Since the assessee, despite number of opportunities granted, did not make any submission, the Addl. / JCIT(A)-Faceless confirmed the addition made by the Assessing Officer. 5. Aggrieved with such order of the Addl. / JCIT(A), the assessee is in appeal before the Tribunal. 6. We have heard the rival arguments made by both the sides and perused the orders of the Assessing Officer and Ld. Addl. / JCIT(A). It is an admitted fact that due to non-compliance to the statutory notices, the Addl. / JCIT(A) / NFAC, passed the ex-parte order sustaining the addition made by the Assessing Officer. It is the submission of the Ld. Counsel for the assessee that the Assessing Officer has accepted the preceding and succeeding cash deposits in the same bank account whereas he did not accept the source of deposit of Rs.3 laks on 25.11.2016. It is the submission of the Ld. Counsel for the assessee that the Addl./JCIT(A) has 3 ITA No.1153/PUN/2024 passed the ex-parte order sustaining the addition made by the Assessing Officer without giving adequate opportunity to the assessee. It is also his submission that given an opportunity, the assessee is in a position to substantiate his case before the Addl. / JCIT(A) by producing the relevant details. Considering the totality of the facts of the case and in the interest of justice, we deem it proper to restore the issue to the file of the Addl. / JCIT(A) with a direction to grant one more opportunity to the assessee to substantiate his case by filing the requisite details and decide the issue as per fact and law. The assessee is also hereby directed to submit the details before the Addl. / JCIT(A) / NFAC on the appointed date without seeking any adjournment under any pretext, failing which the Addl. / JCIT(A) is at liberty to pass appropriate order as per law. We hold and direct accordingly. The grounds raised by the assessee are accordingly allowed for statistical purposes. 7. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the open Court on 16th October, 2024. Sd/- Sd/- (VINAY BHAMORE) (R. K. PANDA) JUDICIAL MEMBER VICE PRESIDENT Pपुणे Pune; दिन ांक Dated : 16th October, 2024 GCVSR 4 ITA No.1153/PUN/2024 आदेश की प्रतितिति अग्रेतिि/Copy of the Order is forwarded to: 1. अपीलार्थी / The Appellant; 2. प्रत्यर्थी / The Respondent 3. 4. The concerned Pr.CIT, Pune DR, ITAT, ‘SMC’ Bench, Pune 5. गार्ड फाईल / Guard file. आदेशानुसार/ BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अधिकरण ,पुणे / ITAT, Pune S.No. Details Date Initials Designation 1 Draft dictated on 08.10.2024 Sr. PS/PS 2 Draft placed before author 09.10.2024 Sr. PS/PS 3 Draft proposed & placed before the Second Member JM/AM 4 Draft discussed/approved by Second Member AM/AM 5 Approved Draft comes to the Sr. PS/PS Sr. PS/PS 6 Kept for pronouncement on Sr. PS/PS 7 Date of uploading of Order Sr. PS/PS 8 File sent to Bench Clerk Sr. PS/PS 9 Date on which the file goes to the Head Clerk 10 Date on which file goes to the A.R. 11 Date of Dispatch of order "