SHREE KARNI EDUCATION TRUST ,JAM KHAMBHALIA V. ITO EXEMPTION WARD 2 , RAJKOT

ITA 208/RJT/2024

AI Insights

The case involves Shree Karni Education Trust, which appealed against the order of the Commissioner of Income Tax (Appeals) concerning the Assessment Year 2012-13. The appeal was directed against an order passed by the Assessing Officer under section 144 of the Income Tax Act, 1961, which added Rs. 21,94,000 as unexplained cash credit under section 69A. The primary contention was the lack of proper notice and opportunity to present their case, as the assessee argued that notices were sent to an incorrect PAN. The Tribunal noted the non-cooperative attitude of the assessee but granted one more opportunity to present the case before the lower authority.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 473101 (ITAT-RAJKOT)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-03-2025
• 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
• Department Lawyers: ABHIMANYU SINGH YADAV; LD.
• Assessee Lawyers: R.B. GOHIL; LD
• Keywords: Set aside; Unexplained cash credit; Principle of natural justice
• Section: 147; 148; 144; 142(1); 250

Judgement Text

" Page | 1 IN THE INCOME TAX APPELLATE TRIBUNAL, RAJKOT BENCH, RAJKOT BEFORE DR. ARJUN LAL SAINI, AM. & DINESH MOHAN SINHA, JM आयकरअपीलसं./ITA No.208/RJT/2024 \u000bनधा\u000fरणवष\u000f / Assessment Year: (2012-13) (Hybrid Hearing) Shree Karni Education Trust Little Star School, Bunglavadi, Shreeji Park, Near Telephone Exchange, Jamkhambhalia, Devbhumi Dwarka - 361305 Vs. ITO EXEMPTION WARD- 2. Aaykar Bhawan, Race Course, Ring Road, Income Tax Exemption Ward-2, Rajkot - 360001 \u0013थायीलेखासं./जीआइआरसं./PAN/GIR No.: AACTS1423R (Appellant) (Respondent) Appellant by : Shri R.B. Gohil, Ld. AR Respondent by : Shri Abhimanyu Singh Yadav, Ld. SR. DR Date of Hearing : 18 /03/2025 Date of Pronouncement : 19 /03/2025 आदेश / O R D E R PER DINESH MOHAN SINHA JM; Captioned appeal filed by assessee pertaining to Assessment Year 2012- 13, is directed against order passed by Commissioner Of Income Tax (Appeal), Page | 2 vide order dated 23/02/2024, which in turn arises out of an order passed by the Assessing Officer dated 30/11/2019 u/s 144of the Income Tax Act, 1961. 2. GROUNDS OF APPEALS:- 1. Learned AO erred in law and on facts in making the addition of Rs. 21, 94,000 being the amount deposited in bank account as unexplained cash credit u/s 69A. 2. Learned. AO erred in law and on facts in passing order u/s 144 before disposal of our letter for dropping proceeding u/s 148 and 143(3). 3. Learned AO erred in law and on facts in passing order without communicating any notices in spite of the facts that we have provided new address and our email and same are in the records of learned AO. 4. Learned AO has violated principle of natural justice so the order passed to be set aside, 5. Learned AO eared in law and in facts in passing order u/s 144 without serving any notice u/s 142(1). 6. Learned AO has not given enough opportunity to heard before passing order. 7. Learned AO eared in law as well as in facts for invoking proceeding u/s 271(1) (c). 8. Learned AO earned in law as well as in facts for addition of total credit in bank account inspite of the fact that same are already incorporated in the other PAN 9. any other additional ground in the beni t of the assessee 3. Facts of the Case as recorded by The Ld CIT(A) “The assessee – Trust had not filed its return of income for A.Y. 2012-13. In this case, it was gathered from the ITS details that during F.Y. 2011-12, the assessee-trust has made cash deposit of Rs.14,88,500/- in the Savings Bank A/c maintained with the Axis Bank Ltd and Rs.7,05,500/- in the HDFC Bank Ltd. In absence of the return of income, the source of the cash deposit remained unexplained. The case was reopened u/s. 147 of the Act. Notice u/s. 148 of the Act was issued on 23.03.2019 and duly served upon the assessee by affixture on 28.03.2019. Subsequently, noticed u/s. 142(1) was issued from time to time but the assessee has not bothered to furnish any details/ explanation in this regard. ” Page | 3 4. The Ld AO pass an order with following observation. “ I find no merit in the grounds of appeal taken by the appellant and accordingly the same are rejected/dismissed.” 