RUSTAM SHAHI,GORAKHPUR vs. INCOME TAX OFFICER - 2(3), GORAKHPUR

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ITA 223/VNS/2024Status: DisposedITAT Varanasi09 July 2026AY 2013-20143 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal restored the issues in dispute regarding additions made in the assessment order back to the Assessing Officer. The Assessing Officer was directed to pass a denovo order after providing a reasonable opportunity to the assessee.

What were the facts?

The assessee filed an appeal against the CIT(A)'s order upholding additions made by the Assessing Officer for AY 2013-14. The appeal was filed beyond the prescribed time limit, but the delay was condoned.

What were the issues?

Whether the assessment order and CIT(A)'s order were passed without providing a reasonable opportunity to the assessee. The validity of additions made on account of bank deposits and interest income.

Which sections of the Income-tax Act were involved?

Section 147,Section 143,Section 234B,Section 271(1)(c),Section 253(3),Section 253(5)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, VARANASI BENCH ‘SMC’, VARANASI

Before: SHRI ANADEE NATH MISSHRA

For Appellant: Shri Rustam Shahi, CA

PER ANADEE NATH MISSHRA:A.M.

(A) This appeal has been filed by the assessee against the impugned appellate order of learned CIT(A)/National Faceless Appeal Centre (NFAC), Delhi vide order dated 07.02.2024 for the AY 2013-14. The assessee has raised the following grounds of appeal: “1. That on facts and in circumstances of the case and in law, the Ld. CIT(A) has failed to appreciate the facts of the case in the correct perspective. 2. That on the facts and in circumstances of the case and in law, the Ld. CIT(A) has erred in upholding the addition of Rs. 43,65,154 by Assessing Officer on account of bank deposits.

I.T.A. No. 223/Vns/2024 Assessment Year: 2013-14 2

3.

That on the facts and in circumstances of the case and in law, the Ld. CIT(A) has erred in upholding the addition of Rs. 22,577 as interest income. 4. That the additions upheld by Ld. CIT(A) in computing the income is unsustainable in law and are bad in law and contrary to the principles of natural justice. 5. That on the facts and in the circumstances of the case and in law, the Ld. CIT(A) has erred in upholding the levy of interest under section 234B of the Act while passing the impugned order. 6. That on the facts and in the circumstances of the case and in law, the Ld. CIT(A) has erred in upholding of the initiation of penalty proceedings under section 271(1)(c) of the Act.”

(B) The present appeal has been filed beyond the time prescribed under section 253(3) of the Income Tax Act, 1961 (the Act). The assessee has filed application for condonation of delay in filing of the present appeal. The learned Departmental Representative expressed no objection to condonation of delay, as requested by the appellant assessee. In view of the reasons stated in the application, the delay in filing of the appeal is condoned under section 253(5) of the Act and the appeal is admitted.

(C) In this case, assessment order dated 19.11.2019 was passed by the Assessing Officer under section 147/143 of the Income Tax Act, 1961 (the Act) wherein the assessee’s income was determined at Rs. 47,64,930/-. The assessee’s appeal against the assessment order was dismissed by the Learned CIT(A) vide impugned appellate order dated 07.02.2024. The present appeal has been filed by the assessee against the aforesaid impugned appellate order dated 07.02.2024.

(D) At the time of hearing, the Learned Authorized Representative for the assessee submitted that the impugned appellate order and the assessment order were passed without providing reasonable opportunity to the assessee. He

I.T.A. No. 223/Vns/2024 Assessment Year: 2013-14 3

submitted that the issues in dispute regarding additions made in the assessment order should be restored back to the file of the Assessing Officer with the direction to pass denovo order in accordance with law after providing reasonable opportunity to the assessee. The Learned Departmental Representative for Revenue expressed no objection to this. In view of the foregoing, after hearing both sides and after due consideration of materials on record; the issues in dispute regarding additions made in the assessment order are restored back to the file of the Assessing Officer, with the direction to pass denovo order in accordance with law, after providing reasonable opportunity to the assessee.

(E) All grounds of appeal are treated as disposed off, in accordance with the aforesaid directions. For statistical purposes, the appeal is partly allowed.

(Order was pronounced in the open court on 09/07/2026)

Sd/- (ANADEE NATH MISSHRA) Accountant Member Date: 09/07/2026 SK, Sr.PS

Copy of the order forwarded to : 1. The Appellant 2. The Respondent. 3. Concerned CIT 4. D.R., I.T.A.T., 5. CIT(A) Senior Private Secretary Income Tax Appellate Tribunal Lucknow

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