ANURAG SRIVASTAVA,BALLIA vs. INCOME TAX OFFICER, WARD - 2 (4), BALLIA

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ITA 149/VNS/2024Status: HeardITAT Varanasi11 June 2026AY 2015-20165 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal restored the issues in dispute back to the Assessing Officer for a de novo order. This was to provide the assessee with a reasonable opportunity to present their case and evidence.

What were the facts?

The assessee's appeal against an assessment order for AY 2015-16 was dismissed by the CIT(A). The assessee argued that the assessment and appeal orders were passed without a reasonable opportunity to present their case and evidence regarding the source of funds.

What were the issues?

Whether the assessee was provided with a reasonable opportunity of being heard during the assessment and appeal proceedings. Whether the evidence regarding the source of funds for investments should be considered.

Which sections of the Income-tax Act were involved?

Section 147,Section 144,Section 144B

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, VARANASI BENCH, VARANASI

Before: SHRI ANADEE NATH MISSHRA

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 09.07.2024 for the AY 2015-16. The assessee has raised the following grounds of appeal:

“1. Appellant lives in the village with his old aged elders like father, mother and grandfather, who were fully dependent on him. Even in the assessment AO has accepted the amount of transfer of property of grandfather in the source of appellant but AO does not considered the contribution or gift given by father, grandfather and self-savings of the appellant.

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2.

Source of cash gift from father is on the basis of his savings and agricultural income as well, hence must be accepted. The source of gift is supported with the savings in family out of pension of grandfather and family pension of his late grandmother. Hence the same must be accepted and necessary relief should be given.

3.

Appellant was in possession of cash amount, as shown in the sources on the basis of documentary evidence but the income was below the taxable limit, so the Income Tax Return was not be filed.

4.

Natural Justice- Appellant had requested for adjournment on date 15/02/2023 up to date 02/03/2023, but before the end of adjournment date e- submission was closed and when appellant made request to adjournment through Income Tax portal-grievance on 25/02/2023, the resolution came that they have no authority and faceless assessment portal is different from them and the assessment order was passed on date 27 Feb 2023, whereas time-barring was going to expire on 31/03/2023. Appellant had requested adjournment but not accepted, so appellant had submitted the additional documents in the Appeal in Form 35 at Para12.1, where appellant had requested to consider it in total 8 parts, under the provision of rule 46A, which was not considered during the appeal. Appellant was trying his best and to gather the source of income, so went to District Treasury Office, Ballia to get the Pension certificates of his grandfather, who was receiving the self-pension and Family pension of appellant's grandmother and such certificates were never needed by any Govt. offices and authority, due to which not kept in the record. Thus, the adjournment sought was in good faith and must be considered and the additional submitted documents should be accepted.

Appellant had faced the Faceless Scrutiny first time, as he had no income taxable income, whereas the sources of investment came from the elders of family, like Father, Grandfather and self-savings.

Closure of assessment proceedings before due date and without time barring limitation and not providing opportunity to appellant is certainly the against natural justice and must be considered.

5.

Source of Investment- Appellant had submitted the source of investment in the purchase of Land, as detailed below-

Father's contribution- Rs. 6.10 lacs

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Self savings- Rs. 4.90 lacs

It is well understood that the regular books of account were maintained by the assessee, who are engaged in the business and profession, otherwise person, who are dependent on the Salary and pension or agriculture, not maintained the regular books of account. The family of appellant consist of following person-

Self- salaried employee Father-Family agricultural produce Grandfather pension Grandfather-grandmother family pension Appellant and his family and all the elderly like father, mother, grandfather were dependent on pension and family pension after their retirement, further no illness or critical illness to them, only the unmarried appellant living with them, all these factors were not considered during the appeal.

6.

Cash Retention- This is a common thinking in all the old aged person about the cash retention in anticipation of any Emergency or sudden need, thus they retain cash mostly, the appellant was the only young, unmarried and male person in the family and all the responsibilities and home works were done and managed by him. Appellant lives in the rural area, which is almost 20 Kms. away from the main town and no medical facilities were available, further there is only one branch of Nationalized Bank- Union Bank of India in the village- Garwar and his grandfather had opened another Bank account in the Bank of Baroda for his deceased wife's family pension in the neighbouring village- Balesara, which is more than 5 Kms. away from the appellant house. The networking and Link problem for any Bank is always a big problem for anyone not in village but also in town, keeping in view all such factors, the father and grandfather of appellant used to keep the cash at home to meet any eventuality. Thus, cash retention of appellant and his family members are a valid reason to retain the cash is a normal phenomenon and must be allowed and the submission given by the appellant must be considered and necessary relief should be given.

7.

Further Ground of Appeal-Appellant will produce the further ground of appeal at the time of hearing.”

(B) In this case, assessment order dated 27.02.2023 was passed by the Assessing Officer under section 147 r.w.s. 144 read with section 144B of the

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Income Tax Act, 1961 (the Act) wherein the assessee’s income was determined at Nil. The assessee’s appeal against the assessment order was dismissed by the Learned CIT(A) vide impugned appellate order dated 09.07.2024. The present appeal has been filed by the assessee against the aforesaid impugned appellate order dated 09.07.2024.

(C) 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 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.

(D) 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 11/06/2026)

Sd/- (ANADEE NATH MISSHRA) Accountant Member Date: 11/06/2026 SK, Sr.PS

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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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