RADHESHYAM,VILLAGE SEVDA , ASHTA V. COMMISSIONER OF INCOME-TAX (APPEALS), DELHI

ITA 666/IND/2024

AI Insights

The case involves Radheyshyam, an illiterate individual from a remote village in Madhya Pradesh, who was assessed for income tax for the Assessment Year 2008-09 without filing a return. The Assessing Officer (A.O) issued a notice under section 148 of the Income Tax Act, 1961, and subsequently assessed his income based on cash deposits of Rs. 12,85,000 in his bank account, ignoring outgoings. The first appeal to the CIT(A) was dismissed due to non-compliance by the assessee. Radheyshyam then appealed to the ITAT, which found merit in his request for a de novo hearing, considering his lack of knowledge about tax laws and procedures.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 777588 (ITAT-INDORE)
• Duration Of Justice: 1 year(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-09-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2008-2009
• Appeal Filed On: 02-09-2024
• Other Referred Cases: Roshan Di Hatti v. CIT [1977] 107 ITR 938 (SC), Kale Khan Mohammad Hanif v. CIT[1963] 50 ITR 1 (SC)
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ASHISH PORWAL
• Keywords: Condonation of delay; Set aside; Tax effect; Competent authority
• Section: 147; 148; 144; 142(1); 271(1)(c); 68

