NORMA LYDIA AYYASH,MUMBAI vs. INCOME TAX OFFICER WARD 24(3)(2), MUMBAI

IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH, MUMBAI BEFORE SHRI PAVAN KUMAR GADALE, JUDICIAL MEMBER Norma Lydia Ayyash Vs. ITO – 24(3)(2) 15, Goundowli, Andheri Aayakar Bhavan, East, Mumbai – 400069 Mumbai – 400005. "थायी लेखा सं./जीआइआर सं./PAN/GIR No. : AKIPA4487B Appellant .. Respondent Assessee by : Ms.Mansi Ayachit.AR Revenue by : Ms.Richa Gulati.DR Date of Hearing 21.12.2022 Date of Pronouncement 22.12.2022 आदेश / O R D E R The assessee has filed the appeal against the order passed by the National Faceless Appeal Centre (NFAC) – Delhi / CIT(A) u/s 147 r.w.s 144 and 250 of the Act. The assessee has raised the fallowing grounds of appeal:

The learned Commissioner of Income-tax (Appeals) [CIT(A)] erred on the facts and circumstances of the case and in law in dismissing the appeal on the ground that the appeal in Form 35 was not electronically; Norma Lydia Ayyash, Mumbai.

2. The Id. CIT(A) failed to appreciate that as per CBDT Notification No. SO637(E) dated 01.03.2016 furnishing of appeal electronically was mandatory only in the case of a person who is required to furnish return of income electronically under sub-rule (3) of rule 12 and therefore, the appellant was right in furnishing the appeal manually during the year;

3. The appellant prays to your Honours to hold that the ld. CIT(A) erred in dismissing the appeal on technical ground and that he ought to have adjudicated the appeal on merits; B) Disallowance of Rs. 33,233/- being TDS deducted on Interest Income:

1. The learned CIT(A) erred on the facts and in law in dismissing the appeal on technical ground and thereby consequently sustaining the disallowance of Rs. 33,233/-being TDS on Interest Income added to the income of the appellant:

2. The appellant prays to your Honours to allow TDS credit of Rs. 33,233 being the tax deducted at source on Interest Income added to the income of the appellant. Norma Lydia Ayyash, Mumbai. C) Addition of Rs. 3,00,000/- being Life Insurance premium paid to HSBC Life Insurance:

1. The learned CIT(A) erred on the facts and in law in dismissing the appeal on technical ground and thereby consequently sustaining the addition of Rs. 3,00,000/- being life insurance premium paid to HSBC Life Insurance during the year under consideration;

3. The appellant prays that the addition made to income being unwarranted, be kindly deleted; D) Addition of Rs. 10,00,000/- being cash deposit:

2. The Id. AO and Id. CIT(A) failed to appreciate that cash deposited was out of past withdrawals made by the appellant and therefore, the cash deposit is duly explained;

1. The learned CIT(A) erred on the facts and in law in dismissing the appeal on technical ground and thereby Norma Lydia Ayyash, Mumbai. consequently sustaining the addition of Rs. 18,53,532/- being time deposit placed with banks, which represents income earned and received by the appellant outside India in preceding years and therefore, not taxable in India; 2. The appellant prays that the addition made to income being unwarranted, be kindly deleted; F) General: The above grounds of appeal

are without prejudice to one another and the appellant craves leave to add, alter, amend, delete or modify any of the above grounds of appeal.

2. The brief facts of the case are that the assessee is an individual and has not filed the return of income. Whereas the Income Tax Department received information from ITAX Net Cycle - 1 that the assessee has made time deposits and cash deposits in the bank account and TDS was deducted on interest income. The Assessing officer(A.O.) has reason to believe that the income has escaped assessment and issued notice u/s 148 of the Act. The AO referred to the notices issued to the assessee in the assessment order, since there was no compliance, the AO has applied the best judgment assessment and made additions as under:

1. TDS U/s 195 & 194A - 2,37,156/- 2. Premia CANARA HSBC Life - 3,00,000/- Insurance Norma Lydia Ayyash, Mumbai. 3. Deposit of Cash - 10,00,000/- 4. Time Deposit of Rs - 18,53,532/- Finally the AO has assessed the total income of Rs.33,90,670/-and passed the order u/s 144 r.w.s 147 of the Act dated 27.12.2017. 3. Aggrieved by the order, the assessee has filed an appeal before the CIT(A), whereas the CIT(A) has not dealt on the merits of the case and dismissed the appeal as the assessee has filed the manual appeal against the order of the A.O and subsequently the appeal was filed electronically on14.08.2022. Aggrieved by the CIT(A) order, the assessee has filed the appeal with the Hon’ble Tribunal.

4. At the time of hearing the Ld.AR submitted that the CIT(A) erred in dismissing the appeal of the assessee without considering the merits of the case and also submitted that the assessee has filed the appeal electronically on 14.08.2022 whereas the CIT(A) has dismissed the appeal of the assessee which was filed manually on 19.01.2018 and prayed for an opportunity for substantiating the facts with the Norma Lydia Ayyash, Mumbai. material evidence with the lower authorities. Contra, the Ld. DR supported the order of the CIT(A).