SMT PRITI JAYESH VASSA,MUMBAI vs. ITO 32(2)(5), MUMBAI

PDF · subscribers
ITA 5898/MUM/2024Status: DisposedITAT Mumbai07 January 2025AY 2017-18Bench: SHRI NARENDER KUMAR CHOUDHRY (Judicial Member), SHRI OMKARESHWAR CHIDARA ( (Accountant Member)5 pages
AI SummaryRemanded

What did the Tribunal hold?

Citing a Bombay High Court judgment, the ITAT held that the Ld. CIT(A) cannot dismiss an appeal for non-prosecution without adjudicating on merits. Considering the assessee's explanation regarding her deceased husband, the ITAT decided to grant her another opportunity to explain the source of the cash deposits. The matter is remitted back to the Ld. CIT(A) for fresh adjudication, with directions to provide two more opportunities to the assessee.

What were the facts?

The assessee, Ms. Priti Jayesh Vassa, deposited Rs. 90,09,569/- in her bank account during Assessment Year 2017-18 but failed to explain the source of the cash, leading the AO to make additions under Section 68 and Section 69A. The Ld. CIT(A) dismissed her appeal for non-prosecution as she did not respond to opportunities given. The assessee pleaded that her deceased husband handled the business and deposits, and she was unaware of the source.

What were the issues?

Whether the Ld. CIT(A) erred in confirming additions for unexplained cash deposits without providing proper opportunity, and whether the Ld. CIT(A) has the power to dismiss an appeal for non-prosecution without adjudicating on merits.

Which sections of the Income-tax Act were involved?

Section 68,Section 69A,Section 144

AI-generated summary — verify with the full judgment below

Cases cited in this judgment(1)Show list

Detected automatically from the text. Citations are also linked where they appear in the judgment. The count shows how many other judgments on BharatTax rely on the same authority.

Income Tax Appellate Tribunal, MUMBAI BENCH “C” MUMBAI

Before: SHRI NARENDER KUMAR CHOUDHRY & SHRI OMKARESHWAR CHIDARA

For Appellant: Smt. Priti Vassa (Appellant)
For Respondent: Mr. R. A. Dhyani, CIT DR (on behalf of Shri Mahesh Pamnani Sr. DR)
Hearing: 30/12/2024Pronounced: 07/01/2025

This appeal by the assessee is directed against order dated 30.09.2024 passed by the Ld. Commissioner of Income-tax (Appeals) – National Faceless Appeal Centre, Delhi [in short ‘the Ld. CIT(A)’] for assessment year 2017-18.

2.

The In the above captioned appeal, the appellant Ms. Priti Jayesh In the above captioned appeal, the appellant Ms. Priti Jayesh In the above captioned appeal, the appellant Ms. Priti Jayesh Vassa, raised the following Grounds of Appeal : Vassa, raised the following Grounds of Appeal :

“1. That on facts and circumstances in law the Ld. CIT(A) erred in confirming That on facts and circumstances in law the Ld. CIT(A) erred in confirming That on facts and circumstances in law the Ld. CIT(A) erred in confirming addition made by Ld. AO amounting to Rs. Rs.22,17,648/ addition made by Ld. AO amounting to Rs. Rs.22,17,648/- u/s 68 of Income Tax Act, u/s 68 of Income Tax Act, 1961 without appreciating the facts and merits of the case. 1961 without appreciating the facts and merits of the case.

2. That on facts and circumstances in That on facts and circumstances in law the Ld. CIT(A) erred in confirming law the Ld. CIT(A) erred in confirming addition made by Ld. AO amounting to Rs. 67,91,921/ addition made by Ld. AO amounting to Rs. 67,91,921/- of cash deposited in the bank of cash deposited in the bank account of assessee during the concerned assessment year u/s 68 of Income Tax Act, during the concerned assessment year u/s 68 of Income Tax Act, 1961 without appreciating the facts and merits of 1961 without appreciating the facts and merits of the case 3. That's on facts and in the circumstances of law the Ld. CIT(A) erred in not giving That's on facts and in the circumstances of law the Ld. CIT(A) erred in not giving That's on facts and in the circumstances of law the Ld. CIT(A) erred in not giving a reasonable and sufficient opportunity of being heard before confirming the order of a reasonable and sufficient opportunity of being heard before confirming the order of a reasonable and sufficient opportunity of being heard before confirming the order of Ld. AO of making addition of Rs.90,09,569/ Ld. AO of making addition of Rs.90,09,569/-.

