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Facts
The Assessing Officer received information about a cash deposit of ₹.10,66,000/- by the assessee, who had not filed a return of income. Despite notices, the assessee failed to provide details for the cash deposit, which was added to her income. The CIT(A) confirmed the addition.
Held
The Tribunal noted the assessee's absence and the lack of compliance with notices. However, considering the death of the assessee's husband, the matter was remanded to the Assessing Officer for one more opportunity to present details.
Key Issues
Whether the cash deposit made by the assessee is unexplained and should be added to her income, or if there are mitigating circumstances to allow further opportunity.
Sections Cited
148, 143(3)
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Before: Shri S.S. Viswanethra Ravi&
Year: 2013-14 Arunkumar Ramalakshmi, Vs. The Income Tax Officer, D1, Garudha Apartment, Ishwarya Ward 2(1), Garden, Villarasampatti, Erode. Erode 638 107. [PAN:ANKPR7159Q] (अपीलाथ�/Appellant) (��थ�/Respondent) अपीलाथ� की ओर से / Appellant by : None ��थ� की ओर से/Respondent by : Ms. R. Anita, Addl. CIT सुनवाई की तारीख/ Date of hearing : 22.01.2025 घोषणा की तारीख /Date of Pronouncement : 07.02.2025 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 27.09.2024 passed by the ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre [NFAC], Delhi for the assessment year 2013-14.
We find no representation on behalf of the assessee or any application filed seeking adjournment. Thus, the assessee called absent and set exparte. We proceed to decide the appeal on merits after hearing the ld. DR basing on the material available on record.
At the outset, we note that the Assessing Officer received information that the assessee made cash deposit of ₹.10,66,000/- and found no return of income filed. Against the notice issued under section 148 of the Income Tax Act, 1961 [“Act” in short], the assessee filed the return of income declaring total income of ₹.2,00,000/- on account of income from other sources. The Assessing Officer asked the assessee to furnish copy of bank statement, copy of AS26 reconciliation of income, etc., but, however, the assessee did not file any reply or complied with the details called for. The assessee submitted a sheet reflecting the amount of money received by her as reproduced at para 7 of the assessment order, which is reproduced herein below: Salary based savings ₹.5,17,500/- Gift based savings ₹.3,80,001/- Interest income (Financing to relatives) – ₹.56,649/- Total savings as on 01.04.2012 ₹.10,45,001/- Less - transactions during the year 1. Interest income ₹.2,00,000/- 2. Loans given to relatives – ₹.10,00,000/- 4. The Assessing Officer asked the assessee to furnish details of sources of cash deposits with proper documentary evidences. Since the assessee failed to furnish any details, the Assessing Officer treated the cash deposit of ₹.10,66,000/- as unexplained credit and added to the total income of the assessee. On appeal, the ld. CIT(A) confirmed the additions/disallowances and dismissed the appeal of the assessee since the assessee could not furnish any submissions in support of grounds raised by her or there was any response to the notices issued by the ld. CIT(A).
We note that the Assessing Officer issued show cause notice dated 19.08.2021 in the form of draft assessment order requesting the assessee to furnish various details as stated at para 8 of the assessment order. On perusal of the assessment order as well as impugned order, we note that there was no assistance from the assessee to the notices issued by the Assessing Officer as well as ld. CIT(A). We find that the ld. CIT(A) issued 3 notices to the assessee, but, there was no compliance. In the grounds of appeal, the assessee made a submission that the assessee was unable to proceed with the case due to the untimely death of her husband and produced copy of the death certificate on record. Considering the facts and circumstances of the case 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 her 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 07th February, 2025 at Chennai.