Judgement Text

" Page 1 of 9 आयकर अपीलीय अिधकरण, इंदौर Ɋायपीठ, इंदौर IN THE INCOME TAX APPELLATE TRIBUNAL INDORE BENCH, INDORE BEFORE SHRI B.M. BIYANI, ACCOUNTANT MEMBER AND SHRI PARESH M JOSHI, JUDICIAL MEMBER ITA No.666/Ind/2024 (Assessment Year : 2008-09) Radheyshyam, Village Sevda, Ashta, Madhya Pradesh (PAN:CEZPR5392R) बनाम/ Vs. CIT (A), NFAC Delhi (Assessee/Appellant) (Revenue/Respondent) Assessee by None Revenue by Shri Ashish Porwal, DR Date of Hearing 25.09.2025 Date of Pronouncement 30.09.2025 आदेश / O R D E R Per Paresh M Joshi, J.M: This is an appeal filed by the assessee Under Section 253 of the Income Tax Act, 1961 (hereinafter referred to as the “Act” for sake of brevity) before this Tribunal. The assessee is aggrieved by the order bearing Number ITBA/NFAC/S/250/2023- 24/1059089386(1) dated 27.12.2023 passed by the Ld. CIT(A) u/s 250 of the Act which is hereinafter referred to as the “Impugned order”. The relevant Assessment Year is 2008-09 Printed from counselvise.com Radheyshyam ITA No.666/Ind/2024 - A.Y. 2008-09 Page 2 of 9 and the corresponding previous year period is from 01.04.2007 to 31.03.2008. 2. FACTUAL MATRIX 2.1 That as and by way of an assessment order dated 09.02.2016 passed u/s 144 r.w.s. 147 of the Act, the assessee’s total income exigible to tax was computed at Rs.12,85,000/-. The assessee had failed to furnish the Income Tax Return for the Assessment Year 2008-09 in compliance to the notice u/s 148. That the aforesaid assessment order dated 09.02.2016 is hereinafter referred to as the “impugned assessment order”. 2.2 That the assessee being aggrieved by the aforesaid “impugned assessment order” prefers the first appeal u/s 246A of the Act before the Ld. CIT(A) who by the “impugned order” has dismissed the 1st appeal of the assessee on the grounds and reasons stated therein. The core grounds and reasons for the dismissal of the 1st appeal was as under:- “5.1. In response to the notices issued during the appellate proceedings, the appellant did not submit his written submission. The appellant had not complied with the notices issued during the assessment proceedings. Hence, the case is being adjudicated on the basis facts available on record. 6. The issues were considered. The assessment order, grounds of appeal, and relevant provisions of law were carefully perused. The case is of A.Y. 2008-09 and tax effect involved is more than Printed from counselvise.com Radheyshyam ITA No.666/Ind/2024 - A.Y. 2008-09 Page 3 of 9 one lakh, hence, the proceedings initiated u/s 147 is found to be within the specified time limit and notice u/s 148 was issued after the necessary sanction of the competent authority. The contention of the appellant that the proceedings are bad in law is not found to be sustainable. Hence, Ground No. 1 is dismissed. 6.1. In Ground No. 2 to 4, the appellant challenged the addition of Rs. 12,85,000/-citing that the AO made the addition of the entire cash deposit in the bank account ignoring the outgoings from the Bank account. From the assessment order, it is apparent that the outgoings or withdrawals from the bank account are not in question. It is the cash deposit of Rs.12,85,000/-, which is required to be explained. The appellant had not explained the cash deposit before the AO during assessment proceedings resulting in an ex-parte order. Now, the appellant even during the appellate proceedings has not furnished any evidence or written submission explaining the sources of the cash deposits in the bank account concerned. Explanation to the satisfaction of the AO is necessary in the case where any cash deposits are found to be credited in the books of the appellant u/s 68 of the Act. As held in the assessment order, the appellant has furnished any explanation is. 6.2. In the case of Roshan Di Hatti v. CIT [1977] 107 ITR 938 (SC) and Kale Khan Mohammad Hanif v. CIT[1963] 50 ITR 1 (SC) the Hon'ble Supreme Court has stipulated that the onus of providing the source of a sum of money found to have been received by an assessee is on him. Where the nature and source of a receipt, whether it be of money or of other property, cannot be satisfactorily explained by the assessee, it is open to the revenue to hold that it is the income of the assessee and no further burden lies on the revenue to show that the income is from any particular source. TAX DEPAR 6.3. In view of the above, it is apparent that the cash deposits of Rs. 12,85,000/-were not satisfactorily explained either during the assessment proceedings or the appellate proceedings. Hence, I am not inclined to interfere with the decision of the Assessing Officer. Accordingly, above grounds of appeal No. 2 to 4 are dismissed. 7. In the result, the appeal is dismissed. Order passed under sec 250 read with sec. 251 of the Act”. Printed from counselvise.com Radheyshyam ITA No.666/Ind/2024 - A.Y. 2008-09 Page 4 of 9 2.3 That the assessee being aggrieved by the “impugned order” has preferred the instant second appeal before this Tribunal and has raised following grounds of appeal in the Form No.36 against the “impugned order” which are as follows:- “1. That the notice issued u/s 148 on the basis of reasons recorded u/s 147 be held to be bad in law and unjustified on the facts of the case 2. That the learned AO be held to have erred in assessing the entire cash deposits made in the Bank Account as income ignoring the outgoings from the Bank Account. 3. That the income assessed at Rs. 12,85,000/-and confirmed by the CIT(A) be held to be bad and unjustified on the facts and in the circumstances of the case. The income assessed be quashed and deleted. 4. In the alternative and without prejudice to the grounds stated above, the income assessed at Rs. 12,85,000/- be held to be high and exorbitant and may be reduced”. 