4.

The appellant craves to ad The appellant craves to add, amend, alter, substitute, and modify any or all the d, amend, alter, substitute, and modify any or all the above grounds of appeal

, if necessary, on the basis of submissions to be made at the above grounds of appeal, if necessary, on the basis of submissions to be made at the above grounds of appeal, if necessary, on the basis of submissions to be made at the time of personal hearing. time of personal hearing.”

3. From this assessment order, it is observed that the appellant had From this assessment order, it is observed that the appellant had From this assessment order, it is observed that the appellant had deposited an amount of deposited an amount of Rs. 90,09,569/- in her bank account and she in her bank account and she has not explained the source of the cash. Hence, the Ld. AO invoked Sec. has not explained the source of the cash. Hence, the Ld. AO invoked Sec. has not explained the source of the cash. Hence, the Ld. AO invoked Sec. 68 and Sec 69A which deals with cash credit and unexplained money 68 and Sec 69A which deals with cash credit and unexplained money 68 and Sec 69A which deals with cash credit and unexplained money respectively and made the additions while completing the assessment. respectively and made the additions while completing the assessment. respectively and made the additions while completing the assessment. The appellant vide letter dated 09/10/2019 has stated as follows : appellant vide letter dated 09/10/2019 has stated as follows : appellant vide letter dated 09/10/2019 has stated as follows :

“my husband fought with me forcing me to become the proprietor of his company as I my husband fought with me forcing me to become the proprietor of his company as I my husband fought with me forcing me to become the proprietor of his company as I was working and he could get loan only in my name. He took loan in 2010 in name was working and he could get loan only in my name. He took loan in 2010 in name was working and he could get loan only in my name. He took loan in 2010 in name and kept my house mortgaged. I and kept my house mortgaged. I was against it but he didn't agree. He used to force was against it but he didn't agree. He used to force me to sign cheques. He took loan as he wanted to start a new business but he failed in me to sign cheques. He took loan as he wanted to start a new business but he failed in me to sign cheques. He took loan as he wanted to start a new business but he failed in that too. I am not aware of his business. He was driving ola later. He used to do that too. I am not aware of his business. He was driving ola later. He used to do that too. I am not aware of his business. He was driving ola later. He used to do transactions with the bank. In th transactions with the bank. In the year 2016, the bank people were after him to repay e year 2016, the bank people were after him to repay the loan. They had told him if he did not pay the amount, they would freeze my house the loan. They had told him if he did not pay the amount, they would freeze my house the loan. They had told him if he did not pay the amount, they would freeze my house and the Recovery Officer would come to my house to take possession of house. He was and the Recovery Officer would come to my house to take possession of house. He was and the Recovery Officer would come to my house to take possession of house. He was a high blood pressure patient. He a high blood pressure patient. He somehow managed cash and repaid loan of app. 70 somehow managed cash and repaid loan of app. 70 lakhs. I am no aware from where he has got money to repay loan. lakhs. I am no aware from where he has got money to repay loan. lakhs. I am no aware from where he has got money to repay loan.”

3.1 As mentioned above, the appellant couldn’t explain the source of As mentioned above, the appellant couldn’t explain the source of As mentioned above, the appellant couldn’t explain the source of cash deposited in her bank account and the cash deposited in her bank account and the same was added by was added by the Ld. AO, while completing the assessment u/s. 144. completing the assessment u/s. 144.

