UNIK SURGICAL PVT. LTD,PATNA V. DC/AC CIRCLE-1, PATNA

ITA 328/PAT/2023

AI Insights

The case involves Unik Surgical Pvt. Limited, which appealed against the order of the CIT(Appeals) at the National Faceless Appeal Centre, Delhi, concerning the Assessment Year 2017-2018. The primary issue was the addition of Rs.1,06,72,000 as unexplained money under section 69A of the Income Tax Act, attributed to cash deposits during the demonetization period. The Assessing Officer had initially treated these deposits as unexplained due to non-compliance by the assessee in providing necessary documents. The CIT(Appeals) upheld this decision after the assessee failed to substantiate its claims or provide evidence during the appeals process. The ITAT, considering the circumstances, decided to remit the case back to the CIT(Appeals) to ensure a fair hearing, cautioning the assessee to cooperate fully in the proceedings.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 473180 (ITAT-PATNA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-01-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2017-2018
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Set aside
• Section: 143(2); 69A

Judgement Text

" ITA No. 328/PAT/2023 (A.Y. 2017-2018) Unik Surgical Pvt. Limited 1 IN THE INCOME TAX APPELLATE TRIBUNAL, KOLKATA-PATNA ‘e-COURT’, KOLKATA [Hybrid Court Hearing] Before Shri Duvvuru RL Reddy, Vice-President (KZ) & Shri Rajesh Kumar, Accountant Member I.T.A. No. 328/PAT/2023 Assessment Year: 2017-2018 Unik Surgical Pvt. Limited,…...……..……Appellant Building No. 2C/159, G.D. Mishra Path, New Pataliputra Colony, Bihar-800013 [PAN: AABCU0970B] -Vs.- Deputy Commissioner /Assistant Commissioner,…………………..Respondent Circle-1, Patna Appearances by: Shri Shivansh Tulsiyan, A.R., appeared on behalf of the assessee Shri Ashwani Kr. Singal, JCIT, appeared on behalf of the Revenue Date of concluding the hearing: December 05, 2024 Date of pronouncing the order: January 31, 2025 O R D E R Per Duvvuru RL Reddy, Vice-President (KZ):- The present appeal is directed at the instance of assessee against the order of ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi dated 21st September, 2023 passed for Assessment Year 2017-18. ITA No. 328/PAT/2023 (A.Y. 2017-2018) Unik Surgical Pvt. Limited 2 2. Brief facts of the case are that the assessee is a Private Limited Company, which filed its return of income electronically declaring total income at Rs.23,60,940/-. The return was selected for complete scrutiny under CASS and notice under section 143(2) was issued and served on the assessee. Inspite of service of notice, no compliance was made from the side of assessee. Thereafter a show-cause notice was issued to the assessee stating that if the assessee fails to make compliance of the notice, it will be presumed that the assessee has nothing to say in this regard and ex-parte order will be passed on the basis of material available on record. The assessee failed to give any explanation about the nature and source of cash deposits to the tune of Rs.78,50,000/- during the time of demonetization period maintained with Corporation Bank and deposit to the tune of Rs.28,22,000/- maintained with United Bank of India. Therefore, the ld. Assessing Office treated the aggregated amount of Rs.1,06,72,000/- as unexplained money under section 69A and added the same to the total income of the assessee. On being aggrieved, the assessee preferred an appeal before the ld. CIT(Appeals). 3. The ld. CIT(Appeals) has given several opportunities to the assessee to substantiate his claim, but the appellant did not file the written submissions and did not represent the case before the ld. CIT(Appeals). Thereafter the ld. CIT(Appeals) dismissed the appeal on 21st September, 2023. 4. On being aggrieved, the assessee preferred an appeal before the ITAT. ITA No. 328/PAT/2023 (A.Y. 2017-2018) Unik Surgical Pvt. Limited 3 5. At the time of hearing, it was the submission of the ld. Counsel for the assessee that ld. CIT(Appeals) passed an ex-parte order by upholding the order passed by the ld. Assessing Officer. Therefore, he pleaded to delete the addition made by the ld. Assessing Officer as confirmed by the ld. CIT(Appeals). 6. At the outset, ld. D.R. brought to my notice that the assessee did not produce the relevant documents as asked by the ld. Assessing Officer during the assessment proceedings. Therefore, the ld. Assessing Officer passed the assessment order assessing the taxable income at Rs.1,06,72,000/-. Thereafter the assessee preferred an appeal before the ld. CIT(Appeals). The ld. CIT(Appeals) has given many opportunities to the assessee and the assessee neither filed written submission nor any evidence before the ld. CIT(Appeals). He further submitted that before the ITAT, the assessee did not substantiate its claim. Therefore, he pleaded to uphold the orders passed by the revenue authorities. 7. We have heard the rival submissions and perused the material available on record. Considering the facts and circumstances of the case, we are inclined to set aside the order passed by the ld. CIT(Appeals) in order to meet the principle of natural justice, and remit the matter back to the file of ld. CIT(Appeals) with a direction to provide one more opportunity of being heard to the assessee. At the same breath, we also hereby caution the assessee to promptly co-operate with the proceedings before the Ld. CIT(Appeals) failing which the Ld. CIT(Appeals) shall ITA No. 328/PAT/2023 (A.Y. 2017-2018) Unik Surgical Pvt. Limited 4 be at liberty to pass appropriate order in accordance with law and merits based on the materials available on the record. Thus, the grounds raised by the assessee are allowed for statistical purposes. 8. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open Court on 31/01/2025. Sd/- Sd/- (Rajesh Kumar) (Duvvuru RL Reddy) Accountant Member Vice-President (KZ) Kolkata, the 31st day of January, 2025 Copies to :(1) Unik Surgical Pvt. Limited, Building No. 2C/159, G.D. Mishra Path, New Pataliputra Colony, Bihar-800013 (2) Deputy Commissioner /Assistant Commissioner, Circle-1, Patna (3) CIT(Appeals), NFAC, Delhi (4) CIT - ; (5) The Departmental Representative; (6) Guard File TRUE COPY By order Assistant Registrar, Income Tax Appellate Tribunal, Kolkata Benches, Kolkata Laha/Sr. P.S. "