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Facts
The assessee failed to file her return of income for AY 2017-18 and deposited Rs. 54,76,300/- in her bank account which remained unexplained. The case was reopened, notices were issued under sections 147 and 148, and subsequently under section 142(1), but the assessee failed to respond or provide explanations.
Held
The Assessing Officer treated the Rs. 54,76,300/- as unexplained cash credit under section 68 and added it to the total income. Penalty proceedings under section 271AAC(1) were also initiated. The CIT(Appeals) dismissed the assessee's appeal due to non-submission of explanations and evidence.
Key Issues
Whether the CIT(Appeals) was justified in dismissing the appeal without going into the merits due to non-submission of explanation by the assessee.
Sections Cited
147, 148, 142(1), 68, 271AAC(1)
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Income Tax Appellate Tribunal, ‘SMC’ BENCH, KOLKATA
Before: Shri Duvvuru RL Reddy, Vice-(KZ)
Assessment Year: 2018-2019 Pammi Jaiswal,………………….………..………Appellant 75/B, 4th Floor, Uttar Panchanangram Mart, VIP Nagar, W.B. Pin Code No. 700100 [PAN:BCNPJ3281N] -Vs.- Income Tax Officer,……………………………...Respondent Ward-33(2), Kolkata, 10B, Middleton Row, Kolkata-700071 Appearances by: Shri Debesh Poddar, A.R., 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 25, 2025 Date of pronouncing the order: June 26, 2025 O R D E R
The present appeal is directed at the instance of assessee against the order of ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi dated 1st October 2024 passed for Assessment Year 2018-19.
Brief facts of the case are that the assessee did not file her return of income for the assessment year 2017-18. As per information received through INSIGHT Portal, that 1 (A.Y. 2018-2019) Pammi Jaiswal the assessee deposited Rs.54,76,300/- in Canara Bank account which remained unexplained during the financial year 2017-18 relevant to the assessment year 2018-19, but the assessee had not filed her return of income. On the basis of details, the case was reopened under section 147 with prior approval from appropriate authority, notice under section 148 was issued and duly served upon the assessee. The assessee failed to file her return under section 148. Accordingly notice under section 142(1) was issued and duly served on the assessee calling for the basic details of the case for the purpose of verification of the return and accounts. Return under section 148 of the Act was not filed by the assessee in compliance. Thereafter notice under section 142(1)(i) of the Income Tax Act was issued to the assessee, but there was no reply/response from the side of assessee. Thereafter show-cause notice was issued mentioning to submit detailed compliance along with the documents and written submission. Without getting no response/explanation from the assessee, the ld. Assessing Officer treated the amount of Rs.54,76,300/- as unexplained cash credit under section 68 and added to the total income of the assessee at Rs.5,47,630/- @ 10% as commission income as the assessee furnished inaccurate particulars of her income in the return by not disclosing accurate income and tried to avoid payment of tax and, therefore, penalty proceedings under section 271AAC(1) of the Act were
The contention of the ld. Counsel for the assessee is that the ld. CIT(Appeals) dismissed the appeal of the assessee due to non- submission of any explanation filed by the assessee to substantiate her claim and without going into the merit of the case. Therefore, ld. Counsel pleaded to set aside the order passed by the ld. CIT(Appeals).
On the other hand, ld. Departmental Representative submitted that sufficient opportunity was being provided to the assessee at the assessment proceedings as well as appellant proceedings but the assessee failed to submit documentary evidence in respect of credits and cash deposits made in his accounts during the year under consideration and has not submitted any documentary evidences in compliance to the statutory notices and show-cause notice issued. Therefore, the ld. CIT(Appeals) has no other option except dismissing the appeal and he pleaded to uphold the order passed by the ld. CIT(Appeals).
I have heard both the sides and perused the material available on record. The ld. CIT(Appeals) dismissed the appeal by mentioning in his appellate order in para 6.6.1 at page 8, which reads as under:- “6.6.1. I have carefully considered the facts of the case as well as the grounds of appeal
filed by the appellant. It is clear from the conduct of the appellant that there is no desire to pursue the appeal and that the appellant has no submission to make in support of the ground of appeal. The 3. (A.Y. 2018-2019) Pammi Jaiswal assessee was non-compliant before the Assessing officer and she has continued with the same approach in the appellate proceedings The conspicuous absence of any effort by the appellant to substantiate its contentions is unequivocal proof that she has no inclination to present any meaningful submissions in support of the raised grounds. In light of this evident disregard for due process and the categorical and willful disinterest demonstrated by the appellant, the addition of Rs.5,47,630/- on account of unexplained cash credits made u/s 68 of the Income Tax Act are hereby confirmed. Accordingly, the ground of appeal of the appellant is dismissed”.
Therefore, by considering the totality of the facts and circumstances of the case, and in order to ensure the principle of natural justice, I am of the view that it is a fit case to provide one more opportunity to the assessee. Therefore, I remit the matter back to the file of ld. CIT(Appeals) with a direction to dispose of the appeal without any inference on the observations of earlier order passed by him. At the same breath, I also hereby caution the assessee to promptly co-operate with the proceedings before the Ld. CIT(Appeals) failing which the Ld. CIT(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.