PRAHALAD SINGH,KUNDAN NAGAR AJMER vs. ASSESSMENT UNIT INCOME TAX DEPARTMENT, CENTRAL REVENUE BUILDING JAIPUR ROAD AJMER

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ITA 475/JPR/2025Status: DisposedITAT Jaipur06 July 2026AY 2015-20166 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal upheld the CIT(A)'s order and dismissed the appeal. While acknowledging the potential applicability of Section 44AD, the Tribunal could not accept the claim due to the absence of information regarding the source of cash deposits and supporting business documentation.

What were the facts?

The assessee filed an appeal against the CIT(A)'s order confirming additions made by the AO on account of cash deposits in bank accounts and FDR interest. The assessee did not appear before the AO, CIT(A), or the ITAT, leading to ex-parte orders.

What were the issues?

Whether cash deposits in bank accounts and FDR interest can be taxed as income, and whether the assessee is eligible for presumptive taxation under Section 44AD in the absence of proper documentation and appearance.

Which sections of the Income-tax Act were involved?

Section 147,Section 144,Section 144B,Section 250,Section 69A,Section 69C,Section 44AD,Section 271(1)(c),Section 271(1)(b),Section 271F

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, JAIPUR BENCHES, ‘B’ JAIPUR.

Before: SMT. ANNAPURNA GUPTA & SH. UDAYAN DAS GUPTA

For Respondent: Smt. Namita Patel, JCIT
Hearing: 02.07.2026Pronounced: 06.07.2026

IN THE INCOME TAX APPELLATE TRIBUNAL JAIPUR BENCHES, ‘B’ JAIPUR. BEFORE SMT. ANNAPURNA GUPTA, ACCOUNTANT MEMBER AND SH. UDAYAN DAS GUPTA, JUDICIAL MEMBER

I.T.A. No. 475/JPR/2025 Assessment Year: 2015-16

Prahalad Singh Vs. Assessment Unit Income Kundan Nagar Mohallah Tax Department Kesarpura, Saradhna, Distt. Ajmer (Respondent) [PAN:-CIRPS8325R] (Appellant)

Appellant by None Respondent by Smt. Namita Patel, JCIT Date of Hearing 02.07.2026 Date of Pronouncement 06.07.2026 ORDER Per: Udayan Dasgupta, JM:

This appeal is filed by the assessee against the order of the ld. CIT(A) National Faceless Appeal Centre NFAC (Delhi), passed u/s 250 of the Income Tax Act,1961 ( henceforth the Act ) dated 25.02.2025 which has emanated from the order of the Assessment Unit, Income Tax Department passed u/s 147 r.w.s 144 r.w.s 144B of the I. T. Act, 1961 dated 09.03.2023.

I.T.A. No.475/JPR/2025 Assessment Year: 2015-16 2

2.

The grounds of appeal taken by the assessee in the memorandum of appeal in form 36 are as follows:

“1. The learned CIT(A) eared in confirming the order of the leaned AO and thus upholding the addition of Rs. 78,15,923/-. The learned CIT(A) has eared in law as well as on facts assessed the Assessee at Rs. 78,15,923/- under section 147/144 the same may please be deleted. The learned CIT(A) has wrongly taxed entire amount of Rs. 73,28,000/- as cash deposited in bank u/s 69A it should be taxed u/s 44AD by applying the percentage and not the entire amount. The learned CIT(A) wrongly taxed Rs. 4,70,000/- under section 69 deposited in the bank out of past saving. The FDR interest of Rs. 17,923 has wrongly taxed. Penalty proceedings initiated under section 271(1)(c), 271(1)(b) and 271F the same may please be dropped. That the appellant begs to add alter of amend or delete any grounds of appeal on and before argument of appeal.

3.

On the date of hearing there is no appearance by the assessee or his counsel on repeated calls neither physically nor in virtual mode. It is seen from record that this appeal was previously fixed for hearing on six separate occasions and the assessee has been intimated vide registered post and also in the email id as per form 36 mukeshvijayvargia05@gmail.com .

4.

There is neither any representation nor any response by the assessee or his counsel on any previous occasion, and there is no representation by the assessee today in spite of repeated calls.

5.

It is also seen from the papers and documents attached to the memo of appeal that the order has been passed exparte by the AO at the assessment stage ,

I.T.A. No.475/JPR/2025 Assessment Year: 2015-16 3

in absence of any compliance to various notices issued in course of assessment proceedings.

