MOHAMMAD MUSHTAQ,PANCHKULA vs. DCIT, CIRCLE, PANCHKULA

the order bearing No. ITBA/NFAC/S/250/2023- 24/1056126042(1) dated 15.09.2023 of the ld. CIT(A) which is hereinafter referred to as the “Impugned Order”. The ITA 694/CHD/2023 A.Y. 2017-18 2 relevant assessment year is 2017-18 and the corresponding previous year period is from 01.04.2016 to 31.03.2017.

2. Factual Matrix 2.1 That assessee had filed return of income for the assessment year 2017-18 on 06.11.2017 declaring an income of Rs.15,52,590/- and agriculture income of Rs.46,68,628/-.

2.2 That the case of the assessee was selected under complete scrutiny through CASS.

2.3 That notice under Section 143(2) of the Act was issued and served upon the assessee.

2.4 That a Questionnaire alongwith notice under Section 142(1) was also issued.

2.5 That the assessee filed required details, information/documents etc. which were verified.

2.6 The assessee is into the business of Trading in Green house/ Net house components and growing of cut flowers.

The assessee had derived its income from Trading and sale of cut flowers which is in the nature of Agricultural Income.

ITA 694/CHD/2023 A.Y. 2017-18 3 That the Learned Assessing officer had arbitrarily and without any basis made the addition of Rs.46,68,628/- in respect of disallowance of Agricultural Income. That the Learned Assessing officer has arbitrarily made addition of Rs. 20,15, 047/- on account of cash deposits. That the ld.

Assessing Officer has arbitrarily assessed the income under Section 115BBE of the Income Tax Act, 1961.

2.7 That by an assessment order bearing No. ITBA/AST/S/143(3)/2019-20/1021859573(1) dated 07.12.2019 the ld. AO has computed total income of the assessee at Rs.82,36,270/-. Income as per return was Rs.15,52,590/- and ld. AO has made addition of Rs.20,15,047/- on account of unexplained cash deposit and has disallowed agriculture income of Rs.46,68,628/-.

2.8 That the assessee being aggrieved by the aforesaid assessment order dated 07.12.2019 had preferred first appeal in terms of Section 246A of the Act before ld. CIT(A) who by the impugned order has dismissed the appeal.

ITA 694/CHD/2023 A.Y. 2017-18 4 2.9 That being aggrieved by the “Impugned Order” the assessee has preferred second appeal before this Tribunal on following grounds :-

4. That the Authorities below had acted unreasonable in contravention of the provisions of the Income Tax Act 1961 while making the additions of Rs.20,15,047.00 for cash deposited during the demonetization period. The cash of Rs.20,15,047.00 has been deposited from the cash withdrawals from the bank account of the assessee and out of cash in hand as on 08.11.2016 as well as from his past savings. 5. That the Authorities below had acted unreasonable in contravention of the provisions of the Income Tax Act 1961 while assessing the total income of the assessee and taxing the same under Section 115 BBE of the Income Tax Act, 1961 as the cash has been deposited from the cash withdrawals from the bank account and out of cash in hand as on 08.11.2016 as well as from his past savings. 6. The Authorities below have erred in charging interest under Section 234B & 234C from the appellant as the same was not legally demandable. 3. Record of Hearing 3.1 That the hearing in the matter took place before us on 08.01.2025. Registry placed before us an application for adjournment moved by appellant. However, in support of ITA 694/CHD/2023 A.Y. 2017-18 5 the said application for adjournment, no Authorized Representative or assessee in person appeared for hearing.

The ld. DR was, however, present and invited our attention that the impugned order is ex-parte and that assessee has not appeared before ld. CIT(A) despite opportunities. She has left the issue to be decided by this Tribunal according to the law.

ITA 694/CHD/2023 A.Y. 2017-18 6 4.2 Keeping in view larger interest of justice, we are however, of the considered view that a direction should be issued to assessee to participate in the hearing and to give necessary details and such assistance to CIT(A) as desired.

4.3 Under these circumstances, we set aside the impugned order and remand the case back to the file of CIT(A) to pass a fresh order in the matter on denovo basis with direction to assessee to cooperate with the Department. The ld. CIT(A) is directed to give only one opportunity to the assessee and assessee is directed not to seek any adjournment on flimsy grounds.

5.2 In result appeal of assessee is allowed for statistical purposes.

Order pronounced on 22.01.2025.