VIKRAM TATYABA CHATUR,SATARA V. INCOME TAX OFFICE WARD 3, SATARA

ITA 2376/PUN/2024

AI Insights

The case involves an appeal by Vikram Tatyaba Chatur against the ex-parte order of the Ld. CIT(A) / NFAC, Delhi, which confirmed the addition of Rs.1,55,66,971 made by the Assessing Officer under the head 'Income from other sources' for the assessment year 2017-18. The assessee had not filed his original return of income, and significant cash transactions were noted in his bank accounts. The Assessing Officer reopened the assessment under section 147 of the Income Tax Act, 1961, and made additions under section 144 due to non-compliance and non-submission of details by the assessee. The Tribunal found that the assessee did not receive notices due to an outdated email ID and thus did not have the opportunity to present his case, leading to the decision to restore the matter to the Assessing Officer.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 471180 (ITAT-PUNE)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-01-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2017-2018
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ARVIND DESAI
• Assessee Lawyers: SHARAD A SHAH
• Keywords: Opportunity of being heard; Competent authority
• Section: 147; 148; 144; 69A

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH “B”, PUNE BEFORE SHRI R. K. PANDA, VICE PRESIDENT AND MS. ASTHA CHANDRA, JUDICIAL MEMBER ITA No.2376/PUN/2024 Assessment year : 2017-18 Vikram Tatyaba Chatur 11, Khed, Nandgiri, Satara – 415012 Vs. ITO, Ward 3, Satara PAN: ALTPC9289M (Appellant) (Respondent) Assessee by : Shri Sharad A Shah Department by : Shri Arvind Desai Date of hearing : 01-01-2025 Date of pronouncement : 03-01-2025 O R D E R PER R. K. PANDA, VP : This appeal filed by the assessee is directed against the ex-parte order dated 22.08.2024 of the Ld. CIT(A) / NFAC, Delhi relating to assessment year 2017-18. 2. There is a delay of 15 days in filing of this appeal before the Tribunal, for which the assessee has filed a condonation application along with an affidavit explaining the reasons for such delay. After considering the contents of the condonation application filed along with the affidavit and after hearing the Ld. DR, the delay in filing of the appeal is condoned and the appeal is admitted for adjudication. 2 ITA No.2376/PUN/2024 3. Although a number of grounds have been raised by the assessee, however, these all relate to the ex-parte order of the Ld. CIT(A) / NFAC in confirming the addition of Rs.1,55,66,971/- made by the Assessing Officer in the ex-parte order under the head ‘Income from other sources’. 4. Facts of the case, in brief, are that the assessee is an individual and has not filed his original return of income for the impugned assessment year. It was observed by the Assessing Officer that the assessee has deposited cash of Rs.1,55,23,330/- and has withdrawn a sum of Rs.2,43,11,902/-. Apart from the above, the assessee has also received interest income of Rs.43,641/-. Since the assessee had not filed his return of income, the Assessing Officer, after taking the prior approval of the competent authority and after recording reasons, reopened the assessment as per provisions of section 147 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) and issued notice u/s 148 of the Act which was duly served on the assessee. Since the assessee neither filed any return nor participated in the assessment proceedings and did not file any submission explaining the source of such cash deposits in the bank account, the Assessing Officer completed the assessment u/s 144 of the Act by making addition of Rs.1,55,23,330/- being the cash deposited treating the same as ‘Income from other sources’ and taxed u/s 69A r.w.s. 115BBE of the Act. 3 ITA No.2376/PUN/2024 5. Since despite issue of notice the assessee did not submit any submission, the Ld. CIT(A) / NFAC in the ex-parte order passed by him sustained the addition made by the Assessing Officer. 6. Aggrieved with such order of the Ld. CIT(A) / NFAC, the assessee is in appeal before the Tribunal by raising the following grounds: On facts and in law, without prejudice to each other, 1. The Ld.CIT-A erred in dismissing the appeal ex-parte. 