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Facts
The assessee filed an appeal against the appellate order of the CIT(A) relating to the Assessment Year 2017-18. The assessee had failed to provide necessary details and explanations regarding cash deposits to the Assessing Officer and CIT(A) despite multiple opportunities.
Held
The Tribunal set aside the order of the CIT(A) and restored the matter to the Assessing Officer for de novo adjudication. The assessee was directed to submit all relevant documents and comply with notices without seeking adjournments.
Key Issues
Whether the assessee's failure to provide explanations for cash deposits warrants setting aside the CIT(A) order and restoration for de novo adjudication, while allowing the appeal for statistical purposes.
Sections Cited
69A, 115BBE, 271AAC(1), 272A(1)(d), 271F
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Income Tax Appellate Tribunal, “SMC” BENCH, AHMEDABAD
PER DR. B.R.R. KUMAR, VICE-PRESIDENT:- Delay Condoned This appeal is filed by the Assessee against the appellate order dated 21.11.2023 passed by the Commissioner of Income Tax (Appeals)National Faceless Appeal Centre, Delhi, relating to the Assessment Year 2017-18.
The assessee has raised the following grounds of appeal:
1. On the facts & circumstances of the case and in law, impugned assessment order so passed by the A.O. Is bad in law, illegal and having been passed in violation of principle of natural justice as well as against the set procedure in law, the same is liable to be quashed.
1. Asst. Year : 2017-18 - 2– 2. On facts and in the circumstances of the case as well as in law the A.O. has grossly erred in making addition of Rs.6,76,000/- u/s 69A of the Act on account of cash deposits, when no such addition is warranted. The same may be deleted.
On facts and in the circumstances of the case as well as in law the A.O. has grossly erred in making addition of Rs.25,27,688/- u/s 69A of the Act on account of other credits/deposits, when no such addition is warranted. The same may be deleted.
4. On facts and in the circumstances of the case as well as in law the A.O. has grossly erred in charging tax @60% u/s 115BBE of the Act on alleged deemed income, when there is no such justification in charging such tax. The same may be deleted.
On facts and in the circumstances of the case as well as in law the A.O. has grossly erred in initiating penalty proceedings u/s 271AAC(1) of the Act, when the appellant has not committed any such default. The same may be deleted.
On facts and in the circumstances of the case as well as in law the A.O. has grossly erred in initiating penalty proceedings u/s 272A(1)(d) of the Act, when the appellant has not committed any such default. The same may be deleted.
On facts and in the circumstances of the case as well as in law the A.O. has grossly erred in initiating penalty proceedings u/s 271F of the Act, when the appellant has not committed any such default. The same may be deleted.
3. On perusal of the records, it is observed that the assessee was afforded five opportunities of hearing to furnish details, clarifications, and explanations to substantiate the source of cash deposits. However, despite being granted multiple opportunities, the assessee failed to furnish the requisite details or explanations before the Ld. CIT(A). Consequently, the Ld. CIT(A), based on the material available on record, upheld the action of the Assessing Officer and dismissed the appeal of the assessee. We also find that the assessee remained non-compliant before the Assessing Officer and failed or furnish any documentary Asst. Year : 2017-18 - 3– evidence in support of cash deposits treated as unexplained money. Before us, the Ld. Counsel for the assessee prayed that, given an opportunity, all necessary details, clarifications, and explanations would be furnished to the Revenue authorities. Hence, in the interest of justice, we set aside the order of the Ld. CIT(A) and restore the matter to the file of the Assessing Officer for de novo adjudication. The assessee shall submit all the relevant bank statement/submission/document before the Assessing Officer and comply with the notices issued by the revenue authorities without seeking any unnecessary adjournments.
In the result, the appeal of the assessee is allowed for statistical purposes.
The order is pronounced in the open Court on 13.11.2025. S /- Sd/- Sd/- (TR SENTHIL KUMAR) (DR. B.R.R. KUMAR) JUDICIAL MEMBER VICE-PRESIDENT (True Copy) Ahmedabad; Dated 13.11.2025 MV आदेश की �ितिलिप अ�ेिषत/Copy of the Order forwarded to : 1. अपीलाथ� / The Appellant 2. ��थ� / The Respondent. 3. संबंिधत आयकर आयु� / Concerned CIT 4. आयकर आयु�(अपील) / The CIT(A)- 5. िवभागीय �ितिनिध, आयकर अपीलीय अिधकरण, अहमदाबाद / DR, ITAT, Ahmedabad 6. गाड� फाईल / Guard file. आदेशानुसार/ BY ORDER, True Copy