PUTHIYARAMBATH BALAKRISHNAN,KOZHIKODE V. ITO, WARD 1(1), KOZHIKODE

ITA 861/COCH/2024

AI Insights

The case involves an appeal by Puthiyarambath Balakrishnan against the order of the National Faceless Appeal Centre (NFAC), Delhi, which dismissed his appeal for want of prosecution. The appellant, engaged in the business of a stamp vendor, had his income assessment for AY 2017-18 significantly increased by the Income Tax Officer (ITO) due to unexplained cash deposits during the demonetisation period. The CIT(A) dismissed the appeal without considering the merits, as the appellant was not represented due to incorrect service of notice. The ITAT found that the CIT(A) had not addressed the grounds of appeal and the facts presented by the appellant, leading to the decision to remand the case for a thorough examination on merits.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 23448 (ITAT-COCHIN)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-02-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2017-2018
• Other Referred Cases: PCIT vs. Premkumar Arjundas Luthra
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: LEENA LAL
• Assessee Lawyers: RISHAL K.
• Keywords: Reasonable cause
• Section: 143(3)

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH BEFORE SHRI INTURI RAMA RAO, AM ITA No. 861/Coch/2024 Assessment Year: 2017-18 Puthiyarambath Balakrishnan .......... Appellant \"Achutham\", Pilakkatt, Parambra Kottooli, Kozhikode 673016 [PAN: AGGPB2229J] vs. The Income Tax Officer .......... Respondent Ward - 1(1), Kozhikode Appellant by: Shri Rishal K., Advocate Respondent by: Smt. Leena Lal, Sr. D.R. Date of Hearing: 05.02.2025 Date of Pronouncement: 19.02.2025 O R D E R This appeal filed by the assessee is directed against the order of the National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] dated 07.02.2024 for Assessment Year (AY) 2017-18. 2. Brief facts of the case are that the appellant is an individual engaged in the business of stamp vendor. The return of income for AY 2016-18 was filed on 12.10.2017 declaring income of Rs. 3,04,600/-. Against the said return of income, the assessment was completed by the Income Tax Officer, Ward -1(1), Kozhikode (hereinafter called \"the AO\") vide order dated 18.11.2019 passed u/s. 143(3) of the Income Tax Act, 1961 (the Act) at a total income of Rs. 16,59,100/-. While doing so, 2 ITA No. 861/Coch/2024 Puthiyarambath Balakrishnan the AO made addition of cash deposits made during the demonetisation period in the State Bank of India, Main Branch, Kozhikode and Canara Bank, Cherooty Road, Kozhikode of Rs. 13,54,500/- as unexplained money of the assessee for alleged failure of the appellant to prove the source of cash deposits made in the bank accounts. 3. Being aggrieved, an appeal was filed before the CIT(A), who vide the impugned order dismissed the appeal for want of prosecution. 4. Being aggrieved, the appellant is in appeal before the Tribunal in the present appeal. 5. At the outset we find that there is a delay of 184 days in filing the present appeal. The appellant filed petition seeking condonation of delay along with an affidavit stating that the delay had occurred as the appellant was not aware of the appellate order which came to his knowledge only on 23.08.2024. It is submitted that the delay is not willful or deliberate, therefore, prayed that the delay may be condoned. On a perusal of the condonation petition, it is evident that the appellant is prevented by reasonable cause from filing the appeal. Therefore, we condone the delay and admit the appeal for adjudication. 6. It is submitted before me that the notice sent by the CIT(A) went to the wrong email ID, therefore, the appellant could not put up any appearance before the CIT(A). Hence, the matter may be remanded back to the file of the CIT(A). 7. On the other hand, the learned Sr. DR has no serious objection to the request for remanding matter. 3 ITA No. 861/Coch/2024 Puthiyarambath Balakrishnan 8. Having heard the rival submissions I am of the considered opinion that the AO made the addition of cash deposited during the demonetisation period as unexplained money of the assessee for the alleged failure of the assessee to prove the source of cash deposits. Even before the appellate proceedings before the CIT(A) the appellant could not put up any appearance as the notices of hearing were not served on the appellant. In the circumstance the CIT(A) dismissed the appeal for non-prosecution. The appellant raised three grounds of appeal wherein the appellant took a specific plea that the cash deposits were made out of the proceeds of stamp papers and the amounts were deposited for the purpose of purchase of papers from the treasury. The CIT(A), without adverting to the facts and the grounds of appeal raised by the assessee, merely dismissed the appeal. 9. As contemplated u/s. 250(6) of the Act the CIT(A) is required to frame points of determination followed by a detailed discussion thereupon before passing the order. It is the settled position of law that the CIT(A), even while disposing of the appeal exparte, is duty bound to dispose of the appeal on merits. Reliance in this regard can be placed on the decision of the Hon'ble Bombay High Court in the case of PCIT vs. Premkumar Arjundas Luthra 279 CTR 614. Therefore, in the light of the above legal position we are of the considered view that the matter requires to be remanded to the file of the CIT(A) with the direction to dispose of the appeal de novo on merits after affording reasonable opportunity of hearing to the assessee. 4 ITA No. 861/Coch/2024 Puthiyarambath Balakrishnan 10. In the result, the appeal filed by the assessee is allowed for statistical purposes. 11. Order pronounced in the open court on 19th February, 2025. Sd/- (INTURI RAMA RAO) ACCOUNTANT MEMBER Cochin, Dated: 19th February, 2025 n.p. Copy to: 1. The Appellant 2. The Respondent 3. The Pr. CIT concerned 4. The Sr. DR, ITAT, Cochin 5. Guard File Assistant Registrar ITAT, Cochin "