VARDHAN H JAISWAL,KOLKATA V. D.C.I.T., CIRCLE - 49(1), KOLKATA

ITA 1228/KOL/2025

AI Insights

The case involves Vardhan H Jaiswal, the appellant, who appealed against the order of the CIT(A), National Faceless Appeal Centre, Delhi, for the assessment year 2017-2018. The primary contention was the belated filing of the appeal, which was condoned by the Tribunal. The appellant, engaged in trading of two-wheeler spare parts under 'M/s Maa Durga Motor Company', faced an addition of Rs.2,43,08,000 to his income under section 69 of the Income Tax Act, attributed to unexplained cash deposits in his bank accounts. The CIT(A) had dismissed the appeal without considering the written submissions, leading to the current appeal. Additionally, the appellant challenged the validity of the notice issued under section 143(2) of the Act, claiming non-compliance with CBDT Instruction F.No.225/157/2017/ITA-II dated 23.06.2017.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 772218 (ITAT-KOLKATA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-08-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Assessment Year: 2017-2018
• Laws Referred To: Income Tax Act
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: S.B. CHAKRABORTHY
• Assessee Lawyers: MIRAJ D SHAH
• Keywords: Condonation of delay; Opportunity of being heard; Invalid notice

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “D” BENCH, KOLKATA BEFORE SHRI RAJESH KUMAR, ACCOUNTANT MEMBER AND SHRI PRADIP KUMAR CHOUBEY, JUDICIAL MEMBER आयकर अपील सं/ITA No.1228/KOL/2025 (निर्धारण वर्ा / Assessment Year : 2017-2018) Vardhan H Jaiswal, AJ-55, Salt Lake City, Kolkata-700091 Vs DCIT, Circle-49(1), Kolkata PAN No. :ACVPJ 4591 J (अपीलधर्थी /Appellant) .. (प्रत्यर्थी / Respondent) निर्धाररती की ओर से /Assessee by : Shri Miraj D Shah, AR रधजस्व की ओर से /Revenue by : Shri S.B.Chakraborthy, Sr. DR सुनवाई की तारीख / Date of Hearing : 11/08/2025 घोषणा की तारीख/Date of Pronouncement : 28/08/2025 आदेश / O R D E R Per Pradip Kumar Choubey, JM : The assessee has filed the instant appeal against the order dated 07.08.2024, passed by the ld. CIT(A), National Faceless Appeal Centre, Delhi, for the assessment year 2017-2018. 2. The appeal of the assessee has been filed belatedly by 216 days. In this regard, the assessee has filed an application along with affidavit for condonation of delay stating therein that due to lack of knowledge about the order passed by the Assessing Officer. Considering the submissions of the ld.AR and looking to the facts of the case, we condone the delay of 216 days and appeal of the assessee is admitted for hearing. 3. During the course of hearing, ld. AR submitted that the assessee is an individual and is engaged in the business of trading in spare parts and accessories of scooter, motor cycle, moped and other two wheelers in the name and style of “M/s Maa Durga Motor Company” and has shown income from business & income from other sources during the year under Printed from counselvise.com ITA No.1228/KOL/2025 2 consideration. Ld.AR also submitted that the Assessing Officer completed the assessment assessing the total income of the assessee at Rs.2,86,91,390/- and made addition of Rs.2,43,08,000/- u/s.69 of the Act on account of cash deposits in the bank accounts of the assessee. Ld.AR further submitted that the ld.CIT(A) dismissed the appeal of the assessee without considering the written submission filed during the course of appellate proceedings. Ld. AR, now, before the Tribunal in addition to the grounds raised in Form 36, has also raised additional ground challenging the invalid notice issued u/s.143(2) of the Act by the Assessing Officer without complying the CBDT Instruction F.No.225/157/2017/ITA-II, dated 23.06.2017 and in consequence thereof the assessment proceedings initiated by the Assessing Officer is not sustainable. The legal ground raised by the assessee reads as under:- 1. That the Id. AO erred in issuing notice u/s 143(2) of the Act dated 24.09.2018 without complying to the CBDT Instruction F.No.225/157/2017/ITA-II dated 23.06.2017 and so the notice issued u/s 143(2) is not valid as per law and hence the entire assessment order and the assessment proceedings under the Act is bad in law. 4. Accordingly, ld.AR prayed that if one more opportunity is provided, the assessee would be able to substantiate its case before the ld.CIT(A). 5. On the other hand, ld. Sr.DR vehemently supported the orders of the lower authorities and submitted that the assessee was unable to provide the details as called for by the ld.CIT(A) and even the assessee was non- cooperative before the ld.CIT(A). Therefore, ld.CIT-DR prayed that orders of the authorities below deserve to be upheld. Printed from counselvise.com ITA No.1228/KOL/2025 3 6. Upon hearing the submissions of counsel for the respective parties and perusing the facts of the case and submission made by the ld. AR, we find that the ld. CIT(A) in its order at para 3.2 has mentioned that the assessee was failed to produce the sales bill, cash book/bank book, purchase register and sales register to substantiate its claim. Even a perusal of the assessment order also shows that the assessee has not furnished any details with respect to source of cash deposits made during the year under consideration nor produced the purchase register and sales register as asked for. Since the assessee was unable to furnish any details before either of the authorities below, therefore, in the interest of justice, we restore the issues in this appeal to the file of ld.AO to adjudicate the issue afresh on merit as well as on legal ground after providing sufficient opportunity of being heard to the assessee. The assessee is also directed to produce all the relevant documents to substantiate its case and cooperate in the fresh adjudication proceedings before the ld. AO, positively. 7. In the result, appeal of the assessee is allowed for statistical purposes. Order pronounced in the open court on 28/08/2025 Sd/- (RAJESH KUMAR) Sd/- (PRADIP KUMAR CHOUBEY) लेखा सदस्य/ ACCOUNTANT MEMBER न्यधनयक सदस्य / JUDICIAL MEMBER कोलकाता Kolkata; ददनाांक Dated 28/08/2025 Prakash Kumar Mishra, Sr.P.S. आदेश की प्रनतललपप अग्रेपर्त/Copy of the Order forwarded to : 1. अपीलार्थी / The Appellant- 2. प्रत्यर्थी / The Respondent- 3. आयकर आयुक्त(अपील) / The CIT(A), 4. आयकर आयुक्त / CIT Printed from counselvise.com ITA No.1228/KOL/2025 4 आदेशधिुसधर/ BY ORDER, (Assistant Registrar) Income Tax Appellate Tribunal, Kolkata 5. विभागीय प्रविविवि, आयकर अपीलीय अविकरण, कोलकाता / DR, ITAT, Kolkata 6. गार्ड फाईल / Guard file. सत्यापपत प्रतत //True Copy// Printed from counselvise.com "