VAISHNAVI TELECOM,DARBHANGA V. ITO, WARD-3(2), DARBHANGA, DARBHANGA

ITA 479/PAT/2024

AI Insights

The case involves Vaishnavi Telecom, the appellant, who appealed against the order of the Commissioner of Income Tax (Appeals) confirming an addition of Rs. 19,98,430 as unexplained cash credits in the bank account of the assessee for the Assessment Year 2017-18. The initial assessment and the CIT(A)'s order were both ex parte due to the absence of representation from the assessee, attributed to the illness of a key person in the firm. The Tribunal considered the circumstances and the submissions regarding the business transactions with Vodafone Mobile services, which were subjected to TDS, and decided to give the assessee another opportunity to present its case.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 32397 (ITAT-PATNA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-02-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2017-2018
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Keywords: Set aside; Business income; Unexplained cash credit; TDS
• Section: 144; 250

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL PATNA “SMC” BENCH, VIRTUAL HEARING AT KOLKATA Before SRI SANJAY GARG, JUDICIAL MEMBER I.T.A. No.: 479/PAT/2024 Assessment Year: 2017-18 Vaishnavi Telecom ………….. Appellant West of Donar Chowk, Darbhanga, Bihar-846004. (PAN: AALFV9096L) Vs. ITO, Ward-3(2), Darbhanga .............. Respondent Appearances: Appellant represented by: N o n e Respondent represented by: Shri Ashwani Kumar, Sr. DR Date of concluding the hearing : 13.02.2025 Date of pronouncing the order : 13.02.2025 ORDER The captioned appeal has been preferred by the assessee against the order dated 15.05.2024 of the Ld. Commissioner of Income Tax (Appeal), National Faceless Appeal Centre, Delhi [hereinafter referred to as Ld. ‘CIT(A)’] u/s. 250 of the Income Tax Act, 1961 (hereinafter referred to as the “Act”) for Assessment Year (AY) 2017-18. 2. The assessee in this appeal is aggrieved by the action of the Ld. CIT(A) in confirming the addition made by the Assessing Officer of Rs.19,98,430/- on account of unexplained cash credits in the bank account of the assessee. 3. No one has put in appearance on behalf of the assessee despite notice. However, after considering the grounds of appeal as well as the impugned assessment order and the order of the Ld. CIT(A) and after hearing the Ld. DR, I proceed to decide the appeal on merits. 4. A perusal of the impugned assessment order would reveal that the same is an ex parte/best judgment order passed u/s. 144 of the Act. Even the impugned order of the Ld. CIT(A) is also an ex parte order. In the statement I.T.A. No.: 479/PAT/2024 Vaishnabi Telecom, AY : 2017-18 Page 2 of 3 of facts filed before the Ld. CIT(A), it was submitted that the concerned dealing person of the assessee firm namely Shri Sanjeev Kumar had fallen sick and, therefore, could not furnish the requisite documents before the Assessing Officer. It has also been stated that the deposits in question were out of the business receipts of the assessee as the assessee is engaged in business transaction with Vodafone Mobile services. It has further been pleaded that the payments received by the assessee were even subjected to TDS. Though some submissions were made before the Ld. CIT(A), however, thereafter, the assessee could not file the requisite documents before the Ld. CIT(A) out of ignorance. It has, therefore, been pleaded that the assessee may be given an opportunity to represent its case before the Assessing Officer to demonstrate the source of the deposits in the bank account of the assessee. 5. The Ld. Dr, however, has relied upon the findings of the lower authorities. 6. Considering the overall facts and circumstances of this case, in my view, the interests of justice will be well served, if the assessee is given an opportunity to present its case before the Assessing Officer. Impugned order of the Ld. CIT(A) is accordingly, set aside and the matter is restored to the file of the Assessing Officer for assessment afresh on the issue. Needless to say, the Assessing Officer will give proper opportunity to the assessee to present its case and thereafter to decide the matter in accordance with law. 7. In the result, the appeal of the assessee stands allowed for statistical purposes. Order pronounced in the open Court. Sd/- [Sanjay Garg] Judicial Member Dated: 13.02.2025 J.Dey (Sr. P.S.) I.T.A. No.: 479/PAT/2024 Vaishnabi Telecom, AY : 2017-18 Page 3 of 3 Copy of the order forwarded to: 1. Appellant : Vaishnabi Telecom 2. Respondent : ITO, Ward-3(2), Darbjhanga 3. CIT(A), NFAC, Delhi 4. CIT 5. DR, ITAT, Patna Bench, Patna. 6. Guard File. //True copy // By order Assistant Registrar ITAT, Patna Benches Patna "