HEMRAJ PRABHUDAS CHANDEL,AHMEDABAD vs. THE ITO, WARD-3(3)(5) PREVIOUSLY ITO, WARD-3(3)(7), AHMEDABAD

“1. The order passed u/s.250 on 28.02.2024 by ADDL/JCIT(A)-1 Coimbatore confirming addition of Rs.11,73,620/- u/s.69C is wholly illegal, unlawful and against the principles of natural justice.

2. The Ld. ADDL/JCIT (A)-1 Coimbatore has grievously erred in law and or on facts by not considering the submissions made with evidences during assessment proceedings in right perception.

3. On the facts and circumstances of the case the Ld. ADDL/JCIT (A)-1, Coimbatore erred in not considering the Grounds of Appeal

, statement of facts along with Additional evidences while making addition of amount u/s.69C of Rs.11,73,620/-.

4. Both the Id. AO and ld. ADDL/JCIT (A)-1 Coimbatore did not verify the details furnished in proper perspective and service of notice as most of the notice not served properly to appellant thus violated the principles of natural justice.

5. Ld. AO erred in law or on facts by mentioning service of notices through speed post in Table 1 of assessment order which creates contradiction with table 1 of draft assessment order (SCN).

6. Ld. ADDL/JCIT (A)-1 Coimbatore erred in law or on facts by not appreciating the service of the notices during the appeal proceedings and erred in to consider detailed submissions made before AO while making additions u/s.69C.

7. The appellant craves liberty to add, amend, alter or modify all or any grounds of appeal before final appeal.”

6. Shri Divya Rathore, Ld. AR of the assessee submitted that no compliance could be made before the Ld. Addl. CIT(A) as the assessee was consistently travelling and also due to default on the part of the counsel. He contended that the ground taken in the appeal in respect of cash payment towards credit card expenses was not adjudicated on merits by the Ld. Addl. CIT(A). She explained that cash payments were made out of the cash withdrawals made by the assessee from the bank (Assessment Year: 2017-18) Hemraj Prabhudas Chandel vs ITO Page 4 of 5 account. Further that the assessee being engaged in travel business, some of the expenses made through credit card were on behalf of the clients. She, therefore, requested that the assessee may be allowed another opportunity to explain the cash payment towards credit card expenses by setting aside the matter to the file of the Assessing Officer.

7. Per contra, Smt. Ananya Kulshresth, Ld. Sr. DR, supported the orders of the lower authorities. She submitted that no compliance was made by the assessee before the Assessing Officer as well as before the Ld. Addl. CIT(A). She further submitted that no evidence was ever brought on record to explain the source of cash payments towards credit card expenses or to establish that certain expenses pertaining to the clients were incurred by the assessee. She, therefore, supported the order of the Ld. Addl. CIT(A).

8. We have considered the rival submissions. It is found that the Assessing Officer had allowed as many as eight opportunities to the assessee but no compliance was made and the source of cash payments against credit card expenses were not explained. Before the Ld. Addl. CIT(A) also, no compliance was made by the assessee. The explanation of the assessee that he was consistently travelling and, therefore, could not comply to the notices, is not found convincing. Once the assessee had filed the appeal, it was his responsibility to track the progress of the appeal and comply to the notices of the Ld. Addl. CIT(A). The assessee can’t escape by merely placing all the blame on the counsel. We, therefore, deem it proper to impose a cost of Rs.5,000/- on the assessee which should be deposited to the Prime Minister’s National Relief Fund within a period of 15 days from the date of receipt of this order.

(Assessment Year: 2017-18) Hemraj Prabhudas Chandel vs ITO Page 5 of 5 Subject to the payment of cost, we deem it proper to set aside the matter to the file of the Jurisdictional Assessing Officer with a direction to allow another opportunity to explain the source of cash payments against credit card expenses. The assessee has filed a copy of the credit card expenses before us in the paper-book. The assessee will be free to file the additional evidences as brought on record before us or any other evidence as deemed fit, before the Assessing Officer, in support of the explanation for the cash payment towards credit card expenses. The assessee will also comply to the directions of the Assessing Officer and produce the details and documents as required by him. In case the assessee does not comply in the course of set aside proceeding, the Assessing Officer will be at liberty to decide the matter on the basis of materials available on record.