SUMAN SHUKLA,GORAKHPUR vs. INCOME TAX OFFICER, WARD - 2(1), GORAKHPUR

IN THE INCOME TAX APPELLATE TRIBUNAL CIRCUIT BENCH (SMC), VARANASI BEFORE SHRI. SUDHANSHU SRIVASTAVA, JUDICIAL MEMBER ITA No.134/VNS/2024 Assessment Year: 2014-15 Suman Shukla v. The Income Tax Officer 98-C, Ajad Nagar Ward 2(1) Jungle Tulsiram Gorakhpur Bichhiya, Gorakhpur (U.P) TAN/PAN:DOBPS9500B (Applicant) (Respondent) Applicant by: None Respondent by: Shri Sabayasachi Chakraborty, D.R. O R D E R This appeal has been preferred by the Assessee against the order dated 29.05.2024, passed by the National Faceless Appeal Centre, Delhi (NFAC) for Assessment Year 2014-15.

2.0 The brief facts of the case are that the assessee did not file her return of income for the year under consideration. The Income Tax Department was in possession of information that the assessee had made cash deposits totaling to Rs.11,35,000/- in her two Bank Accounts, viz. Bank Account Nos. 31880521189 and 31337026084, maintained with State Bank of India, Gorakhpur, during the year under consideration. The case of the assessee was reopened under section 147 of the Income Tax Act, 1961 (hereinafter called 'the Act’) after issuing Notice under section 148 of the Act. However, in response to notice under

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section 148 of the Act, there was no response from the side of the assessee. Thereafter, the AO issued statutory notices to the assessee, requiring the assessee to explain the source of cash deposits with supporting evidence. However, there was still no response from the side of the assessee. The AO, subsequently, issued a show cause notice to the assessee for completion of assessment under section 144 of the Act, vide which the assessee was required to furnish the details of source of cash deposits. Since again there was no response from the side of the assessee, the AO treated the cash deposits totaling to Rs.11,35,000/- as undisclosed income earned from undisclosed sources and added the same to the total income of the assessee under section 69A of the Act. The AO completed the assessment under section 147 read with section 144 of the Act, assessing the total income of the assessee at Rs.11,35,000/-.

2.1 The AO also initiated penalty proceedings under sections 271(1)(b), 271(1)(c) and 271F of the Act, separately.

2.2 Aggrieved, the Assessee preferred an appeal before the Ld. First Appellate Authority. Subsequently, the appeal was migrated to NFAC, which dismissed the appeal of the assessee and confirmed the order of the AO.

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2.3 Now the assessee has approached this Tribunal challenging the order of the NFAC, by raising the following grounds of appeal:

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of the Counsel of the assessee, Shri Deepak Kumar, Advocate, seeking adjournment, was placed before me citing the reason that due to serious illness of his father, he will be unable to appear before the Tribunal on the date fixed for and, therefore, the appeal may be adjourned. However, looking into facts of the case, I reject the adjournment application and proceed to adjudicate the appeal.

4.0 The Ld. Sr. D.R. placed reliance on the orders of the authorities below and submitted that the appeal of the assessee may be dismissed.

5.0 I have heard the Ld. Sr. D.R. and have also perused the material on record. It is evident that the order passed by the AO is ex-parte qua the assessee and the Ld. First Appellate Authority has simply dismissed the appeal of the assessee by confirming the order of the AO. Looking into the facts of this case, I am of the considered view that the assessee deserves one more opportunity to present her case and, therefore, I set aside the order of the NFAC and restore this file to the Office of the Assessing Officer with the direction to provide one more opportunity to the assessee to present her case. The AO is also directed to admit whatever evidences assessee wants submit before him. I also caution the assessee to fully comply with the

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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 material available on record even if it is ex-parte qua the assessee.

6.0 In the result, the appeal of the assessee stands allowed for statistical purposes.

Order pronounced in the open Court on 23/07/2026.

Sd/- [SUDHANSHU SRIVASTAVA] JUDICIAL MEMBER DATED:23/07/2026 JJ: Copy forwarded to: 1. Appellant 2. Respondent 3. CIT(A) 4. CIT 5. DR By order Assistant Registrar/DDO