2. The Non-attendance / No response before CIT-A was because no notce of appeal hearing was received by me and therefore, in the interest of justice, the appeal be restored to the file of CIT-A/AO as the case may be. 3. The Ld. AO erred in (Ld. CIT-A erred in confirming) making addition of Rs.1,55,66,971/- u/s 69A of IT Act. 4. The appellant craves its right to add to or alter the Grounds of Appeal at any time before or during the course of hearing of the case. 7. The Ld. Counsel for the assessee at the outset submitted that due to change in the e-mail ID, the notice issued by the Assessing Officer could not be seen by the assessee for which there was no compliance to the notices issued by the Assessing Officer. He submitted that although the assessee in Form No.35 filed before the Ld. CIT(A) / NFAC has given the new e-mail ID, however, notices were sent to the old e-mail for which the assessee could not make any submission before the Ld. CIT(A) / NFAC, for which all these unfortunate events happened. He accordingly submitted that in the interest of justice the assessee should be given an opportunity to substantiate his case by filing the requisite details. 4 ITA No.2376/PUN/2024 8. The Ld. DR on the other hand heavily relied on the orders of the Assessing Officer and the Ld. CIT(A) / NFAC. 9. We have heard the rival arguments made by both the sides and perused the orders of the Assessing Officer and Ld. CIT(A) / NFAC. It is an admitted fact that due to non-compliance to the statutory notices issued by the Assessing Officer and non-submission of the details substantiating the nature and source of the cash deposits made in the bank account, the Assessing Officer made addition of Rs.1,55,66,971/- u/s 69A r.w.s. 115BBE of the Act in the ex-parte order passed by him. We find since the assessee did not submit any details before the Ld. CIT(A) / NFAC despite number of opportunities granted, the Ld. CIT(A) / NFAC upheld the action of the Assessing Officer. It is the submission of the Ld. Counsel for the assessee that the notices from the Assessing Officer as well as the Ld. CIT(A) / NFAC were sent to the old e-mail ID for which the assessee was unable to see the same for which all these unfortunate events happened. It is also his submission that given an opportunity, the assessee is in a position to substantiate his case by filing the requisite details before the Assessing Officer. Considering the totality of the facts of the case and in the interest of justice, we deem it proper to restore the issue to the file of the Assessing Officer with a direction to grant one final opportunity to the assessee to substantiate his case and decide the issue as per fact and law after giving due opportunity of being heard to the assessee. The assessee is also hereby directed to make his submissions, if any, before the Assessing Officer on the appointed date without seeking any adjournment under any pretext, 5 ITA No.2376/PUN/2024 failing which the Assessing Officer is at liberty to pass appropriate order as per law. We hold and direct accordingly. The grounds raised by the assessee are accordingly allowed for statistical purposes. 10. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the open Court on 3rd January, 2025. Sd/- Sd/- (ASTHA CHANDRA) (R. K. PANDA) JUDICIAL MEMBER VICE PRESIDENT पुणे Pune; दिन ांक Dated : 3rd January, 2025 GCVSR आदेश की प्रतितिति अग्रेतिि/Copy of the Order is forwarded to: 1. अपीलार्थी / The Appellant; 2. प्रत्यर्थी / The Respondent 3. 4. The concerned Pr.CIT, Pune DR, ITAT, ‘B’ Bench, Pune 5. गार्ड फाईल / Guard file. आदेशानुसार/ BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अधिकरण ,पुणे / ITAT, Pune 6 ITA No.2376/PUN/2024 S.No. Details Date Initials Designation 1 Draft dictated on 01.01.2025 Sr. PS/PS 2 Draft placed before author 02.01.2025 Sr. PS/PS 3 Draft proposed & placed before the Second Member JM/AM 4 Draft discussed/approved by Second Member AM/AM 5 Approved Draft comes to the Sr. PS/PS Sr. PS/PS 6 Kept for pronouncement on Sr. PS/PS 7 Date of uploading of Order Sr. PS/PS 8 File sent to Bench Clerk Sr. PS/PS 9 Date on which the file goes to the Head Clerk 10 Date on which file goes to the A.R. 11 Date of Dispatch of order "