SURENDRA KUMAR CHAUDHARY,GORAKHPUR vs. ITO, GORAKHPUR

IN THE INCOME TAX APPELLATE TRIBUNAL CIRCUIT BENCH (SMC), VARANASI BEFORE SHRI. SUDHANSHU SRIVASTAVA, JUDICIAL MEMBER ITA No.102/VNS/2023 Assessment Year: 2010-11 Surendra Kumar Choudhary v. The ITO Harsh Niwas Gorakhpur Paharpur (U.P) TAN/PAN:AEQPC4512B (Applicant) (Respondent) Applicant by: None Respondent by: Smt. Amandeep Kaur, D.R. O R D E R This appeal has been preferred by the Assessee against the order dated 25.08.2023, passed by the National Faceless Appeal Centre, Delhi (NFAC) for Assessment Year 2010-11.

2.0 The brief facts of the case are that the assessee had not filed the return of income for the year under consideration. The Income Tax Department was in possession of information that the assessee had made cash deposits to the tune of Rs.12,60,000/- and had made investment of Rs.11,50,000/- in Mutual Fund 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 to the assessee. However, in response to notice under section 148 of the Act, there was no response from the side of the assessee. Thereafter, the AO issued statutory

ITA No.102/VNS/2023 Page 2 of 5 notices to the assessee, requiring the assessee to explain the source of cash deposit 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 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 of Rs.12,60,000/- as unexplained deposits of the assessee and added the same to the total income of the assessee under section 68 of the Act.

2.1 The AO further noticed that the assessee had received interest of Rs.5,37,730/- from ICICI Bank, Bank of India and Punjab & Sindh Bank during the year under consideration. Since the assessee had not filed any evidence/documents to substantiate the interest received by the assessee, the AO also added Rs.5,37,730/- to the total income of the assessee.

2.2 The AO completed the assessment under sections 144/147 of the Act, assessing the total income of the assessee at Rs.17,97,730/-.

2.3 Aggrieved, the Assessee preferred an appeal before the NFAC, which simply sustained the additions made by the AO and dismissed the appeal of the assessee.

ITA No.102/VNS/2023 Page 3 of 5 2.4 Now the assessee has approached this Tribunal challenging the order of the NFAC, by raising the following grounds of appeal:

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

ITA No.102/VNS/2023 Page 4 of 5 the NFAC, without adjudicating the issues involved in the appeal, simply sustained the additions made by the AO and dismissed the appeal of 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 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 his case. I also caution 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 11/05/2026.

Sd/- [SUDHANSHU SRIVASTAVA] JUDICIAL MEMBER DATED:11/05/2026 JJ: Copy forwarded to: 1. Appellant 2. Respondent 3. CIT(A) 4. CIT 5. DR

ITA No.102/VNS/2023 Page 5 of 5

By order

Assistant Registrar/DDO