NARSHI MAVJI RAGHWANI,MUMBAI vs. ITO 29(2)(4), MUMBAI
Income Tax Appellate Tribunal, Mumbai “SMC” Bench, Mumbai.
Before: Smt. Beena Pillai (JM) & Shri Omkareshwar Chidara (AM) Narshi Mavji Raghwani C-3/302 Lok Everest J-S Dosa Road, Mulund West, Mumbai-400080
Per Omkareshwar Chidara (AM) :-
In this above captioned appeal, the Ld. AO made an addition of Rs. 12
Lakhs under section 68 of the I.T. Act, as there is no satisfactory explanation with respect to source of deposits in the bank account to the extent of Rs. 10
Lakhs, Rs. 1 Lakh and Rs. 1 Lakh on different dates. From the assessment order, it is observed that names of depositors were mentioned, but as the nature and source of the same was not disclosed by the appellant, the Ld.
AO made the above addition of Rs. 12 Lakhs.
Aggrieved by the addition made by the Ld. AO, and appeal was preferred by the appellant before Ld. CIT(A). The Ld. CIT(A) gave five opportunities to the appellant as mentioned in para 2 of the appellate order. As there is no response from the appellant, the appeal was dismissed.
The following grounds of appeal were raised before the ITAT.
The Ld.AO has wrongly added Rs.12,00,000/- under section 68, and ADDL/ JCIT (NFAQ erred in confirming the same, despite the fact that the Assessee has fully discharged the identity, genuineness and creditworthiness of the lender in terms if sec.68 of the Income Tax
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Act,1961. And the transactions are confirmed by counter parties and through banking channel.
The Ld.AO and ADDL/ JC1T (NFAC) ought to have considered that the appellant need to make payment to the workers in the bracket of 0.10 lakhs to 1.10 lakhs which is very often in the construction line of business.
The Ld. AO and ADDL/ JCIT (NFAC) misinterpreted the findings of the investigation wing and considered the same as non genuine.
Whether there is any delay in filing of appeal NO.
During the hearing proceedings, the Ld. AR of the appellant has filed written submission stating that the notices were sent by Ld. CIT(A) during Covid period and hence there was no proper compliance. It was further pleaded that on merits, the appellant has got fair chances to win the appeal. In proof of the same, a paper book containing copy of pass book, ledger account of lenders were also filed to prove the genuineness of credits. The Ld. DR relied on the lower authorities and argued that as there is no compliance by the appellant, the addition made by Ld. AO should be confirmed.
After hearing both sides, it is decided to give one more opportunity to the appellant as the papers/documents/evidences filed before us, were not filed before the lower authorities to demonstrate the genuineness of the credits. Moreover, it is observed from the order of Ld. CIT(A) that the issues were not discussed on merits and the appeal of appellant was dismissed for non-prosecution. Hon'ble Bombay High Court in the case of CIT, Nagpur Vs. Premkumar Arjundas Luthra, held that the appeal of appellant cannot be dismissed because of non-prosecution but the appellate order should discuss the merits of the case and the law does not permit Ld. CIT(A) to dismiss the appeal for non-prosecution as is evidenced from the provisions of the Act.
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5. In view of the above juri ictional High Court’s order, the appeal order of Ld. CIT(A) is set aside and in the interest of justice, Ld. CIT(A) directed to pass the appellate order after discussing all the issues arising out of the assessment order. Needless to say that the appellant should be given adequate opportunity before passing the appeal order.
The appeal of the appellant is allowed for statistical purposes. Order pronounced in the open Court on 12/02/2025. (BEENA PILLAI) ACCOUNTANT MEMBER Mumbai; Dated: 12/02/2025
Copy of the Order forwarded to :
The Appellant 2. The Respondent. 3. CIT 4. DR, ITAT, Mumbai 5. Guard file.
BY ORDER,
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