VANITHA,MYSURU vs. INCOME TAX OFFICER, WARD 1, , CHAMARAJANAGARA

ITA 2828/BANG/2025Status: DisposedITAT Bangalore30 September 2026AY 2016-176 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal noted that the CIT(A) had passed an ex parte order due to the assessee's non-appearance. Since the assessee was now represented and wished to pursue the appeal on merits, the Tribunal, in the interest of justice, set aside the impugned order of the CIT(A). The matter was restored to the file of the CIT(A) for de novo adjudication on merits, allowing the assessee to file all details and submissions. The assessee was also permitted to raise jurisdictional grounds, which were to be considered as per law. The Tribunal directed the assessee to appear before the CIT(A) on all hearing dates. The grounds raised by the assessee were allowed for statistical purposes.

What were the facts?

The assessee, Vanitha, is an individual who did not file her return of income for Assessment Year 2016-17. The Revenue initiated assessment proceedings based on information of cash deposits totaling ₹52,59,100 in her bank accounts. A show cause notice under section 148A(b) was issued, to which the assessee did not respond. Consequently, an order under section 148A(d) was passed, deeming it fit for issuing a notice under section 148, which was issued on 28/02/2023. During assessment, the Assessing Officer (AO) added ₹5,20,000 (sundry debtors), ₹25,10,200 (accumulated cash balance), ₹5,08,450 (closing stock), and ₹7,50,000 (own savings) as unexplained money. The assessee appealed to the CIT(A), who dismissed the appeal ex parte due to the assessee's non-appearance. The assessee is now before the ITAT.

What were the issues?

1. Whether the assessment proceedings initiated by the Jurisdictional Assessing Officer (JAO) were valid, given that the notice for initiation should have been issued in a faceless manner by a Faceless Assessing Officer (FAO) as per Section 151A of the Income Tax Act, 1961. 2. Whether the assessment order is hit by limitation, considering the assessed income was less than ₹50.00 Lakhs, requiring initiation within 3 years from the end of the assessment year, whereas the notice under section 148A was issued on 2nd February 2023, beyond the 31st March 2020 deadline. 3. Whether the JAO failed to obtain prior approval from the specified authority to conduct an enquiry and issue a notice of assessment under Section 147 of the Income Tax Act, 1961. 4. Whether the CIT(A) erred in upholding the AO's rejection of the sources explained by the assessee for cash deposits without assigning proper reasons, despite documentary evidence. Assessee's Contentions: The assessee argued that the JAO lacked jurisdiction due to the requirement of faceless assessment under Section 151A, that the assessment was time-barred, and that the AO rejected explanations without proper reasons. Revenue's Contentions: The judgment does not explicitly record the revenue's contentions before the ITAT. However, the AO's actions indicate a rejection of the assessee's explanations for cash deposits.

Which sections of the Income-tax Act were involved?

Section 151A,Section 147,Section 148A,Section 148,Section 144B,Section 250

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, BANGALORE BENCHES, BANGALORE

Before: SHRI PRASHANT MAHARISHI & SHRI SANDEEP SINGH KARHAIL

PER SANDEEP SINGH KARHAIL, JUDICIAL MEMBER:

The assessee has filed the present appeal against the impugned order dated 08/09/2025, passed under section 250 of the Income Tax Act, 1961 (“the Act”) by the learned Commissioner of Income Tax (Appeals), National

ITA 2828/BANG/2025 VANITHA

Faceless Appeal Centre, Delhi, [“learned CIT(A)”

The order continues below.

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