4. The appellant filed an appeal The appellant filed an appeal with the Ld. CIT(A) and the Ld. . CIT(A) and the Ld. CIT(A) passed an order on 30/08/2024. The Ld. CIT(A) adjudicated that 6 passed an order on 30/08/2024. The Ld. CIT(A) adjudicated that 6 passed an order on 30/08/2024. The Ld. CIT(A) adjudicated that 6 opportunities were given to the appellant on various dates which we opportunities were given to the appellant on various dates which we opportunities were given to the appellant on various dates which were all served on her through e served on her through e-mail. But, there was no response from the mail. But, there was no response from the appellant on the Grounds of Appeal taken by her before the Ld.CIT(A) . In the Grounds of Appeal taken by her before the Ld.CIT(A) . In the Grounds of Appeal taken by her before the Ld.CIT(A) . In view of the same, the Ld. CIT(A) view of the same, the Ld. CIT(A) dismissed the appeal of the appellant by dismissed the appeal of the appellant by saying that she is not interested i saying that she is not interested in prosecuting the appeal. n prosecuting the appeal.

5.

Aggrieved by the order of the Ld. CIT(A), by the order of the Ld. CIT(A), further further appeal was filed by appellant before ITAT with the ITAT with the Grounds of Appeal mentioned in page mentioned in page no. 2 of this order.

6.

During the hearing proceedings During the hearing proceedings before ITAT, The The appellant herself represented her case and submitted that the represented her case and submitted that the business was looked after business was looked after by her husband and he passed away in by her husband and he passed away in 2018. She h has pleaded that she doesn’t know anything about the business which was run by her doesn’t know anything about the business which was run by her doesn’t know anything about the business which was run by her husband in her name. husband in her name. Per contra, the Ld. DR supported orted the order of Ld. AO and Ld. CIT(A) and AO and Ld. CIT(A) and argued that the order of Ld. AO should be that the order of Ld. AO should be confirmed because the appellant confirmed because the appellant has not furnished the sources of bank the sources of bank deposits even though several opportunities were given to her. deposits even though several opportunities were given to her. deposits even though several opportunities were given to her.

7.

Heard both sides Heard both sides. The Hon’ble Bombay H.C. in the case of H.C. in the case of Premkumar Arjunadas Luthra Premkumar Arjunadas Luthra (HUF)69 taxman.com 407(Bom) has held that the Ld. CIT(A) doesn’t have power to dismiss the appeal for non that the Ld. CIT(A) doesn’t have power to dismiss the appeal for non that the Ld. CIT(A) doesn’t have power to dismiss the appeal for non- prosecution of the same and prosecution of the same and all the issues mentioned in the assessment mentioned in the assessment order should be adjudicated on be adjudicated on merits. As it was submitted that her it was submitted that her husband passed away husband passed away, who was looking after the business and who has business and who has deposited cash in her account, it is decided to give one more opportunity deposited cash in her account, it is decided to give one more opportunity deposited cash in her account, it is decided to give one more opportunity to the appellant in the interest of justice, to explain the sources of cash to the appellant in the interest of justice, to explain the sources of cash to the appellant in the interest of justice, to explain the sources of cash deposits in bank account in her name. The appellant is directed to co eposits in bank account in her name. The appellant is directed to co eposits in bank account in her name. The appellant is directed to co- operate with the Department and furnish the sources of cash deposits. operate with the Department and furnish the sources of cash deposits. operate with the Department and furnish the sources of cash deposits. The matter is remitted to the file of Ld. CIT(A) for fresh adjudication and The matter is remitted to the file of Ld. CIT(A) for fresh adjudication and The matter is remitted to the file of Ld. CIT(A) for fresh adjudication and he is directed to give 2 to give 2 more opportunities and complete the assessment opportunities and complete the assessment, as the matter was not decided on merits. as the matter was not decided on merits.

8.

In view of the above, the In view of the above, the appeal of appellant is allowed for statistical is allowed for statistical purposes.

Order pronounced in the open Court on Order pronounced in the open Court on 07/01 /01/2025.

More judgments on Section 68

All 29,931 judgments and leading authorities on Section 68 →

Recent GST High Court judgments

Search GST case law →