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Facts
The assessee made huge cash deposits of ₹6,16,68,376/- for AY 2019-20 but failed to file a return of income. The Assessing Officer initiated proceedings under Section 147 and issued multiple notices (Sections 148, 142(1), 144) which the assessee repeatedly failed to comply with. Consequently, the AO treated the deposits as unexplained money under Section 69A, taxable under Section 115BBE, and the CIT(A) dismissed the assessee's appeal for non-prosecution due to continued non-compliance.
Held
The Tribunal acknowledged the assessee's history of non-compliance but, considering an undertaking affidavit from the assessee's Secretary and in the interest of justice, decided to remand the matter back to the Assessing Officer. The remand is conditional on the assessee paying ₹5,000/- to the State Legal Aid Authority within 30 days, after which the AO is directed to decide the issue afresh based on submissions and evidence from the assessee.
Key Issues
Whether the CIT(A) was justified in confirming the assessment order due to the assessee's non-compliance, and if the assessee should be granted another opportunity to explain the source of the unexplained cash deposits.
Sections Cited
147, 148, 148A(d), 142(1), 144, 69A, 115BBE, 144B
AI-generated summary — verify with the full judgment below
Before: Shri S.S. Viswanethra Ravi & Shri Jagadish
Year: 2019-20 R 1618 Varadharajapuram Primary Vs. The Income Tax Officer, Agri. Co-op. Society, 6/69A, Ward 2, Thirunarayanapuram, Tiruchirapalli. Tiruchirapalli 621 203. [PAN:AABAR2403E] (अपीलाथ�/Appellant) (��थ�/Respondent) अपीलाथ� की ओर से / Appellant by : Shri T. Vasudevan, Advocate ��थ� की ओर से/Respondent by : Shri A. Sasi Kumar, CIT सुनवाई की तारीख/ Date of hearing : 22.04.2025 घोषणा की तारीख /Date of Pronouncement : 30.04.2025 आदेश /O R D E R
PER S.S. VISWANETHRA RAVI, JUDICIAL MEMBER:
This appeal filed by the assessee is directed against the order dated 20.02.2025 passed by the ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi for the assessment year 2019-20.
The assessee raised 7 grounds of appeal amongst which, the only issue emanates for our consideration as to whether the ld. CIT(A) is justified in confirming the assessment order passed by the Assessing Officer in the facts and circumstances of the case.
3. We note that the Assessing Officer initiated assessment proceedings under section 147 of the Income Tax Act, 1961 [“Act” in short] for AY 2019-20 on the basis of information that the assessee made huge cash deposits during the previous year relevant to the AY 2019-20. The assessee did not file return of income for AY 2019-20. Thus, the Assessing Officer issued notice under section 148 of the Act dated 30.03.2023 after following due procedure under section 148A(d) of the Act followed by notice under section 142(1) of the Act dated 10.07.2023. However, the assessee did not comply with the same. The Assessing Officer issued further notice under section 142(1) of the Act dated 27.07.2023, but, however, the assessee again failed to comply with the same. Thereafter, the Assessing Officer issued show-cause notice under section 144 of the Act dated 06.09.2023 and however, the assessee again failed to comply with the same. After collecting bank statement from Trichy District Central Co-op. Bank Ltd., the Assessing Officer noted that there were total credits including cash deposits of Rs.6,16,68,376/-. Since the assessee failed to comply with various notices issued and not explained the sources for the said money/deposits/credits and offered for taxation, the Assessing Officer treated the entire cash deposits of ₹.6,16,68,376/- as unexplained money under section 69A of the Act and chargeable to tax under section 115BBE of the Act and added to the total income of the assessee. On appeal, the ld. CIT(A) dismissed the appeal of the assessee for want of prosecution since the assessee did not comply with the notices issued by the ld. CIT(A).
The ld. AR Shri T. Vasudevan submits that non-compliance to the notices issued by the ld. CIT(A) and the Assessing Officer is neither wilful nor deliberate but due to circumstances beyond his control. By filing an affidavit of the Secretary of the assessee society, the ld. AR undertakes that the assessee shall appear and furnish complete details before the Assessing Officer without fail if the Tribunal afford an opportunity of being heard to the assessee.
The ld. DR Shri A. Sasi Kumar, CIT opposed the same and drew our attention to para 1.3 to 4.4 of the assessment order as well as para 3 of the impugned order and argues that the Assessing Officer and ld. CIT(A) afforded ample opportunities to the assessee, but, it was not availed. He vehemently argued that costs may be imposed in case this Tribunal afford an opportunity by remanding the matter to the file of the Assessing Officer.
Heard both the parties and perused the material on record. We note that the assessment was completed under section 147 r.w.s. 144 r.w.s. 144B of the Act dated 27.12.2023. On perusal of the assessment order as well as impugned order, we note that there was no assistance from the assessee to the show-cause notice issued by the Assessing Officer as well as hearing notices issued by the ld. CIT(A). We also note that the Assessing Officer issued the show-cause notice dated 06.09.2023 proposing to add the above said cash deposits as unexplained income and requested to comply with the notice, but, however, there was no response from the assessee. Taking into consideration of the undertaking given vide notarized affidavit dated 22.04.2025 deposed by the Secretary of the assessee society, the submissions of the ld. DR and in the interest of justice, we deem it proper to afford one more opportunity and remand the matter to the file of the Assessing Officer subject to the condition of payment of ₹.5,000/- in favour of the State Legal Aid Authority, Hon’ble Madras High Court within 30 days from the date of receipt of this order and the Assessing Officer shall satisfy the payment of cost and decide the issue afresh after considering the written submissions/ documentary evidences as may be filed by the assessee to substantiate its claim. Thus, the grounds raised by the assessee are allowed for statistical purposes.
In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on 30th April, 2025 at Chennai.