VINAY KUMAR PATHAK,BAHRAICH UTTAR PRADESH V. ITO-1, BAHRAICH UTTAR PRADESH

ITA 250/LKW/2025

AI Insights

The case involves an appeal by Vinay Kumar Pathak against the order of the National Faceless Appeal Centre (NFAC), which confirmed the addition of Rs.1,06,43,353 to the assessee's income for the Assessment Year 2017-18 under section 69A of the Income Tax Act, 1961. The assessee had not filed a return of income, and substantial cash deposits were noted in his bank account. The Assessing Officer (AO) reopened the assessment under section 147 and made an addition to the income due to non-compliance in providing details of the cash deposits. The NFAC dismissed the appeal due to non-compliance by the assessee. The Tribunal, considering the peculiar facts, decided to restore the case to the AO, providing the assessee another opportunity to present his case.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 396430 (ITAT-LUCKNOW)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-05-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Assessment Year: 2017-2018
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: SUNIL KUMAR RAJWANSHI
• Section: 147; 148; 144

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH “B”, LUCKNOW BEFORE SHRI. SUDHANSHU SRIVASTAVA, JUDICIAL MEMBER AND SHRI ANADEE NATH MISSHRA, ACCOUNTANT MEMBER ITA No.250/LKW/2025 Assessment Year: 2017-18 Vinay Kumar Pathak Pathakpurwa Khandh Bhari Vishesarganj, Bahraich v. The ITO-1 Bahraich TAN/PAN:BEJPP5818P (Appellant) (Respondent) Appellant by: None Respondent by: Shri Sunil Kumar Rajwanshi, D.R. Date of hearing: 28 05 2025 Date of pronouncement: 29 05 2025 O R D E R PER SUDHANSHU SRIVASTAVA, J.M.: This appeal has been preferred by the assessee against order dated 13.02.2025, passed by the National Faceless Appeal Centre, Delhi (NFAC) for Assessment Year 2017-18. 2. The brief facts of the case are that the assessee had not filed the return of income for the year under consideration. As per information available with the Income Tax Department, the assessee had deposited cash amounting to Rs.1,06,40,920/- in his Bank Account No.3502436739 maintained with Central Bank of India and the assessee had also received brokerage of Rs.2,433/- during the year under consideration. The Assessing ITA No.250/LKW/2025 Page 2 of 4 Officer (AO) reopened the assessment under section 147 of the Income Tax Act, 1961 (hereinafter called “the Act’) by issuing notice under section 148 of the Act. In response to notice under section 148 of the Act, the assessee did not file any return of income. The AO, thereafter, issued statutory notices, requiring the assessee to furnish the details of cash deposits. Since there was still no compliance from the side of the assessee, the AO completed the assessment under section 144 read with sections 147 and 144B of the Act, assessing the total income of the assessee at Rs.1,06,43,350/- after making addition of Rs.1,06,353/-. 2.1 The AO also invoked the provisions of section 115BBE of the Act and initiated penalty proceedings under sections 271AAC(1), 272A(1)(d) and 271F of the Act. 3. Aggrieved, the Assessee preferred an appeal before the NFAC, which dismissed the appeal of the assessee for the reason of non-compliance by the Assessee. 4. Now, the Assessee has approached this Tribunal challenging the order of the NFAC by raising the following grounds of appeal: 1. In the facts and circumstances of the case and in law the Ld. C.I.T., (Appeals), National Faceless Appeal Centre [NFAC], Delhi, has legally erred in confirming the action of ITA No.250/LKW/2025 Page 3 of 4 the 1.d. A.O. while confirming the addition of Rs.1,06,43,353.00 u/s 69A of the Income Tax Act, 1961. 2. In the facts and circumstances of the ease and in law the Ld. C.I.T., (Appeals), National Faceless Appeal Centre [NFAC], Delhi, has erred in confirming the action of the Ld. A.O. while not giving adequate opportunity of hearing. 3. It is humbly prayed that one more opportunity may be given to satisfy the Ld. C.I.T. (Appeals), National Faceless Appeal Centre [NFAC], Delhi. 4. The appellant craves his/her right to add, amend or alter any of the grounds on or before the hearing. 5. None was present for the assessee when the appeal was called out for hearing nor was any adjournment application received in this regard. However, looking into the facts of the case, we proceed to adjudicate the appeal ex-parte qua the assessee. 6. The Ld. Senior D.R. had no objection to the restoration of appeal to the file of the Assessing Officer. 7. We have heard the Ld. Senior Departmental Representative and have also perused the material on record. Looking into the peculiar facts of this case, we are of the considered view that the Assessee deserves an opportunity to present his case and, therefore, we restore this file to the Office of the Assessing Officer with the direction to provide one more ITA No.250/LKW/2025 Page 4 of 4 opportunity to the Assessee to present his case and produce the necessary evidences in support of the transactions entered into by the Assessee. We also caution the Assessee to fully comply with the directions of the Assessing Officer in the set-aside proceedings when called upon to do so, failing which, the Assessing Officer would be at complete liberty to pass the order in accordance with law, based on the material available on record even if it is ex-parte qua the assessee. 8. In the result, the appeal of the assessee stands allowed for statistical purposes. Order pronounced in the open Court on 29/05/2025. Sd/- Sd/- [ANADEE NATH MISSHRA] [SUDHANSHU SRIVASTAVA] ACCOUNTANT MEMBER JUDICIAL MEMBER DATED:29/05/2025 JJ: Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. DR By order Assistant Registrar/DDO "