6.

The AO has completed the assessment on a total income of Rs. 78.15 lakhs , on the basis of information gathered from bank authorities , that the assessee has deposited cash in his S/B A/c in bank of Baroda and Union bank of Indiatotalling to Rs.73.28 lakhs which is added as unexplained u/s 69A of the Act plus an amount of Rs. 4.70 lakhs being investment made in term deposit treated as unexplained u/s 69C and has interest income from bank fixed deposits as reflected in Form 26AS of Rs. 17,923/- as other source.

7.

The matter carried in first appeal by the asseseehas also gone unrepresented in absence of any explanation or submission in response to notices issued on at least five separate dates of hearing ( as apparent from para – 5 of the appellate order ), the Ld First appellate authority has dismissed the appeal sustaining the addition by observing as follows :

7.2.4. As per the facts of the case, it is seen that the appellant had not filed the return of income but had indulged in several cash transactions such as Rs. 29,79,000/- in Bank of Baroda, Rs. 10,70,000/- in Union Bank of India, Rs. 28,79,000/- in Bank of Baroda, Rs. 4,00,000/- in Union Bank of India and Time Deposit of Rs. 4,70,000/-. The Ld. AO as per the provisions of Income Tax Act passed an Order u/s 148A and after taking approval from Pr.CIT, Rajasthan issued Notice u/s 148 on 30.03.2022. The appellant did not file return of income in response to the above notice. Later on, Notices u/s 142(1) dated 12.10.2022 and 14.11.2022 were issued which the appellant did not respond. Hence, Communication Letter (AU)-1 dated 18.11.2022 and Centralised Communication bearing Tracking No. dated

I.T.A. No.475/JPR/2025 Assessment Year: 2015-16 4

25.01.2023 was also issued to which the appellant did not respond. Hence, as a last resort, Show Cause Notice dated 01.02.2023 and 17.02.2023 were issued which also remained uncomplied. Hence, the Ld. AO having left with no option passed an Assessment Order u/s 147 r.w.s 144 at Rs. 78,15,923/-. During the course of appellate proceedings, despite several opportunities, the appellant did not submit any written submission/document/evidences, but on 21.09.2024, just re-submitted Form again. Thus, in view of the above facts and circumstances, I do not see any reason to interfere with the Order as passed by the Ld. AO and hence, confirm the Order of the Ld. AO. Therefore, these grounds are dismissed. Hence, Ground Nos. 2, 3 and 4 are Dismissed.

8.

Now, before the tribunal ,there is no representation ,and it will not serve any purpose to adjourn the case any further. We consider the facts of the case and the grounds of appeal and proceed to dispose of the case on merits after hearing the Ld DR , who relied on the order of the Ld CIT ( A) .

9.

In the grounds of appeal the assessee has prayed for application of the presumptive section 44AD of the Act , in respect of the total cash deposited in his bank account, instead of considering the entire deposit in bank as income .

10.

Even though we are of the opinion that the assessee claim for presumptive taxation u/s 44AD is justifiable , but we are unable to accept the said claim , because we are not aware of the source of the cash deposited in bank ,so as to form any opinion, in absence of any documents proving existence of any eligible

I.T.A. No.475/JPR/2025 Assessment Year: 2015-16 5

business being carried out by the assessee, as per explanation (a) to sub section (6) of section 44AD of the Act.

11.

Moreover, no bank statement or any other particulars are available before us so as to verify the matching bank withdrawals against such bank deposits if any made by the assessee.

12.

As such we uphold the order of the Ld CIT ( A ) on merits and we dismiss the appeal of the assessee.

13.

However, we clarify that if the assessee subsequently, is able to explain his reasons for nonappearance, before the tribunal, he will be at liberty to file application for recall of this order passed exparte, as per procedure within the stipulated time provided by law.

14.

In the result the appeal of the assessee is dismissed .

Order pronounced on 06 .07.2026 under Rule 34(4) of the Income Tax Appellate Tribunal Rules 1963.

Sd/- Sd/-

(ANNAPURNA GUPTA) (UDAYAN DAS GUPTA) Accountant Member Judicial Member Dated:- 06.07.2026 * Ganesh Kumar, Sr. PS Copy of the order forwarded to:

I.T.A. No.475/JPR/2025 Assessment Year: 2015-16 6

(1)The Appellant (2) The Respondent (3) The CIT (4) The CIT (Appeals) (5) The DR, I.T.A.T.

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