SHANKAR LAL SHARMA,JAIPUR V. ITO WD 7(1), JPR, JAIPUR

ITA 537/JPR/2025

AI Insights

The case involves Shankar Lal Sharma, the appellant, who challenged the assessment order for the year 2015-16 before the Income Tax Appellate Tribunal, Jaipur. The initial assessment by the Assessing Officer included unexplained cash deposits and discrepancies in reported income from the sale of agricultural land. The CIT(A) upheld the assessment order after the appellant failed to comply with multiple notices. The Tribunal, considering the circumstances and the importance of the issues involved, decided to remand the case back to the CIT(A) for a fresh decision, emphasizing the need for a fair hearing.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 712365 (ITAT-JAIPUR)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-07-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Assessment Year: 2015-2016
• Laws Referred To: Income Tax Act
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: ANITA RINES H
• Assessee Lawyers: KOMAL HARSH
• Keywords: Set aside; Opportunity of being heard; Non compliance
• Section: 148; 144; 142(1)

Judgement Text

"vk;dj vihyh; vf/kdj.k] t;iqj U;k;ihB] t;iqj IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES,”A-Bench” JAIPUR Jh xxu xks;y] ys[kk lnL; ,oa Jh ujsUnz dqekj] U;kf;d lnL; ds le{k BEFORE: SHRIGAGAN GOYAL, AM & SHRI NARINDER KUMAR, JM vk;dj vihyla-@ITA No. 537/JPR/2025 fu/kZkj.k o\"kZ@Assessment Year : 2015-16 Shankar Lal Sharma S/o Shri Nanu Ram Sharma, 282, Pipalya Valli Ki dhani, Fatehpura (Banas) Via-Samod, Chomu, Jaipur. cuke Vs. The ITO, Ward-7(1), Jaipur. LFkk;hys[kk la-@thvkbZvkjla-@PAN/GIR No.: FWWPS6943H vihykFkhZ@Appellant izR;FkhZ@Respondent fu/kZkfjrh dh vksj ls@Assessee by : Ms. Komal Harsh, Adv. jktLo dh vksj ls@Revenue by: Mrs. Anita Rinesh, JCIT, Sr. DR lquokbZ dh rkjh[k@Date of Hearing :29/07/2025 mn?kks\"k.kk dh rkjh[k@Date of Pronouncement: 30/07/2025 vkns'k@ORDER Per: NARINDER KUMAR, JUDICIAL MEMBER . Appellant-assessee challenged, by filing an appeal before Learned CIT(A), National Faceless Appeal Centre, Delhi, assessment order dated 29.03.2023, relating to the assessment year 2015-16,. Learned CIT(A) dismissed the appeal and upheld the assessment order, while observing that the assessee had failed to furnish material in Printed from counselvise.com 2 ITA No. 537/JPR/2025 Sh. Shankar Lal Sharma, Jaipur. support of his claim put forth before the Assessing Officer or in the appellate proceedings. That is how, the assessee is before this Appellate Tribunal. 2. Arguments heard. File perused. 3. In the course of arguments the only submission put forth by Ld. AR for the appellant is that the assessee-appellant remained non compliant before Learned CIT(A) and that the matter may be restored to the files of Learned CIT(A) for decision afresh while affording an opportunity of being heard to the appellant. 4. A perusal of assessment order dated 29.03.2023 would reveal that case of the assessee was reopened and notice u/s 148 of the Act was issued to the assessee. Said notice was followed notices u/s 142(1) of the Act, but, the assessee neither furnished any return nor any explanation. Accordingly, the Assessing Officer proceeded further by issuing show cause notice u/s 144 of the Act. In response to the said notice, the assessee submitted reply on 20.03.2023 along with certain documents. After considering the material available, the Assessing Officer recomputed the income of the assessee at Rs. 53,73,000/- by making addition of Rs. 50,70,500/-, due to the reason that the assessee was found to have sold agriculture land amounting to Rs. 7,81,000/-, but in the Return Printed from counselvise.com 3 ITA No. 537/JPR/2025 Sh. Shankar Lal Sharma, Jaipur. of Income filed, in response to the notice u/s 148 of the Act shown income of Rs. 3,02,500/-. As regards cash deposit, the Assessing Officer observed that on going through the bank statement submitted by the appellant, it transpired that he had deposited Rs. 58,81,500/- in cash in his bank account during the year under consideration, and further that out of the said amount, a sum of Rs. 50,70,500/- towards cash deposit remained unexplained. 5. When the matter came up before Learned CIT(A), four notices dated 20.02.2025, 28.02.2025, 07.03.2025 and 17.03.2025 were issued by the office of Learned CIT(A) to the appellant, but, he failed to comply with the said notices or to avail of opportunity of being heard. Ultimately, Learned CIT(A), upheld the assessment order and dismissed the appeal. 6. As regards non appearance before Learned CIT(A), Form 35 reveals that the appellant had furnished email address and opted for service of notices/communications at the said email ID. It is not a case of the appellant that four notices were not served upon him at the said email address. In the given situation, when the appellant remained non compliant with four notices, having regard to the issue involved in the appeal, which arose out of the assessment order, we deem it a fit case to restore the appeal to the files of Learned CIT(A). Printed from counselvise.com 4 ITA No. 537/JPR/2025 Sh. Shankar Lal Sharma, Jaipur. Result 7. As a result, in view of the above discussion and findings, the impugned order passed by Learned CIT(A) is set aside, and while disposing of the appeal for statistical purposes, the matter is remanded to Learned CIT(A) for decision afresh, after providing reasonable opportunity of being heard to the assessee. 8. Since the applicant failed to fully comply with directions issued by Learned CIT(A), despite opportunities, applicant is burdened with costs of Rs. 4000/-, to be deposited in “Prime Minister’s National Relief Fund”. The applicant to deposit costs and produce the receipts before Learned CIT(A) before commencement of the proceedings on remand. Order pronounced in the open court on 30/07/2025. Sd/- Sd/- ¼xxu xks;y½ ¼ujsUn dqekj½ (GAGAN GOYAL) (NARINDER KUMAR) ys[kk lnL; @Accountant Member U;kf;d lnL;@Judicial Member Tk;iqj@Jaipur fnukad@Dated:- 30/07/2025 *Santosh vkns'k dh izfrfyfi vxzsf’kr@Copy of the order forwarded to: 1. The Appellant- Sh. Shankar lal Sharma, Jaipur. 2. izR;FkhZ@ The Respondent- ITO, Ward-7(1), Jaipur. 3. vk;dj vk;qDr@ Theld CIT Printed from counselvise.com 5 ITA No. 537/JPR/2025 Sh. Shankar Lal Sharma, Jaipur. 4. foHkkxh; izfrfuf/k] vk;dj vihyh; vf/kdj.k] t;iqj@DR, ITAT, Jaipur 5. xkMZQkbZy@ Guard File ITA No. 537/JPR/2025) vkns'kkuqlkj@ By order, lgk;d iathdkj@Asstt. Registrar Printed from counselvise.com "