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Facts
The assessee, engaged in money transfer and mobile recharge business, declared an income of Rs.3,25,070. The AO made an addition of Rs.8,94,000 for cash deposits during demonetization. The CIT(A) affirmed this addition.
Held
The Tribunal noted that the impugned order was ex-parte and the CIT(A) could not decide the issue properly due to lack of relevant documents from the assessee. Therefore, the case was remanded for fresh adjudication.
Key Issues
Whether the impugned ex-parte order passed by the CIT(A) was based on proper adjudication of facts and merits. Whether the case should be remanded for fresh consideration.
Sections Cited
250
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, MUMBAI BENCH “SMC”, MUMBAI
Before: SHRI NARENDER KUMAR CHOUDHRY
Per : Narender Kumar Choudhry, Judicial Member:
This appeal has been preferred by the Assessee against the order dated 31.12.2024, impugned herein, passed by the Ld. Addl./Joint Commissioner of Income Tax (Appeals) (in short “Ld. Addl./Joint Commissioner”) under section 250 of the Income Tax Act, 1961 (in short ‘the Act’) for the A.Y. 2017-18.
In this case, the Assessee being an individual engaged in the business of Money transfer and Mobile recharge through his proprietary concern M/s Shree Sadguru Mobile Shop {Mobile sales & service and recharge}, has declaring total income of Rs.3,25,070/- by filing return of income on dated 28-03-2018, which was selected for scrutiny under “CASS” with the reason “Cash deposit during the year”.
The Assessing Officer (AO) vide assessment order dated 30- 12-2019, ultimately made the addition of Rs.8,94,000/- on account of cash deposited during the demonetization period.
The Assessee, being aggrieved, challenged the said addition before the Ld. Addl./Joint Commissioner, who vide impugned order affirmed the said addition, by dismissing appeal of the Assessee. Therefore, the Assessee, being aggrieved, is in appeal before this Court.
Heard the parties and perused the material available on record. The Ld. D.R. relied on the orders passed by the authorities below. Whereas the Assessee has sought for quashing of the impugned order. Admittedly the impugned order is an ex-parte and the ld. Addl./Joint Commissioner in the absence of relevant reply and documents, which the Assessee failed to file , precluded from deciding the issue in its rights perspective and proper manner and therefore for just and proper decision of the case and for the ends of substantial justice, this Court is inclined to remand the instant case to the file of the Ld. Commissioner for decision afresh on merits, subject to deposit of Rs.2,100/- in the PM care fund, within 15 days from today, suffice to say by affording reasonable opportunity to the Assessee to substantiate its claim before the Ld. Commissioner.
The Assessee is also directed to cooperate with the appellate proceedings and to file the relevant submissions/documents, which would be essentially required by the Ld. Commissioner for proper adjudication of the case. It is clarified that in case of further default the Assessee shall not be entitled for any leniency. Thus, the case is remanded the file of Ld. Commissioner, accordingly.
In the result, the appeal filed by the Assessee stands allowed for statistical purposes.
Order pronounced in the open court on 02.06.2025.