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Facts
The assessee, a farmer/agriculturist, did not file a return of income. The AO made an addition of Rs. 53,87,651/- as unexplained money under Section 69A based on cash deposits during demonetisation and taxed it under Section 115BBE. The CIT(A) dismissed the assessee's appeal.
Held
The Tribunal noted that the CIT(A) passed an ex-parte order without going into the merits. Given the assessee's status and the AO's order under Section 144, the matter was remanded to the AO for proper adjudication after allowing the assessee an opportunity of hearing.
Key Issues
Whether the CIT(A) erred in upholding the additions made by the AO without proper verification and whether the assessment order was valid without a notice under Section 143(2) when no return was filed.
Sections Cited
143(2), 142(1), 129, 131, 69A, 115BBE, 144
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, AHMEDABAD “A” BENCH, AHMEDABAD
Before: DR. BRR KUMAR & Ms. SUCHITRA KAMBLE
PER SUCHITRA KAMBLE, JUDICIAL MEMBER:
This appeal is filed by the Assessee against order dated 16.10.2023, passed by the CIT(A), National Faceless Appeal Centre (NFAC), Delhi for the Assessment Year 2017-18.
The assessee has raised the following grounds of appeal:
“1. On the facts and in the circumstance of the case and in law, the Hon'ble CIT (Appeals) has erred in upholding the order passed by the Learned A.O. even though the order passed by L'd A.O. is erroneous in law as no notice for assessment was issued under section 143(2) as is mandatorily required to issued for assessment proceedings to be valid. 2 On the facts and in the circumstance of the case and in law, the Hon'ble CIT (Appeals) has erred in confirming the additions of Rs.53,87,650/- made under 69A by Learned A.O. as unexplained money on basis of credit entries only in the bank accounts. 3 The Hon'ble CIT (Appeals) has erred in law and in fact in confirming the order passed under section 144 of the Income Tax Act, 1961 by the Assessment Year: 2017-18 Daxeshkumar Chimanbhai Patel vs. ITO Page 2 of 4 Learned A.O. as the assessment order was passed without service of proper notices. The proceedings were carried out without properly communicating the notices to the appellant as required as per the Income Tax Law and hence the order passed without communication of notice was illegal, invalid and bad in law and the same be held so. 4 The Hon'ble CIT (Appeals) has erred in law and in fact in confirming the order passed by the Learned A.O. on the ground of verification of records and merits of the case though the order has been passed without consideration of verification of records and merits of the case. 5 The appellant craves leave to add, amend, alter, delete, change or modify any or all grounds of appeal before or at the time of the hearing.”
3. The assessee is a Farmer/Agriculturist and has not filed return of income. As per the information available, the Assessing Officer noticed that during the period of demonetisation from 09.11.2016 to 30.12.2016, the assessee made cash deposits. Subsequent to the same, statutory notices under Section 142(1) r.w.s.129 of the Income Tax Act, 1961 was issued on 28.05.2019 and 06.08.2019. The summons under Section 131 of the Act dated 23.08.2019 was also issued thereby calling upon the Banks (Bank of Baroda & Dena Bank) for the information related to the cash deposits during the demonetisation period. The assessee has not submitted any details before the Assessing Officer and, therefore, the Assessing Officer observed that since the source of cash deposits of Rs.11,87,500/- and other amount of Rs.42,00,151/- credited in assessee’s Bank account was not proved by the assessee and hence made total addition of Rs.53,87,651/- as unexplained money under Section 69A of the Act and the total income assessed was taxed under Section 115BBE of the Act @ 60%.
Being aggrieved by the Assessment Order, the assessee filed appeal before the CIT(A). The CIT(A) dismissed the appeal of the assessee.
At the time of hearing, the Chartered Accountant of the assessee filed adjournment letter dated 06.03.2025, the same is rejected and none appeared before the Tribunal. After going through the records, we are taking the cognisance of the grounds taken by the assessee before the CIT(A) as well as the submissions/statement of facts attached to Form no.35.
Assessment Year: 2017-18 Daxeshkumar Chimanbhai Patel vs. ITO Page 3 of 4 6. The Ld. DR submitted that the assessee has taken ground no.1 related to issuance of notice under Section 143(2) of the Act but the same is not required in assesses case as the assessee has a not filed return of income. Hence, issuing of notice under Section 143(2) of the Act does not arise. Thus, ground no.1 of assessee’s appeal is dismissed.
Ther Paper Book filed by the assessee before us is not properly certified and, therefore, not taken into consideration.
After hearing the Ld. DR and going through the order of the CIT(A), it appears that the CIT(A) has passed ex-parte order without going into the merits of the case. Since the assessee is an Agriculturist who is illiterate and the Assessment Order as well is passed under Section 144, it will be appropriate to remand back this matter to the file of the Assessing Officer for proper adjudication of the evidences/documents which the assessee is directed to be filed before the Assessing Officer and the Assessing Officer is directed to adjudicate the issue on merit as per the Income Tax Act. The assessee be given opportunity of hearing by following the principles of natural justice. Thus, the appeal of the assessee is partly allowed for statistical purpose.
In the result, appeal filed by the assessee is partly allowed for statistical purpose.
Order pronounced in the open Court on this 19th March, 2025.