RADHELAL,LUCKNOW V. AO,FNAC, LUCKNOW

ITA 568/LKW/2024

AI Insights

The case involves Shri Radhelal, who appealed against the addition of Rs.1,82,50,000 to his income for the assessment year 2015-16, which was treated as unexplained cash deposit by the Assessing Officer. The assessee had not filed his return of income for the relevant year and the substantial cash deposit was made in his bank account during the financial year 2014-15. The Assessing Officer passed an ex-parte order under sections 148, 144, and 144B of the Income Tax Act due to non-compliance with statutory notices. The CIT(A) dismissed the appeal, and the Tribunal also dismissed the appeal, emphasizing the assessee's failure to substantiate the source of the cash deposits and non-compliance with procedural requirements.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 398195 (ITAT-LUCKNOW)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-06-2025
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2015-2016
• Laws Referred To: Income Tax Act
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: AMIT KUMAR
• Assessee Lawyers: SHWETA MITTAL
• Keywords: Non compliance
• Section: 147; 148; 144; 139

Judgement Text

"I.T.A. No.568/Lkw/2024 Assessment Year:2015-16 1 IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH ‘A’, LUCKNOW BEFORE SHRI ANADEE NATH MISSHRA, ACCOUNTANT MEMBER AND SHRI SUBHASH MALGURIA, JUDICIAL MEMBER I.T.A. No.568/Lkw/2024 Assessment year:2015-16 Shri Radhelal, H. No. 220, Bhasamau BKT, Lucknow. PAN:BXTPR1538M Vs. Assessing Officer, NFAC (Appellant) (Respondent) O R D E R PER SUBHASH MALGURIA:J.M. This appeal vide I.T.A. No.568/Lkw/2024 has been filed by the assessee for assessment year 2015-16 against impugned appellate order dated 18/07/2024 (DIN & Order No.ITBA/NFAC/S/250/2024- 25/1066815072(1) of Commissioner of Income Tax (Appeals) [“CIT(A)” for short]. 2. The facts of the case, in brief, are that the assessee is an individual. The assessee has not filed his return of income for the year under consideration. The assessee had made cash deposit of Rs.1,82,50,000/- in Appellant by Ms. Shweta Mittal, C.A. Respondent by Shri Amit Kumar, Addl. CIT (D.R.) I.T.A. No.568/Lkw/2024 Assessment Year:2015-16 2 the bank account during the financial year 2014-15 relevant to assessment year 2015-16. The Assessing Officer passed the assessment order dated 27/03/2023 u/s 148 read with section 144 read also with section 144B of the Act. The Assessing Officer passed ex-parte order invoking provisions of section 144 of the Act taking adverse view of non compliance with statutory notices issued during the assessment proceedings. In the aforesaid assessment order, income of the assessee was determined at Rs.1,83,97,430/- as against returned income of Rs.1,47,430/-. An addition of Rs.1,82,50,000/- was made by the Assessing Officer treating the cash deposit of the aforesaid amount made by the assessee in the bank account as unexplained. The aforesaid returned income of Rs.1,47,430/- was disclosed by the assessee in the return filed in response to notice u/s 148 of the Act, read with section 147 of the Act. The relevant portion of the assessment order is reproduced as under: I.T.A. No.568/Lkw/2024 Assessment Year:2015-16 3 I.T.A. No.568/Lkw/2024 Assessment Year:2015-16 4 I.T.A. No.568/Lkw/2024 Assessment Year:2015-16 5 I.T.A. No.568/Lkw/2024 Assessment Year:2015-16 6 3. Being aggrieved, the assessee went in appeal before the learned CIT(A) against the addition of Rs.1,82,50,000/- made by the Assessing Officer treating the cash deposit of the aforesaid amount made by the assessee in the bank account. Vide impugned appellate order dated 18/07/2024, the learned CIT(A) dismissed the assessee’s appeal. During the appellate proceedings also the assessee did not respond to notices issued by the learned CIT(A). The details of opportunities given by learned CIT(A) are stated in paragraphs 5 and 5.1 of the impugned appellate order dated 18/07/2024 of learned CIT(A), which is being reproduced below for the ease of reference: I.T.A. No.568/Lkw/2024 Assessment Year:2015-16 7 4. On merits of the addition, the learned CIT(A) came to the conclusion that the assessee had failed to substantiate the claim, and the aforesaid addition of Rs.1,82,50,000/- made by the Assessing Officer was confirmed by the learned CIT(A). The relevant portion of the impugned order of the learned CIT(A) is reproduced as under: I.T.A. No.568/Lkw/2024 Assessment Year:2015-16 8 5. The present appeal has been filed by the assessee against the aforesaid impugned appellate order of learned CIT(A). At the time of hearing before us, the learned Authorized Representative for the assessee, submitted that the assessee could not make compliance with the various notices issued during the proceedings before the Assessing Officer and the learned CIT(A), however, she submitted, the assessee was willing to furnish all details and explanations and for this purpose she requested to restore the disputed addition to the file of the Assessing Officer for de novo order. The learned Sr. Departmental Representative strongly opposed the submissions made by the learned Authorized Representative for the assessee. The learned Sr. D.R. for Revenue submitted that the numerous I.T.A. No.568/Lkw/2024 Assessment Year:2015-16 9 opportunities were given by the Assessing Officer during assessment proceedings and by the learned CIT(A) during the appellate proceedings. He also submitted that the assessee failed to make compliance before the Assessing Officer and before the learned CIT(A) despite numerous opportunities which proved that the assessee wanted to avoid participation in statutory proceedings and also wanted to evade proper inquiries through non cooperation. He also drew our attention to various opportunities given by the Assessing Officer and by the learned CIT(A). This has already been referred to in foregoing paragraphs of this order. The learned D.R. for Revenue also contended that the malafide intention of the assessee to avoid participation and co-operation in statutory proceedings for proper inquiry, is evidenced by this fact that the assessee had not filed return of income u/s 139 of the Act, and the assessee only filed return in response to notice issued u/s 148 of the Act read with section 147 of the Act. In view of this, the learned D.R. submitted that the assessee does not deserve another opportunity and that the assessee’s appeal should be dismissed. 6. We have heard the rival parties and have gone through the material placed on record. We find that during the assessment proceedings and during the appellate proceedings in the office of the learned CIT(A), the assessee has not ensured full compliance to establish the genuineness of cash deposits made in the bank account. Further we also find that even during the appellate proceedings in Income Tax Appellate Tribunal, the assessee has not filed any evidence or materials establishing the genuineness of cash deposits made in the bank account. No persuasive material has been brought for our consideration to require any interference with impugned order of learned CIT(A). The Assessing Officer and learned CIT(A) have passed speaking orders in the light of facts and circumstances of this case. We are persuaded by the emphatic submissions made by the I.T.A. No.568/Lkw/2024 Assessment Year:2015-16 10 learned D.R., considering overall facts and circumstances of the present case before us in this appeal, to confirm the aforesaid addition of Rs.1,82,50,000/- and to sustain the impugned appellate order dated 18/07/2024 of learned CIT(A) without any interference considering the reasons stated therein and considering the foregoing discussions. In view of the above, all the grounds of appeal of the assessee are dismissed. 7. In the result, the appeal of the assessee stands dismissed. (Order pronounced in the open court on 06/06/2025) Sd/. Sd/. (ANADEE NATH MISSHRA) (SUBHASH MALGURIA) Accountant Member Judicial Member Dated:06/06/2025 *Singh Copy of the order forwarded to : 1. The Appellant 2. The Respondent. 3. Concerned CIT 4. D.R., I.T.A.T., Lucknow "