SHIRISH SINGH TEHRA,NANDED V. INCOME TAX OFFICER, WARD 1, NANDED

ITA 2040/PUN/2024

AI Insights

The case involves Shirish Singh Tehra, the proprietor of Tehra Tyres, who appealed against the orders of the CIT(A) / NFAC, Delhi, for the assessment years 2014-15, 2015-16, and 2016-17. The appeals were consolidated due to identical grounds raised. The primary issue was the non-disclosure of substantial cash deposits amounting to Rs.1,33,28,575 in the assessee's bank account, which led to the reopening of assessments under section 147 of the Income Tax Act, 1961. The Assessing Officer added these amounts under section 68 of the Act, citing unexplained cash credits. The CIT(A) upheld these additions due to the assessee's non-compliance in providing satisfactory explanations. The Tribunal, considering the circumstances, decided to remand the matter back to the Assessing Officer, granting the assessee a final opportunity to explain the source of the deposits.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 32504 (ITAT-PUNE)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-01-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2015-2016
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ARVIND DESAI; ADDL
• Assessee Lawyers: RAJESH A. ATHAVALE
• Keywords: Opportunity of being heard
• Section: 68

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH “B”, PUNE BEFORE SHRI R. K. PANDA, VICE PRESIDENT AND MS. ASTHA CHANDRA, JUDICIAL MEMBER ITA Nos.2040, 2041 & 2065/PUN/2024 Assessment years : 2015-16, 2016-17 & 2014-15 Shirish Singh Tehra Tehra Tyres, Station Road, Nanded - 431602 Vs. ITO, Ward 1, Nanded PAN: AANPT8347G (Appellant) (Respondent) Assessee by : Shri Rajesh A. Athavale Department by : Shri Arvind Desai, Addl CIT DR Date of hearing : 30-01-2025 Date of pronouncement : 30-01-2025 O R D E R PER BENCH: The above three appeals filed by the assessee are directed against the separate orders dated 29.07.2024 of the Ld. CIT(A) / NFAC, Delhi relating to assessment years 2015-16, 2016-17 and 2014-15, respectively. Since identical grounds have been raised in all the 3 appeals, therefore, these were heard together and are being disposed of by this common order for the sake of convenience,. 2. First we take up ITA No.2040/PUN/2024 for assessment year 2015-16 as the lead case. Facts of the case, in brief, are that the assessee is an individual and has filed his return of income on 10.02.2016 declaring total income of Rs.5,59,710/-. Information was available with the department that the assessee has deposited huge 2 ITA Nos.2040, 2041 & 2065/PUN/2024 cash to the tune of Rs.1,33,28,575/- in the bank account maintained with M/s. Shri Renuka Mata Multi State Urban Cooperative Credit Society Ltd. On going through the return of income filed by the assessee, the Assessing Officer noted that the assessee has not taken into account the above amount of cash deposit. The Assessing Officer, therefore, after recording the reasons, reopened the assessment u/s 147 on the ground that the cash deposited amounting to Rs.1,33,28,575/- has escaped assessment. The assessee made part compliance to the statutory notices issued by the Assessing Officer. However, the assessee could not substantiate with evidence to the satisfaction of the Assessing Officer regarding the source of such cash deposits. The Assessing Officer, therefore, completed the assessment determining the total income of the assessee at Rs.1,40,18,535/- by making addition of Rs.1,33,28,575/- u/s 68 of the Income Tax Act, 1961. Similar addition of Rs.41,40,865/- was made by the Assessing Officer for assessment year 2016-17 and Rs.58,14,766/- for assessment year 2014-15. 3. The assessee filed appeals before the Ld. CIT(A) / NFAC for all the above three years. However, despite number of opportunities granted by the Ld. CIT(A) / NFAC, there was no compliance from the side of the assessee for which the Ld. CIT(A) / NFAC upheld the action of the Assessing Officer and dismissed all the appeals filed by the assessee for the above three years vide separate orders. 3 ITA Nos.2040, 2041 & 2065/PUN/2024 4. Aggrieved with such order of the Ld. CIT(A) / NFAC, the assessee is in appeal before the Tribunal challenging the order of the Ld. CIT(A) / NFAC in confirming the additions made by the Assessing Officer for the respective years. 5. We have heard the rival arguments made by both the sides and perused the orders of the Assessing Officer and Ld. CIT(A) / NFAC. It is an admitted fact that due to non-compliance before the Assessing Officer, he made addition u/s 68 of the I.T. Act, 1961 for the above three years being the amount of cash deposited in the bank account maintained with M/s. Shri Renuka Mata Multi State Urban Cooperative Credit Society Ltd. on the ground that the assessee did not explain the nature and source of such cash deposits. We find despite number of opportunities granted by the Ld. CIT(A) / NFAC, the assessee did not make any submission for which the Ld. CIT(A) / NFAC upheld the addition made by the Assessing Officer. It is the submission of the Ld. Counsel for the assessee that given an opportunity, the assessee is in a position to substantiate his case by filing the requisite details with evidence to the satisfaction of the Assessing Officer regarding the nature and source of such cash deposits made in the bank account. Considering the totality of the facts of the case and in the interest of justice, we deem it proper to restore the issue to the file of the Assessing Officer with a direction to grant one final opportunity to the assessee to substantiate his case by filing the requisite details to his satisfaction and decide the issue as per fact and law after giving due opportunity of being heard to the assessee. The assessee is also hereby directed to 4 ITA Nos.2040, 2041 & 2065/PUN/2024 make his submission, if any, before the Assessing Officer on the appointed date without seeking any adjournment under any pretext, failing which the Assessing Officer is at liberty to pass appropriate order as per law. We hold and direct accordingly. The grounds raised by the assessee are accordingly allowed for statistical purposes for all the three years. 6. In the result, all the three appeals filed by the assessee are allowed for statistical purposes. Order pronounced in the open Court on 30th January, 2025. Sd/- Sd/- (ASTHA CHANDRA) (R. K. PANDA) JUDICIAL MEMBER VICE PRESIDENT पुणे Pune; दिन ांक Dated : 30th January, 2025 GCVSR आदेश की प्रतितिति अग्रेतिि/Copy of the Order is forwarded to: 1. अपीलार्थी / The Appellant; 2. प्रत्यर्थी / The Respondent 3. 4. The concerned Pr.CIT, Pune DR, ITAT, ‘B’ Bench, Pune 5. गार्ड फाईल / Guard file. आदेशानुसार/ BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अधिकरण ,पुणे / ITAT, Pune 5 ITA Nos.2040, 2041 & 2065/PUN/2024 S.No. Details Date Initials Designation 1 Draft dictated on 30.01.2025 Sr. PS/PS 2 Draft placed before author 30.01.2025 Sr. PS/PS 3 Draft proposed & placed before the Second Member JM/AM 4 Draft discussed/approved by Second Member AM/AM 5 Approved Draft comes to the Sr. PS/PS Sr. PS/PS 6 Kept for pronouncement on Sr. PS/PS 7 Date of uploading of Order Sr. PS/PS 8 File sent to Bench Clerk Sr. PS/PS 9 Date on which the file goes to the Head Clerk 10 Date on which file goes to the A.R. 11 Date of Dispatch of order "