SRINIVAS RAO THUMATI,WARANGAL vs. INCOME TAX OFFICER, WARD-4, WARANGAL

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ITA 755/HYD/2019Status: DisposedITAT Hyderabad30 September 2019AY 2014-154 pages
AI SummaryRemanded

What did the Tribunal hold?

The ITAT set aside the order of the CIT(A) due to the assessee not receiving notices for hearings. The tribunal granted the assessee an opportunity for a fresh hearing before the CIT(A) to present his case and evidence.

What were the facts?

The assessee, a commission agent, had cash deposits in his bank account and claimed deductions under Section 80C, which the Assessing Officer treated as un-explained cash credit and disallowed the excess deduction. The CIT(A) dismissed the appeal for non-appearance and non-furnishing of evidence.

What were the issues?

Whether the CIT(A) erred by dismissing the appeal without ensuring proper service of notices and an opportunity for the assessee to be heard and present evidence.

Which sections of the Income-tax Act were involved?

Section 68,Section 80C

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, HYDERABAD BENCHES “SMC”, HYDERABAD

Before: SMT. P. MADHAVI DEVI

This appeal filed by the assessee for the AY.2014-15, is directed against the order of the Commissioner of Income Tax (Appeals)–12, Hyderabad, dated 07-02-2019.

2.

Brief facts of the case are that, assessee, an individual, is a commission agent on agricultural products. He filed his return of income for the AY.2014-15 on 19-08-2015, admitting total income of Rs.2,17,470/-.

3.

During the course of assessment proceedings u/s.143(3) of the Income Tax Act [Act], the assessee was required to furnish the information necessary for completion of assessment of his income. Assessee was also asked to produce statements of bank accounts maintained by the assessee

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during the F.Y.2013-14. The assessee submitted details and on perusal of the same, the Assessing Officer (AO) noticed that there were huge cash deposits in his Account No.1514204415 maintained with A.P. Grameena Vikas Bank. Assessee was therefore asked to explain the sources for the cash deposits and FDRs. Assessee could not furnish the relevant material and therefore, AO treated the cash deposits into bank account amounting to Rs.10,87,500/- as un-explained cash credit u/s.68 of the Act and brought it to tax. Further, the AO also noted that the assessee has not offered the interest income to an extent of Rs.5,7,56/- to tax and he accordingly brought it to tax. The AO also noticed that assessee has claimed Rs.38,512/- towards deduction u/s.80C of the Act but could produce the proof to an extent of Rs.4,476/- only. The balance claim of Rs.34,036/- was accordingly brought to tax.

3.1. Aggrieved, the assessee preferred an appeal before the CIT(A), who confirmed the order of AO on the ground that assessee has not appeared before her [CIT(A)] and also that no evidence has been filed before her in support of the assessee’s claims.

3.2. Aggrieved, the assessee is in second appeal before the ITAT.

4.

At the time of hearing, Ld.Counsel for the assessee submitted that initially, the appeal was filed with CIT(A)-2, Hyderabad and subsequently it was transferred to the CIT(A)- 12, Hyderabad, vide Notification dt.03-01-2019. He submitted

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that the CIT(A)-12 has recorded that the notices dt.15-01-2019 and 25-01-2019 were issued and served upon the assessee. She submitted that the assessee has not received the notices and therefore he prayed that the order of CIT(A) may be set aside and assessee be given an opportunity to explain his case.

5.

Ld.DR was also heard.

6.

Taking note of the fact that the CIT(A) has dismissed the appeal for non-appearance of the assessee or his Counsel and for non-furnishing of the relevant material. We find that only two dates of hearing were given by the present CIT(A). Therefore, I deem it fit and proper to set aside the order of CIT(A) for fresh hearing, after giving due opportunity of hearing to the assessee. The assessee shall also co-operate with the CIT(A) by furnishing the relevant material for speedy disposal of the appeal.

7.

In the result, the appeal of assessee is treated as allowed for statistical purposes.

Order pronounced in the open court on 30th September, 2019

Sd/- (P. MADHAVI DEVI) JUDICIAL MEMBER Hyderabad, Dated: 30-09-2019 TNMM

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Copy to :

1.

Shri Srinivas Rao Thumati, H.No.1-36, Village Konkapaka Mandal Srinagar, Parvathagiri, Warangal. 2. Income Tax Officer, Ward-4, Warangal.

3.

CIT(Appeals)-12, Hyderabad.

4.

Pr.CIT-3, Hyderabad.

5.

D.R. ITAT, Hyderabad.

6.

Guard File.

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