VAKIL KUSHWAHA,KUSHINAGAR vs. COMMISSIONER OF INCOME TAX APPEAL, THANE

IN THE INCOME TAX APPELLATE TRIBUNAL CIRCUIT BENCH (SMC), VARANASI BEFORE SHRI. SUDHANSHU SRIVASTAVA, JUDICIAL MEMBER ITA No.173/VNS/2024 Assessment Year: 2017-18 Vakil Kushwaha v. The ITO 2(4) House No.09, Bishanpura Kushinagar Pathera Buzurg Kushinagar (U.P) TAN/PAN: (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 02.08.2024, passed by the Learned Commissioner of Income Tax (Appeals), Thane [Addl/JCIT(A)] for Assessment Year 2017-18.

2.0 The brief facts of the case are that the assessee filed his return of income for the year under consideration on 02.08.2017 declaring a total income of Rs.1,08,672/-. Subsequently, the assessee filed his revised return of income on 29.03.2018 declaring a total income of Rs.1,08,430/-. The case of the assessee was selected for Complete Scrutiny under Computer- Assisted Scrutiny Selection (CASS) and, accordingly, statutory Notices were issued to the assessee. However, the assessee did not respond to the notices issued by the Assessing Officer (AO).

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The AO, therefore, proceeded to complete the assessment on the basis of Best Judgment Assessment, after issuing show cause notice to the assessee.

2.1 In this case, an information was also received from the Central Bank of India, Vishnupura, Kushinagar that the assessee was running Franchisees of Central Bank of India, Vishnupura and the CSP transactions were routed through Bank Account No.3123698038 and that as per the Bank Statement furnished by the Bank, the total amount credited in this account during the year under consideration was Rs.2,12,59,078/-. Since the assessee had not furnished any details, the credit entries, amounting to Rs.1,50,419/-, of this account, were treated as undisclosed income of the assessee and were added to the total income of the assessee under section 69A of the Income Tax Act, 1961 (hereinafter called 'the Act’). Further, the AO noticed from the Bank Statement of Account No.3592725453 that the assessee had deposited cash to the tune of Rs.5,000/- during the year under consideration, which was also treated as unexplained money of the assessee and was added to the total income of the assessee under section 69A of the Act.

2.2 The AO completed the assessment under section 144 of the Act, computing the total income of the assessee at Rs.2,63,849/-.

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2.3 The AO also invoked the provisions of section 115BBE of the Act and initiated penalty proceedings under sections 271AAC and 272A(1)(d) of the Act, separately.

2.4 Aggrieved, the Assessee preferred an appeal before the Addl/JCIT(A), which sustained the additions made by the AO and dismissed the appeal of the assessee by passing an order ex- parte qua the assessee.

2.5 Now the assessee has approached this Tribunal challenging the order of the Addl/JCIT(A), by raising the following grounds of appeal:

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transferred is from the assesse's own CSP account. Being aggrieved an appeal is being preferred.

3.0 None was present on behalf of the assessee when the appeal was called out for hearing nor was any adjournment application moved in this regard. However, looking into the facts of the case, I proceed to adjudicate the appeal the appeal based on record before me.

4.0 The Ld. Sr. D.R., supporting the orders of the authorities below, submitted that the appeal of the assessee may be dismissed.

5.0 I have heard the ld. Senior Departmental Representative and have also perused the material on record. It is evident that the order passed by the AO was ex-parte qua the assessee and the Addl/JCIT(A), without adjudicating the issues involved in the appeal, simply sustained the additions made by the AO and dismissed the appeal of the assessee by passing an order ex- parte qua the assessee. Looking into the facts of this case, I am of the considered view that the assessee deserves one more opportunity to present his case and, therefore, I set aside the order of the Addl/JCIT(A) and restore this file to the Office of the Assessing Officer with the direction to provide one more opportunity to the assessee to present his case. I also caution

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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 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