5. That the assessee filed an appealagainst the order of assessment before Ld CIT(A). That said appeal was disposed of by Ld. CIT(A) with following observation. \"In absence of any explanation/ details, the entire cash deposit in both the banks to the tune of Rs. 21,94,000/- remained unexplained in the hands of the assessee. In absence of any satisfactory explanation, total cash deposit amounting to Rs. 21,94,000/- made in the bank accounts maintained with Axis Bank Ltd and HDFC Bank Ltd. is treated as unexplained in the hands of the assessee and added to its total income. The appellant was given the opportunity to present its case and submit documents/ submission in support of its appeal. Notices u/s 250 of the Act were issued, however, the appellant did not comply with these notices. The details of notices issued u/s 250 of the Act are as under: I find no merit in the grounds of appeal taken by the appellant and accordingly the same are rejected/dismissed.\" 6. That the assessee field an appeal against the impugned order dated 23.02.2024of the Ld CIT(A) before us. (i) During thecourse of hearing the Ld AR has submitted that the assessee couldnot comply with the direction of the notice issued byLd CIT(A).Because the assessee is working on PAN NO. AATK1912D and all notices sent on different PAN NO. AACTS1423R.ThatLd AR further Page | 4 requested that an opportunity may kindly be provided to explain the case beforethe lower Authority. (ii) On thecontrary the Ld DR hasrelied on the order of the Ld CIT(A) and submitted that number of notice were issued to the assesseefor compliance but assessee fail to submit the replay. Due opportunity were provided to the assessee. However Ld DR has not objected to the request of the assessee for granting an opportunity to explain the case. 7. We have heard both therepresentative of the party and perused all the material available on record before us.TheLdCIT(A) has given the opportunity to present case and submit documents/ submission in support of claim in appeal. Notices u/s 250 of the Act were issued. However, the appellant did not comply with these notices issued on dated, 01.02.2021, 12.04.2023, 14.02.2024.That theLd CIT(A) has dismissed the appeal of the assessee stating that the assessee could not disapprove the finding of theLd AOin the appellate proceedings.The Ld CIT has decided the case ex-party. We note that the assessment order framed byLd AO. is also ex-party u/s 144 of the Act. We note that the assessee could not attend the hearing because of two PAN NO. and could not get the proceedings in one PAN NO. We note that the assessee has a non Co-Operative attitude. Hence we direct the assessee to deposit a cost of Rs. 10,000/- in the P.M. relief fund within 10 days from today and the receipt of the same should be placed on record. We are of the view that the request of the Ld AR asking for one opportunity to present the case before theLd CIT(A) need to be accepted. We therefore set-aside the order of the lower authority and the matter remit back to the file of LdAO to adjudicate the matteraccording to law after giving due opportunity to the assessee tosubmit/explain his case. 7. In result the appeal of the assessee allowed for statical purpose. Page | 5 Order pronounced in the open court on 19 / 03/2025. Sd/- Sd/- (Dr. A.L. SAINI) (DINESH MOHAN SINHA) ACCOUNT MEMBER JUDICAL MEMBER Rajkot \u001bदनांक/ Date:19 /03 /2025 Copy of the Order forwarded to 1. The Assessee 2. The Respondent 3. The CIT(A) 4. Pr. CIT 5. DR/AR, ITAT, Rajkot 6. Guard File By Order Assistant Registrar/Sr. PS/PS ITAT, Rajkot "