RAM KUMAR PRASAD,AURANGABAD V. ITO, WARD-3(3), AURANGABAD, AURANGABAD

ITA 697/PAT/2024

AI Insights

The case involves Ram Kumar Prasad, the proprietor of M/s. Kumar Gas Agency, who appealed against the order of the Commissioner of Income Tax (Appeals) at the National Faceless Appeal Centre. The appeal was against the addition of Rs.10,15,500, which was added to the assessee's income due to cash deposits in his bank account during the demonetization period, and an estimated profit of Rs.10,23,797. The Tribunal noted that both the initial assessment and the CIT(A)'s order were ex parte. The assessee's counsel argued that the cash deposits were from the sale proceeds of the business, which is a government-controlled LPG gas agency, and that the assessee maintained proper books of account. The Tribunal decided to set aside the CIT(A)'s order and remand the case back to the Assessing Officer for a fresh assessment, providing the assessee an opportunity to explain the sources of the deposits and the profits from the business.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 471222 (ITAT-PATNA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-02-2025
• 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
• 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.: 697/PAT/2024 Assessment Year: 2017-18 Ram Kumar Prasad ………….. Appellant M/s. Kumar Gas Agency, Anugrah Narayan Road, Jamhor, Aurangabad, Bihar-824101. (PAN: APQPP8490Q) Vs. ITO, Ward-3(3), Aurangabad .............. Respondent Appearances: Appellant represented by: Shri Abhi Sarkar, Advocate Respondent represented by: Shri Ashwani Kumar, Sr. DR Date of concluding the hearing : 12.02.2025 Date of pronouncing the order : 12.02.2025 ORDER The captioned appeal has been preferred by the assessee against the order dated 27.09.2023 of the Ld. Commissioner of Income Tax (Appeal), National Faceless Appeal Centre (NFAC) [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. Appeal of the assessee is time barred by 384 days. A separate application for condonation of delay has been filed. After considering the averments made in the application, I condone the delay in filing the appeal. 3. The assessee in this appeal is aggrieved by the action of the Ld. CIT(A) in confirming the addition of Rs.10,15,500/- on account of cash deposit in the bank account of the assessee during demonetization period and further estimation of profits at Rs.10,23,797/-. 4. At the outset, Ld. Counsel for the assessee has submitted that in this case, the impugned assessment order is an ex parte/best judgment I.T.A. No.: 697/PAT/2024 Ram Kumar Prasad, AY : 2017-18 Page 2 of 3 assessment order passed u/s. 144/147 of the Act. He has further submitted that even the impugned order of the Ld. CIT(A) is an ex parte order. The Ld. Counsel for the assessee has further submitted that the aforesaid cash deposits were out of the sale proceeds of the business of the assessee, the same being the LPG gas agency of Bharat Petroleum Corporation Ltd. under the name and style of M/s. Kumar Gas Agency. It has further been pleaded that the assessee maintains books of account and even the business of gas agency is also controlled by the Government. That the assessee can duly explain the source of deposit as well as the profits from the business. He, has, therefore, pleaded that the assessee may be given an opportunity to represent his case before the Assessing Officer. 5. Considering the above submissions of the Ld. Counsel for the assessee and considering the facts of the case, I am of the view that the interests of justice will be well served if, the assessee is given an opportunity to present his case before the Assessing Officer. Accordingly, the impugned order of the Ld. CIT(A) is set aside. The matter is restored to the Assessing Officer for assessment afresh on this issue in accordance with law. 6. In the result, the appeal of the assessee is treated as allowed for statistical purposes. Order pronounced in the open Court. Sd/- [Sanjay Garg] Judicial Member Dated: 12.02.2025 J.Dey (Sr. P.S.) I.T.A. No.: 697/PAT/2024 Ram Kumar Prasad, AY : 2017-18 Page 3 of 3 Copy of the order forwarded to: 1. Appellant : Shri Ram Kumar Prasad 2. Respondent : ITO, Ward-3(3), Aurangabad 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 "