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Facts
The assessee filed an appeal against the order confirming the addition made under section 69A of the Income Tax Act. The Assessing Officer observed unexplained cash deposits of ₹.65,78,098/-. The assessee initially denied the deposits but later admitted to ₹.34,34,674/-, failing to provide documentary evidence for the source.
Held
The Tribunal noted the assessee's lack of assistance to the Assessing Officer and CIT(A) notices. Considering the interest of justice, the matter was remanded to the Assessing Officer to provide one more opportunity to the assessee to present complete details.
Key Issues
Whether the CIT(A) was justified in confirming the addition made under section 69A for unexplained cash credits, and whether the assessee should be granted another opportunity to present evidence.
Sections Cited
69A, 148, 143(2), 142(1), 147, 144B
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Before: Shri S.S. Viswanethra Ravi & Shri Jagadish
Year: 2018-19 Kanyakumari Habitat for Humanity, Vs. The Income Tax Officer, 72, Jacob Street Nesamany Nagar, Exemptions Ward, Nagerkoil, Kanyakumari 629 001. Tirunelveli. [PAN:AACTK1063D] (अपीलाथ�/Appellant) (��थ�/Respondent) अपीलाथ� की ओर से / Appellant by : Shri Girish Kumar, Advocate ��थ� की ओर से/Respondent by : Shri A. Sasikumar, CIT सुनवाई की तारीख/ Date of hearing : 24.02.2025 घोषणा की तारीख /Date of Pronouncement : 28.02.2025 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 13.11.2024 passed by the ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi for the assessment year 2018-19.
The assessee raised 14 grounds of appeal amongst which, the only issue emanates for our consideration as to whether the ld. CIT(A) is justified in confirming the addition made under section 69A of the Income Tax Act, 1961 [“Act” in short] made by the Assessing Officer in the facts and circumstances of the case.
3. The Assessing Officer observed that the assessee made cash deposits amounting to ₹.65,78,098/- and no return of income filed. A notice under section 148 of the Act issued on the assessee and in response to which, the assessee filed return of income showing NIL income. Against the statutory notices under section 143(2) and 142(1) of the Act, in its written submission, the assessee denied of making cash deposits of ₹.65,78,098/- in its bank account and submitted that on the basis of bank books, the assessee made cash deposits of ₹.34,34,674/- and furnished copy of bank account statement. However, the assessee fails to explain the source of above cash deposits along with documentary evidence. Since there was no reply against show-cause notice issued, the Assessing Officer treated the cash deposits of ₹.34,34,674/- as unexplained cash credit under section 69A of the Act. On appeal, since there was no response against notices issued, the ld. CIT(A) dismissed the appeal for want of prosecution.
The ld. AR Shri Girish Kumar submits that non appearance before the ld. CIT(A) is neither wilful not wanton. He further submits that due to the circumstances beyond his control, the assessee could not file explanation/documentary evidence in support of his claim. The ld. AR prayed to afford an opportunity to the assessee as the assessee is ready to prosecute her case without fail.
The ld. DR Shri A. Sasikumar, CIT opposed the same and drew our attention to para 5 of the impugned order and argues that the ld. CIT(A) has provided adequate opportunities to make submissions in support of the appeal.
Heard both the parties and perused the material on record. We note that the assessment was completed under section 147 r.w.s. 144B of the Act dated 17.03.2023. 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 ld. CIT(A). We also note that the Assessing Officer issued the show-cause notice dated 10.03.2023 requesting the assessee to furnish documentary evidence for cash deposits as stated at page 2 of the assessment order. Taking into consideration of the submissions of the ld. AR and the ld. DR and in the interest of justice, we deem it proper to remand the matter to the file of the Assessing Officer to afford one more opportunity to the assessee and decide the matter in accordance with law. The assessee is directed to furnish complete details to substantiate its case before the Assessing Officer. Thus, 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 28th February, 2025 at Chennai.