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Facts
The assessee's appeal is against an order confirming an addition of Rs. 57,16,816/- made under Section 69 of the Income Tax Act for AY 2012-13. The addition was based on AIR information regarding cash deposits. The assessee did not file a return of income for the relevant year and did not provide an explanation for the deposits.
Held
The Tribunal held that the assessee failed to appear and provide any explanation or assistance before the lower authorities or the Tribunal. Since the assessee did not offer any justification for the cash deposits, the addition made by the AO and confirmed by the CIT(A) was deemed just and proper.
Key Issues
Whether the addition of unexplained cash deposits is justified when the assessee failed to provide any explanation or appear before the authorities.
Sections Cited
143(3), 147, 69A, 148, 69, 46A
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Income Tax Appellate Tribunal, DELHI BENCH “F”: NEW DELHI
Before: SMT. ANNAPURNA GUPTA
O R D E R PER Ms. MADHUMITA ROY, JM:
The instant appeal, preferred by the assessee, is directed against the order dated 20.12.2023 passed by the Ld. CIT(A)/National Faceless Appeal Centre (NFAC), Delhi, arising out of the order dated 18.12.2019 passed by the Income Tax Officer, Ward 58(3), New Delhi, under Section 143(3) read with Section 147 of the Income Tax Act, 1961 (hereinafter referred to as “the Act”) for Assessment Year 2012-13.
“1. That the Ld CIT(A) erred in law and on facts of the case in deciding the appeal ex-parte under faceless system without giving due and proper opportunity to the assessee to submit his submissions when the appellant had not only specifically sought adjournment to furnish the written submissions but also requested for physical hearing which was granted which resulted in denial of Justice.
That the authorities below erred in law and on facts of the case in making additions of Rs 57,16,816/- u/s 69A of the Act without considering the facts of the case in totality when the notices which came to the knowledge of the assessee were duly complied with as the notices which never came to the knowledge of the assessee could not have been complied with.
That the Authorities below erred on facts and law of the case in making the assessment u/s. 143(3) as well as deciding the appeal ex-parte merely on the basis of notices issued without verifying as to whether the notices issued have been served on the assessee or not because no person including the assessee and with due respects the CIT (A) and the AO can be online on the Income-tax site for 24 hrs - 7 days a week.
That the Authorities below erred on facts and law of the case in concluding that the assessee has not filled his return of income when the assessee had filed his return of income on 31/03/2013 vide acknowledgement receipt no. 614722150310313 which was very much on the records of Income-tax Department. The authorities below rather ignored the return of income filed by the assessee with ill intentions best known to them 5. That the orders of the Authorities below are bad in law and on the facts of the case.
That the orders passed are erroneous, illegal and against the principles of natural justice and equity as well as the well settled laws 7. That the Appellant craves leave to add, amend, alter, vary and/or withdraw any or all the above grounds of Appeal either before or at the time of hearing of appeal.” despite issuance of notice for hearing. After hearing the Ld. DR and perusing the materials available on record, we proceed to dispose of the appeal in absence of the assessee.
4. It is noticed that before the Ld. First Appellate Authority/NFAC also there was no representation on behalf of the assessee and the said authority proceeded with the appeal and finalized the same ex parte, qua the assessee. Facts, as revealed from the materials available on record are that for A.Y. 2012-13 the assessee had not filed his return of income. On AIR information that assessee had deposited cash amounting to Rs. 57,16,816/- in his bank account maintained with Standard Chartered Bank, notice under Section 148 of the Act was issued on 28.03.2019 with prior approval from the PCIT-20, New Delhi dated 22.03.2019. Before the Ld. AO no explanation was rendered in respect of source of cash deposits made by the assessee and thus the same was added to the total income of the assessee under Section 69 of the Act. Even before the First Appellate Authority no submission was made, but application under Rule 46A for admission of evidence was filed.
Having regard to this peculiar aspect of the matter the Ld. CIT(A), in the absence of any explanation rendered by the assessee in respect of the source of cash deposit, confirmed the addition, which in our considered opinion is just and proper so as not to warrant any interference, particularly in the absence of any assistance devoid of any force and is thus, dismissed.
Order pronounced in open court on 04.06.2025.