SAROJA GOURU,MIRYALAGUDA, NALGONDA V. INCOME TAX OFFICER, WARD-1, NALGONDA

ITA 1348/HYD/2024

AI Insights

The case involves Saroja Gouru, an individual who filed her Return of Income for the Assessment Year 2017-18, declaring a total income of Rs.6,69,319. Her return was selected for scrutiny under the 'Limited' category due to large value cash deposits during the demonetisation period. The Assessing Officer found that Saroja had deposited Rs.9.25 lakhs in her bank account during this period and added this amount to her income under section 69A of the Income Tax Act, citing insufficient evidence to support the source of the deposit. The assessee's appeal to the Commissioner of Income Tax (Appeals) was unsuccessful, leading her to appeal to the Income Tax Appellate Tribunal. The Tribunal decided to set aside the previous orders and remand the case back to the Ld. AO for a fresh examination, emphasizing the need to uphold natural justice and provide the assessee an opportunity to substantiate her claims.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 29003 (ITAT-HYDERABAD)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-01-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SM-A
• Assessment Year: 2017-2018
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: NITIN G INAMDAR
• Keywords: Set aside; Additional evidence; Corroborative evidences

Judgement Text

" आयकर अपीलीय अधिकरण, हैदराबाद पीठ IN THE INCOME TAX APPELLATE TRIBUNAL Hyderabad ‘A’ Bench, Hyderabad BEFORE SHRI VIJAY PAL RAO, VICE PRESIDENT AND SHRI MADHUSUDAN SAWDIA, ACCOUNTANT MEMBER आ.अपी.सं /ITA No.1348/Hyd/2024 (निर्धारण वर्ा/Assessment Year:2017-18) Saroja Gouru, Nalgonda. PAN:AEFPG5981H Vs. Income Tax Officer, Ward-1, Nalgonda. (Appellant) (Respondent) निर्धाररती द्वधरध/Assessee by: Shri Nitin G Inamdar, C.A. रधजस् व द्वधरध/Revenue by:: Shri Srikanth Reddy Y, SR-DR सुिवधई की तधरीख/Date of hearing: 20/01/2025 घोर्णध की तधरीख/Pronouncement: 22/01/2025 आदेश/ORDER PER MADHUSUDAN SAWDIA, A.M.: This appeal is filed by Saroja Gouru (“the assessee”), feeling aggrieved by the order passed by the Learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi (“Ld. CIT(A)”), dated 11.11.2024 for the A.Y. 2017-18. 2. The brief facts of the case are that, the assessee is an individual deriving income from house property, income from partnership firms and other sources, filed her Return of Income (“ROI”) for the A.Y. 2017-18 on 02.03.2018 declaring a total income of Rs.6,69,319/-. The return was selected for scrutiny ITA No.1348/Hyd/2024 2 under CASS in ‘Limited’ category to examine “Large value cash deposits during the demonetisation period as compared to the returned income’. During the assessment proceedings, the Learned Assessing Officer (“Ld. AO”) found that the assessee has deposited cash of Rs.9.25 lakhs in her S.B. Account with State Bank of India during demonetisation period. The Ld. AO completed the assessment u/s.143(3) on 13.12.2019 by making addition of Rs.9.25 lakhs u/s.69A of the Act in the hands of the assessee, contending that sufficient supporting evidences in support of cash deposit were not produced by the assessee. 3. Aggrieved with the order of Ld. AO, the assessee filed appeal before the Ld. CIT(A). The Ld. CIT(A) upholding the addition made by the Ld. AO, dismissed the appeal of the assessee. 4. Aggrieved with the order of Ld. CIT(A), the assessee is in appeal before us. The Learned Authorised Representative (“Ld. AR”) submitted that, the assessee explained before the Ld. AO that, she had deposited cash in bank out of loan received from Mr. Gouru Sumanth and filed a confirmation letter from Mr. Gouru Sumanth in support of the loan so taken. However, the Ld. AO without calling for any additional evidence, made the addition in the hands of the assessee contending that sufficient evidences were not provided by the assessee. The Ld. AR further submitted that, the Ld. AO has made the addition without providing sufficient opportunity to prove the genuineness of the transaction. He also submitted that, if an opportunity be granted, the assessee is ready to file further evidence, as required ITA No.1348/Hyd/2024 3 by the Ld. AO, to substantiate the genuineness of the transaction. Accordingly, the Ld. AR prayed before the bench to set aside the issue to the file of Ld. AO for fresh examination. 5. Per contra, Ld. DR placed heavy reliance on the orders of the Revenue authorities and submitted that, sufficient opportunity has already been given by the Revenue authorities, but the assessee failed to avail the same. He opposed the grant of further opportunity to the assessee. 6. We have heard the rival contentions and also gone through the record in the light of the submissions made by either side. It could be seen from the orders of Ld. AO that, the addition has been caused due to lack of sufficient supporting evidences in support of the sources of deposit of cash of Rs. 9,25,000/- in the bank account of the assessee. It is a fact that the assessee does not stand to gain by not producing the necessary information/documents and prosecute her case on merits. Be that as it may, now the assessee is ready to produce all information/documents and get the matter disposed of on merits. The highest that would happen by allowing an opportunity to the assessee is that a cause would be decided on merits. With this view of the matter and considering the principle of natural justice, we are of the view that fresh opportunity should be given to the assessee. Accordingly, we set aside the impugned order and restore the issue to the file of the Ld. AO for passing a fresh order on merits after affording the opportunity of hearing to the assessee. Grounds of appeal are answered accordingly. ITA No.1348/Hyd/2024 4 7. In the result, the appeal of the assessee is allowed for statistical purpose. Order pronounced in the open Court on 22nd Jan., 2025. Sd/- Sd/- (VIJAY PAL RAO) (MADHUSUDAN SAWDIA) VICE PRESIDENT ACCOUNTANT MEMBER Hyderabad. Dated: 22.01.2025. * Reddy gp Copy of the Order forwarded to : 1. Gouru Saroja, 18-747, Ashok Nagar, Miryalaguda, Miryalaguda H.O., Edulagudem, Nalgonda-508 207 2. ITO, Ward-1, Nalgonda. 3. Pr.CIT, Hyderabad. 4. DR, ITAT, Hyderabad. 5. Guard file. BY ORDER, "