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Facts
The assessee's case was selected for scrutiny, and the Assessing Officer found unexplained cash deposits totaling Rs. 4,13,000 in her bank accounts. The assessee failed to explain the source of these deposits or produce a cash book, leading the AO to treat the amount as concealed income. The CIT(A) dismissed the assessee's appeal ex-parte due to lack of evidence.
Held
The ITAT set aside the ex-parte order of the Addl./JCIT(Appeals) to ensure principles of natural justice. The matter was remitted back to the Addl./JCIT(Appeals) with a direction to grant the assessee another opportunity to present her case, with a caution for cooperation.
Key Issues
Whether the dismissal of the appeal by CIT(A) ex-parte was justified, and if the assessee should be granted another opportunity to explain the source of cash deposits.
Sections Cited
143(2)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, ‘SMC’ BENCH, KOLKATA
Before: Shri Duvvuru RL Reddy, Vice-(KZ)
Assessment Year: 2015-2016 Radha Singh,………………………………………Appellant Bihari Kunj, Makhania Kuan, Patna-800004, Bihar [PAN:AYAPS0975Q] -Vs.- Assistant Commissioner of Income Tax,…..Respondent Circle-37, Kolkata, Aayakar Bhawan, P-7, Chowringhee Square, Kolkata-700069 Appearances by: N o n e, appeared on behalf of the assessee Shri Susanta Saha, Addl. CIT, Sr. D.R., appeared on behalf of the Revenue Date of concluding the hearing: June 26, 2025 Date of pronouncing the order: July 22, 2025 O R D E R
The present appeal is directed at the instance of assessee against the order of Id. Addl./Joint Commissioner of Income Tax (Appeals)-1, Nagpur dated 26.06.2024 passed for Assessment Year 2015-2016.
The facts in brief are that the assessee is an individual, who filed her return of income on 27.02.2017 electronically disclosing (A.Y. 2015-2016) Radha Singh total income of Rs.3,29,190/-. The case was selected for scrutiny through CASS. Notices under section 143(2) of the Act was issued on 18.09.2017 and served on the assessee. In response to the notices, ld. AR of the assessee appeared and submitted documents and explained the return, which were kept on record. The assessee during the year under consideration earned salary and income from other sources. During the course of assessment proceedings, it was noticed that the assessee maintains two bank accounts in the Punjab National Bank and total deposit in the two Bank accounts was Rs.4,13,000/-. The assessee was asked to explain the source of cash deposited in the bank accounts, but the assessee failed to explain the source of such cash deposits into the Bank. Despite several reminders, the assessee was unable to produce the cash book. Therefore, the onus to prove the identity, creditworthiness and genuineness of the transaction lies with the assessee. As the assessee did not submit the proper evidence in support of her claim, the ld. Assessing Officer considered the deposited amount as concealed income and assessed total income of the assessee at Rs.7,42,190/-.
On being aggrieved, the assessee preferred appeal before the ld. CIT(Appeals). The ld. Addl./JCIT(Appeals) dismissed the appeal of the assessee ex-parte as the assessee did not bring on record any supporting evidence in support of ground raised by her after providing sufficient opportunities.
At the outset, ld. D.R. brought to my notice that the assessee did not produce the relevant documents as asked by the ld. Assessing Officer at the time of assessment proceedings and ld. Addl. /JCIT (Appeals) during the appellate proceedings. The ld. Addl. /JCIT (Appeals) has given many opportunities to the assessee and the assessee neither filed written submission nor any evidence before the Addl. /JCIT (Appeals). He further submitted that before the ITAT, the assessee did not substantiate her claim. Therefore, he pleaded to uphold the orders passed by the revenue authorities.
I have heard the Ld. Departmental Representative and perused the material available on record. Considering the facts and circumstances of the case, I am inclined to set aside the order passed by the Addl. /JCIT (Appeals) in order to meet the principle of natural justice, and remit the matter back to the file of ld. Addl. /JCIT (Appeals) with a direction to provide one more opportunity of being heard to the assessee. At the same breath, I also hereby caution the assessee to promptly co-operate with the proceedings before the ld. Addl. /JCIT (Appeals) failing which the Ld. Addl. /JCIT (Appeals) shall be at liberty to pass appropriate order in accordance with law and merits of the case, based on the materials available on the record. Thus, the grounds raised by the assessee in the appeal are allowed for statistical purposes.
In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open Court on 22/07/2025.