SHREE GAJANAN GAS AGENCY,BEED vs. INCOME TAX OFFICER, BEED
Income Tax Appellate Tribunal, PUNE BENCH “SMC”, PUNE
Before: SHRI MANISH BORADAssessment Year : 2017-18
PER MANISH BORAD, AM :
This appeal filed by the assessee is directed against the order dated
26.07.2024 of the Ld. CIT(A)/NFAC, Delhi, relating to assessment year 2017-18. 2. Facts of the case, in brief, are that the assessee is a partnership firm by name
“Shree Gajanan Gas Agency” and carrying on the business of retail distribution of commercial and household gas of M/s. Confidence Petroleum India Limited having brand name “GO GAS”. The gas cylinders were supplied to the assessee firm by Anup Gas Agency which is a wholesale distributor of GO GAS. The Assessing
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Officer noted that the assessee has made cash deposits of Rs.10,42,800/- during demonetization period i.e. from 09.11.2016 to 31.12.2016 in his account maintained with the ICICI Beed Branch. Since the assessee has not responded to the notices issued by the Assessing Officer, the Assessing Officer passed the ex- parte order u/s 144 of the Income Tax Act, 1961 (hereinafter referred to as „the Act‟) and made addition of Rs.10,42,800/- u/s 69A of the Act.
Before the Ld. CIT(A) / NFAC the assessee furnished the details. However, the Ld. CIT(A) / NFAC dismissed the appeal solely on the ground of not complying to the provisions of section 249(4)(b) of the Act which provides for payment of advance tax on the total income if no return of income has been filed.
Aggrieved with such order of Ld. CIT(A) / NFAC, the assessee is in appeal before the Tribunal.
The Ld. Counsel for the assessee contended before me that the assessee has sufficient cash balance to explain the alleged cash deposited and it maintains its books of account regularly and the assessee firm was authorized to receive cash in old denomination during the demonetization period. He further contended that all these facts were narrated by the assessee and are duly supported by evidences and extract of books of account.
The Ld. DR on the other hand relied on the orders of the lower authorities.
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7. I have heard the rival arguments made by both the sides, perused the orders of the Assessing Officer and Ld. CIT(A) / NFAC. The issue under consideration is regarding the addition made u/s 69A of the Act being the unexplained cash deposit of Rs.10,42,800/- during the demonetization period from 09.11.2016 to 31.12.2016. Before me the Ld. Counsel for the assessee has filed complete details about the source of alleged cash deposits including the Sales register, cash book and financial statements. It is also claimed that since the assessee was dealing in essential commodities namely domestic gas, it was entitled to receive the cash in old denomination during the demonetization period. A prayer has been made for restoring the issue to the file of the Assessing Officer. I also noticed that the Ld.
CIT(A) has summarily dismissed the appeal only on account of non-compliance of the provisions of section 249(v)(b) of the Act which prima facie do not have any implication in the instant case because there is no observation of the Ld. CIT(A) about the assessee having earned income in the preceding years which is liable for payment of advance tax. Therefore, after considering the submissions made by the assessee and considering the totality of the facts of the case and in the interest of justice, I deem it proper to restore the issue to the file of the juri ictional
Assessing Officer for de novo adjudication. Needless to say, the Assessing Officer shall afford a reasonable opportunity of being heard to the assessee while deciding the issue. I hold and direct accordingly. The finding of Ld. CIT(A) is set aside
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and the grounds of appeal raised by the assessee are accordingly allowed for statistical purposes.
In the result, the appeal filed by the assessee is allowed for statistical purposes.
Order pronounced in the open Court on this 06th February, 2025. (MANISH BORAD)
ACCOUNTANT MEMBER
पुणे Pune; दिन ांक Dated : 06th February, 2025
GCVSR
आदेश की प्रतितिति अग्रेतिि/Copy of the Order is forwarded to:
अपीलार्थी / The Appellant; 2. प्रत्यर्थी / The Respondent
4. The concerned Pr.CIT, Pune DR, ITAT, „SMC‟ Bench, Pune 5. गार्ड फाईल / Guard file.
आदेशानुसार/ BY ORDER,
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Senior Private Secretary
आयकर अपीलीय अधिकरण ,पुणे
/ ITAT, Pune
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S.No.
Details
Date
Initials
Designation
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Draft dictated on 04.02.2025
Sr. PS/PS
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Draft placed before author
04.02.2025
Sr. PS/PS
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Draft proposed & placed before the Second Member
JM/AM
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Draft discussed/approved by Second
Member
AM/AM
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Approved Draft comes to the Sr. PS/PS
Sr. PS/PS
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Kept for pronouncement on Sr. PS/PS
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Date of uploading of Order
Sr. PS/PS
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File sent to Bench Clerk
Sr. PS/PS
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Date on which the file goes to the Head
Clerk
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Date on which file goes to the A.R.
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Date of Dispatch of order