3. Record of Hearing 3.1 The hearing in the matter took place before this Tribunal on 25.09.2025. None on behalf of the assessee has appeared, however with the help of Ld. DR the case has been heard. The Ld. AR for and on behalf of the assessee has filed a written submission before us and wherein it is contended that there is a delay of 190 days in preferring the present appeal before this Tribunal and in this regard we find an application seeking Printed from counselvise.com Radheyshyam ITA No.666/Ind/2024 - A.Y. 2008-09 Page 5 of 9 condonation of delay filed on record of this tribunal. It is averred therein that the assessee is an illiterate individual living in a remote village. He is ignorant about income tax laws and procedure. No return of income was filed by him. He is not having a PAN card. It averred further that he does not understand anything about e-proceedings and faceless assessment procedures and that he is not in the habit of viewing his e-mail on a daily basis. It is only when the assessee received the penalty order u/s 271(1)(c) of the Act dated 02.07.2024 that it came to his knowledge that the appeal filed against the assessment order u/s 147 r.w.s. 144 of the Act has been dismissed by the Ld. CIT(A). The assessee has averred that the delay is unintentional and that the same should be condoned. There was no malafide intention or willful negligence in filing the present appeal belatedly. It was finally requested that the delay may be condoned and present appeal be admitted. His affidavit dated 06.08.2025 is perused too in the support. Per contra we requested the Ld. DR to give his say to which he stated that the revenue has no objection if the delay is condoned. We therefore basis aforesaid condone the delay and admit the appeal. Printed from counselvise.com Radheyshyam ITA No.666/Ind/2024 - A.Y. 2008-09 Page 6 of 9 3.2 Thereafter we have carefully perused the written submission placed on record by the assessee which we reproduce as below:- “Your Honor, This is an appeal against the order u/s 250 r.w.s. 144/147 dated 27/12/2023 made by CIT(A), NFAC, Delhi. The appellant is an illiterate individual living in a remote village Sewada. He is a small-time trader in cloth, hosiery etc. doing business at Village Haats. He is having a Saving Bank A/c No. 3879000100041902 with Punjab National Bank, Ashta. The sales are made by the appellant in cash and the cash collections are deposited by him in the aforesaid Bank Account. The appellant has little knowledge about the Income Tax Law and its procedures and was therefore totally ignorant about it. He was not even having a PAN Card, During F.Y. 2007-08 the cash sales deposited by him in his aforesaid Bank Account were Rs.12,85,000/-. The cash deposited was utilized in making payments for purchases. All payments for purchases were made through cheques. The appellant is not maintaining accounts. Due to cash deposits in Bank, notice u/s 148 was issued on 19/03/2015. Later, notice u/s 142(1) was also issued. Due to his ignorance, no compliance was made by the assessee. The learned AO therefore completed the Assessment u/s 144 r.w.s.147 and assessed the total income of the appellant at Rs.12,85,000/-. Ignoring the out-flow from the aforesaid Bank Account all cash deposits were assessed as income. The assessment made is disputed. The appellant did not even record the date of service of the assessment order. Later, when the appellant contacted a counsel at Ashta with the assessment order, he was advised to file an appeal. Application for his PAN was made, and after receiving the PAN, an appeal before the CIT(A) was filed. Similarly, unaware about the e-proceedings and faceless assessment procedures the appellant was not in a habit to view his email regularly. Consequently, he missed the hearing notices and failed to comply with them. The Honourable CIT(A) subsequently completed the Appellate Proceedings u/s 250 r.w.s. 144/147 confirming the assessed total income of the appellant at Rs.12,85,000/-. Printed from counselvise.com Radheyshyam ITA No.666/Ind/2024 - A.Y. 2008-09 Page 7 of 9 Aggrieved with the appellate order, the appellant has filed this appeal before the Honourable ITAT, Indore Bench. It is feared that the appeal is out of time and therefore an application for condonation of delay is being made separately. It is requested that the delay may please be condoned and the appeal may kindly be admitted. It is submitted that since the Assessment Order u/s 144 r.w.s. 147 and the Appellate Order u/s 250 were both made ex-parte. In the interest of justice, it is humbly prayed that the case of the appellant be remanded back to either the Learned AO or the Learned CIT(A) to decide the matter afresh on the merits. This will provide a reasonable opportunity to the appellant to represent his case and will enable him to file all necessary documentary evidences and submissions. The appellant is inclined to fully cooperate in the assessment/ appellate proceedings”. Per contra in response to the above written submission of the assessee, the Ld. DR stated that the revenue has no objection if the matter is relegated back to the file of the Ld. A.O on denovo basis with direction to the assessee to provide all the information to the Ld. A.O and to cooperate with the department. 4. Observations,findings & conclusions. 4.1 We now have to decide the legality, validity and the proprietery of the “impugned order” basis records of the case and rival contentions canvassed before us. 4.2 We have carefully perused the records of the case as presented to this Tribunal by both the Ld. AR & the Ld. DR to Printed from counselvise.com Radheyshyam ITA No.666/Ind/2024 - A.Y. 2008-09 Page 8 of 9 determine the legality, validity of the “impugned order” basis law and by following the due process. 4.3 We basis records of the case and after hearing and upon examining the rival contentions are of the considered opinion that the “impugned order” should be set aside as both the assessee and Ld. DR seems to be on same page. We accordingly set aside the “impugned order” as and by way of remand back to the file of Ld. A.O on denovo basis with the direction to the assessee to give all the information to the Ld. A.O and to cooperate with the department. 5. Order 5.1 In view of the aforesaid the “impugned order” is set aside as and by way of remand back to the file of the Ld. A.O on denovo basis with the directions as aforesaid. 5.2 In the result appeal of the assesse is allowed for statistical purpose. Order pronounced in open court on 30.09.2025. Sd/- Sd/- (B.M. BIYANI) (PARESH M JOSHI) ACCOUNTANT MEMBER JUDICIAL MEMBER Indore िदनांक / Dated : 30.09.2025 Dev/Sr. PS Printed from counselvise.com Radheyshyam ITA No.666/Ind/2024 - A.Y. 2008-09 Page 9 of 9 Copies to: (1) The appellant (2) The respondent (3) CIT (4) CIT(A) (5) Departmental Representative (6) Guard File By order COPY Senior Private Secretary Income Tax Appellate Tribunal Indore Bench, Indore Printed from counselvise.com "