RANN VIJAY SINGH,TEH. NAKODAR JALANDHAR V. INCOME TAX OFFICER, NAKODAR

ITA 299/ASR/2024

AI Insights

The case involves an appeal by Rann Vijay Singh against the order of the CIT(A) National Faceless Appeal Centre, which upheld the addition of Rs.31,63,000 to the assessee's income as unexplained cash deposits under section 69A of the Income Tax Act, 1961. The initial assessment was completed ex-parte under sections 144/147 due to non-compliance and lack of response from the assessee, who cited medical reasons for his absence. The CIT(A) dismissed the appeal for want of submissions, leading to the current appeal before the Tribunal. The Tribunal considered the medical conditions of the assessee and the lack of adjudication on merits, deciding to remand the case for a fresh assessment.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 31099 (ITAT-AMRITSAR)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-01-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2012-2013
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Set aside
• Section: 147; 250; 69A

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL AMRITSAR BENCH, AMRITSAR (VIRTUAL COURT) BEFORE SH. UDAYAN DASGUPTA, JUDICIAL MEMBER AND SH. KRINWANT SAHAY, ACCOUNTANT MEMBER I.T.A. No. 299/Asr/2024 Assessment Year: 2012-13 Rann Vijay Singh, Teh. Nakodar, Jalandhar [PAN: BWDPS 6008L] (Appellant) Vs. Income Tax Officer, Nakodar (Respondent) Appellant by Respondent by : : Sh. Sandeep Vijh, C.A. Sh. Davinder Pal Singh, Sr. DR Date of Hearing Date of Pronouncement : : 19.12.2024 09.01.2025 ORDER Per Udayan Dasgupta, J.M.: This appeal is filed by the assessee against the order of the ld. CIT(A) National Faceless Appeal Centre (NFAC) Delhi dated 19.03.2024 passed u/s 250 of the Income Tax Act, 1961 which has arisen out of the order of ITO, Ward, Nakodar. 2. Grounds of appeal taken by the assessee in Form No. 36 are as under: “1. That the order of the ld. CIT(A) dated 19.03.2024 deserves to be set aside and restored to the file of CIT(A) as the request for adjournment of the hearing of appeal 2 I.T.A. No.299/Asr/2024 Rann Vijay Singh v. ITO was not properly appreciated and the appeal was decided without intimating the fresh date of hearing. 2. That the ld. CIT(A) has erred in upholding the addition of Rs.31,63,000/- made u/s 69A towards alleged unexplained cash deposits in the bank account. The dismissal of appeal for want of submissions was not justified particularly when this was due to medical reasons. 3. That the ld. CIT(A) has erred in confirming the levy of interest u/s 234B, 234C and 234D.” 3. The brief facts of the assessee are that the assessee has deposited an amount of Rs.31,63,000/- in his Savings bank account at State Bank of Patiala during the financial year 2011-12 relevant to the year under appeal. Proceedings were initiated u/s 147 after obtaining necessary approval from higher authorities but there has not been any compliance from the assessee even though the notices were duly served through e-mail and the assessee has sought adjournment on one such occasion. In absence of any compliance or any response from the assessee and in absence of any explanations regarding the cash deposits at Rs. 31.63 lacs in his bank account, the assessment was completed ex-parte u/s 144/147 by making an addition of Rs.31,63,000/- to the total income. 4. The matter was carried in appeal before the ld. CIT(A) and it is seen from the appellate order that the notices has been issued from the office of the ld. first appellate authority on four different dates of hearing against which the assessee has sought adjournment on two occasions but no submissions or written explanations has been filed before the ld. CIT(A) on merits of the case. As such, in absence of any 3 I.T.A. No.299/Asr/2024 Rann Vijay Singh v. ITO compliance from the assessee, the ld. CIT(A) has dismissed the said appeal without adjudication on merits of the case. 5. Now, the assessee is in appeal before the Tribunal on the grounds contained in the Memorandum of Appeal. The ld. AR submits that the assessee is suffering from Obsessive Compulsive disorder and other non-organic psychotic disorder which is evidenced by the doctor’s certificate. The ld. AR of the assessee has also furnished medical certificates and documents from Sareen Health Care Centre, Jalandhar, and an affidavit was also filed by the assessee himself stating the fact that he is suffering from a chronic psychotic disorder. Even though he has applied and prayed for adjournment from the appellate authority he could not subsequently represent his case along with all papers and documents before the ld. CIT(A), because of his medical issue resulting in the appeal being dismissed. 6. The ld. AR further submitted that the ld. CIT(A) has disposed of the appeal without considering the application for adjournment and considering the fact that the assessment has also been passed ex-parte because at that particular period of time, the assessee was medically unwell, he prays that an opportunity may please be allowed to the assessee for explaining the credits in the bank account with supporting documents. 7. The ld. DR relied on the order of the ld. CIT(A) and stated that in spite of repeated opportunities, the assessee has not been able to explain the source of cash 4 I.T.A. No.299/Asr/2024 Rann Vijay Singh v. ITO deposited by him in his bank account and has not produced any documentary evidences neither before the Assessing Officer, nor before this first appellate authority and has not even stated as to the nature of source thereof. He further stated that the assessee has been intentionally avoiding to appear and explain his case before the department, and prays that the order of the ld. CIT(A) may please be sustained. 8. We have considered the rival submissions and considered the materials on record and the medical prescriptions and the doctors certificate filed before us where the assessee is suffering from “non-organic phychotic disorder” since May, 2023 as evident from the prescriptions and we also find that the cash of Rs.31,63,000/- which has been deposited in the State Bank of India, Patiala in account number xxxxxx19826 by the assessee during the financial year 2011-12 needs to be explained and the source of such deposits is required to be proved to the satisfaction of the AO by production of necessary papers, documents and supporting books of account if any. We also note that the ex-parte order has been passed at the assessment stage and also before the first appellate authority and as such in the fitness of things and in the interest of justice, we remand the matter back to the files of the Assessing Officer for fresh assessment on merits of the case after examining all papers and documents to be produced by the assessee in support of his explanations of the cash deposits in the bank account to the full satisfaction of the Assessing Officer and we direct the 5 I.T.A. No.299/Asr/2024 Rann Vijay Singh v. ITO asseseee to fully co-operate in the fresh assessment proceedings and to file all necessary documentary evidences and explain the source and the nature of the said cash deposits in bank account. 9. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced in accordance with Rule 34(4) of the Income Tax (Appellate Tribunal) Rules, 1963 as on 09.01.2025 Sd/- Sd/- (Krinwant Sahay) (Udayan Dasgupta) Accountant Member Judicial Member *GP/Sr.PS* Copy of the order forwarded to: (1)The Appellant: (2) The Respondent: (3) The CIT concerned (4) The Sr. DR, I.T.A.T True Copy By Order "