SOMNATH KELAVNI MANDAL,NADIAD V. .INCOME TAX OFFICER, WARD EXEMPTION-BARODA

ITA 937/AHD/2024

AI Insights

The case involves Somnath Kelavni Mandal, a trust managing educational institutions, which appealed against an order from the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi. The appeal was related to an ex-parte assessment order under section 144 of the Income Tax Act, 1961, for the assessment year 2016-17. The primary issue was the unexplained cash deposits totaling Rs. 51,17,000 in demonetized currency, which the trust claimed were school fees. The Assessing Officer (A.O.) rejected this explanation as it did not match the cash book records, leading to the addition of this amount as unexplained money under section 69A of the Act. The CIT(A) upheld the A.O.'s decision after the assessee failed to respond to multiple hearing notices. The tribunal dismissed the appeal due to the absence of the assessee or any representative at the hearing.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 470085 (ITAT-AHMEDABAD)
• Duration Of Justice: 7 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-12-2024
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2017-2018
• Appeal Filed On: 03-05-2024
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: RIGNESH DAS
• Assessee Lawyers: RPAD; POSTAL ACKNOWLEDGMENT
• Section: 144; 69A

Judgement Text

"THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD “C” BENCH Before: Dr. BRR Kumar, Vice President And Shri TR Senthil Kumar, Judicial Member Somnath Kelavni Mandal, Nadiad PAN: AAATJ0995M (Appellant) Vs The ITO, Ward Exemption, Baroda (Respondent) Assessee by: None Revenue by: Shri Rignesh Das, Sr. D.R. Date of hearing : 10-12-2024 Date of pronouncement : 12-12-2024 आदेश/ORDER PER : TR SENTHIL KUMAR , JUDICIAL MEMBER:- This appeal is filed by the assessee as against the appellate order dated 04-03-2024 passed by the Commissioner of Income Tax, (Appeals), National Faceless Appeal Centre, Delhi arising out of the ex-parte assessment order passed u/s. 144 of the Income Tax Act, 1961 (hereinafter referred to as the “Act”) relating to the assessment year 2016-17. ITA No. 937/Ahd/2024 Assessment Year 2017-18 I.T.A No. 937/Ahd/2024 A.Y. 2017-18 Page No. Somnath Kelavni Mandal vs. ITO 2 2. Brief facts of the case, the assessee is a trust managing various education institutes on government grant basis and self finance basis. During the financial year, the assessee made cash deposit in demonetized currency totaling to Rs. 51,17,000/- from New Gujarat Commerce College and N.K. Solanki School of Commerce. During the course of assessment proceedings, the assessee was asked to explain the above source. The assessee replied that the school fees collected from the students which were remained in hand as on 08-11-2016 were deposited in the bank account in old denomination notes. The above explanation was not accepted by the A.O. since it is not matching with the cash book maintained by the assessee. Thus, the A.O. made the cash deposit of Rs. 51,17,000/- as unexplained money u/s. 69A of the Act and demanded tax thereon. 3. Aggrieved against the assessment order, the assessee filed appeal before CIT(A) who has given five opportunities of hearing between 27-01-2021 to 20-02-2024. None of the hearing notices were responded by the assessee, thereby ld. CIT(A) confirmed the addition made by the Assessing Officer. 4. Aggrieved against the same, the assessee is in appeal before us raising the following grounds of appeal:- “1. In fact and in law the assessment of cash deposit into ICICI bank of Rs. 913000 u/s 69A on basis of assumption and presumption need to be deleted. I.T.A No. 937/Ahd/2024 A.Y. 2017-18 Page No. Somnath Kelavni Mandal vs. ITO 3 2. AO has grossly erred in applying section 69A to cash deposited in ICICI bank of Rs. 913000 from cash on hand which was duly explained and recorded in books need to be deleted. 3. In fact and in law the assessment of cash deposit into Corporation bank of Rs. 4204000 u/s 69A on basis of assumption and presumption need to be deleted. 4. AO has grossly erred in applying section 69A to cash deposited in Corporation bank of Rs. 42,04,000/- which is student fee and duly explained and recorded in books, which is not justified, need to be deleted.” 4.1 Today is the 7th time of hearing of this appeal. Even in the previous hearing, none appeared on behalf of the assessee and the assessee has not given Authorization to any Representative to represent its case. During today’s hearing, notices were duly served on the assessee by RPAD and postal acknowledgment receipt is placed on record. However, none appeared on behalf of the assessee and no materials placed before this Tribunal to adjudicate the Grounds raised by the assessee. Thus, it is clear the assessee is not ready to persue above appeal. Therefore, the appeal filed by the assessee is hereby dismissed for non- prosecution. 5. In the result, the appeal filed by the assessee is dismissed. Order pronounced in the open court on 12-12-2024 Sd/- Sd/- (DR. BRR KUMAR) (TR SENTHIL KUMAR) VICE PRESIDENT JUDICIAL MEMBER Ahmedabad : Dated 12/12/2024 I.T.A No. 937/Ahd/2024 A.Y. 2017-18 Page No. Somnath Kelavni Mandal vs. ITO 4 आदेश क\u0006 \u0007\bत ल\fप अ\u000fे\fषत / Copy of Order Forwarded to:- 1. Assessee 2. Revenue 3. Concerned CIT 4. CIT (A) 5. DR, ITAT, Ahmedabad 6. Guard file. By order/आदेश से, उप/सहायक पंजीकार आयकर अपील\u0012य अ\u0013धकरण, अहमदाबाद "