VINODBHAI AMARSANG PATEL,BHARUCH GUJARAT V. ASSESSING OFFICER, WARD 1(4), BHARUCH, GUJARAT

ITA 251/SRT/2024

AI Insights

The case involves Vinodbhai Amarsang Patel, the appellant, contesting an ex-parte order from the National Faceless Appeal Centre, Delhi, for the Assessment Year 2011-12. The primary issue arose from a significant cash deposit in the assessee's bank account, which led to the reopening of the case under Section 147 of the Income Tax Act, 1961. The Assessing Officer and the CIT(A) both passed ex-parte orders due to the non-compliance of the assessee in providing necessary explanations or evidence regarding the source of the cash deposit. The Tribunal, while acknowledging the lack of compliance, restored the matter to the Assessing Officer to ensure justice, contingent upon the payment of costs by the assessee.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 470566 (ITAT-SURAT)
• Duration Of Justice: 7 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-10-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Next Hearing Date: 10-10-2024
• Assessment Year: 2011-2012
• Appeal Filed On: 06-03-2024
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Reasonable cause
• Section: 147; 148; 144

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL, SURAT BENCH, SURAT BEFORE SHRI PAWAN SINGH, JUDICIAL MEMBER AND SHRI BIJAYANANDA PRUSETH, ACCOUNTANT MEMBER ITA No. 251/Srt/2024 (Assessment Year 2011-12) (Physical hearing) Vinodbhai Amarsang Patel, Panchlufaliyu, Bhuva, Bharuch-392012 (Gujarat) PAN No. BMEPP 3382 H Vs. Assessing Officer Ward 1(4), Bharuch. Appellant/ Assessee Respondent/ Revenue Assessee represented by Shri Krutarth Desai, Advocate with Ms. Disha Kharod, C.A. Department represented by Shri Mukesh Jain, Sr. DR Appeal instituted on 06/03/2024 Date of hearing 10/10/2024 Date of pronouncement 29/10/2024 Order under Section 254(1) of Income Tax Act PER: PAWAN SINGH, JUDICIAL MEMBER: 1. This appeal by the assessee is directed against the order of the National Faceless Appeal Centre, Delhi (NFAC)/learned Commissioner of Income Tax (Appeals), [in short, the ld. CIT(A)] dated 24/01/2024 for the Assessment Year (AY) 2011-12. The ld CIT(A) dismissed the appeal of assessee in ex-parte order. 2. Rival submission of both the parties have been heard and record perused. The learned Authorised Representative (ld. AR) of the assessee submits that the Assessing Officer as well as the ld. CIT(A) passed ex parte orders making high pitch assessment. No fair and reasonable opportunity was given to the assessee. Thus, in the interest of justice, matter may be restored back to the file of Assessing Officer to pass order afresh after giving fair and reasonable ITA No. 251/Srt/2024 Vinodbhai Amarsang Patel 2 opportunity to the assessee. At the time of hearing, on perusal of assessment order, we find that the case of assessee was reopened under Section 147 of the Income Tax Act, 1961 (in short, the Act), notice under Section 148 of the Act was served upon the assessee. No return of income in response to notice under Section 148 was filed nor the assessee filed any explanation or evidence in support of huge cash deposit in his bank account, which was the basis of escapement of income for reopening. The Assessing Officer after serving various notices, completed the assessment under Section 144 of the Act. Again before the ld. CIT(A), the assessee were given six opportunities to file submission to substantiate the various grounds of appeal. No submission was filed by assessee. These facts were confronted to the ld. AT of the assessee and he was to explain the reasons of such non-compliance by assessee. The ld. AR of the assessee submits that he cannot explain the non-compliance on the part of assessee as it is a referred matter with him. 3. On the other hand, the learned Senior Departmental Representative (ld. Sr. DR) for the revenue supported the orders of the lower authorities. The ld. Sr.DR for the revenue submits that more than reasonable and sufficient opportunity was provided to the assessee as evident from the contents of orders of lower authorities itself. The ld. AR of the assessee unable to explain the circumstances which resulted in non-compliance on the part of assessee. The ld. Sr. DR for the revenue submits that even before the Tribunal, neither the assessee has disclosed reasonable and plausible reason for non- appearance nor filed any evidence to substantiate the source of cash deposit ITA No. 251/Srt/2024 Vinodbhai Amarsang Patel 3 in crores. The assessee does not deserve any leniency and addition made in the assessment may be upheld. 4. In the short rejoinder submission, the ld. AR of the assessee submits that he undertakes on behalf of assessee to be more vigilant in future in complying the notices. The ld. AR of the assessee reiterated his submission that in fact the lower authorities have passed ex parte order, thus at least one opportunity may be given to the assessee, in the interest of justice. 5. We have considered the submissions of both the parties and have gone through the orders of the lower authorities carefully. We find that the Assessing Officer completed the assessment under Section 144 r.w.s. 147 of the Act on 03/11/2019. We find that during the assessment, the Assessing Officer issued four show cause notices as recorded in para 2.1 of assessment order to substantiate the source of cash deposit, in the bank account during relevant financial year. The assessee was also asked in the show cause notice that in case of non-compliance, assessment will be finalised under Section 144 of the Act. The assessee despite such show cause notice, neither furnished any reply nor any evidence to substantiate the cash deposit. The Assessing Officer find that there was cash deposit of Rs. 2.37 crores in the bank account with Bank of Baroda out of which Rs. 97,50,460/- was cash deposit. The Assessing Officer made addition only of the cash deposited in absence of evidence of source. On appeal before the ld. CIT(A), the assessee was served with six notices to substantiate various grounds of appeal as recorded in para 5 of order of ld. CIT(A). No compliance was made by assessee, thus, the ld. CIT(A) in absence of any submission or evidence, confirmed the addition. Now ITA No. 251/Srt/2024 Vinodbhai Amarsang Patel 4 before us, the ld. AR of the assessee failed to show any reasonable cause as to why the assessee has not contested the assessment proceedings or before the ld. CIT(A) except making prayer that one more opportunity be allowed to the assessee to contest the case on merit before the lower authorities. Though, we do not find any reasonable explanation for non-appearance before the lower authorities, yet in the interest of justice, the matter is restored back to the file of Assessing Officer for deciding the issue afresh but subject to payment of cost of Rs. 10,000/- (ten thousands). Cost shall be deposited with the account of Income Tax Appellate Tribunal Bar Association, Surat within 15 days from the date of receipt of this order. Original or receipt shall be kept in record of this case and copy thereof be filed before the Assessing Officer. Needless to direct that before passing the order, the Assessing Officer shall grant opportunity of hearing to the assessee. The assessee is also directed to be more vigilant in future and not to cause further delay and seek adjournment without any valid reason and to furnish all the details and his submissions and evidences on various grounds of appeal raised by it, as soon as possible, if so desired without any further delay. In the result, the grounds of appeal raised by the assessee are allowed for statistical purposes. 6. In the result, this appeal of assessee is allowed for statistical purposes only. Order announced in open court on 29th October, 2024. Sd/- Sd/- (BIJAYANANDA PRUSETH) (PAWAN SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER Surat, Dated: 29/10/2024 *Ranjan ITA No. 251/Srt/2024 Vinodbhai Amarsang Patel 5 Copy to: 1. Assessee 2. Revenue 3. CIT By order 4. DR 5. Guard File Sr. Private Secretary, ITAT, Surat // True Copy // "