ANUPAMA JEWELLERY,ERNAKULAM vs. ITO, NON-CORP WARD 1(1), KOCHI
Facts
The assessee, Anupama Jewellery, a partnership firm, filed its return for AY 2017-18 declaring income of Rs. 97,310/-. The AO completed assessment under Section 143(3) at Rs. 23,97,310/-, making an addition of 50% of sales (Rs. 46,00,000/-) during the demonetisation period, deeming them abnormal. The CIT(A) confirmed the AO's addition and dismissed the appeal ex-parte, stating that trading in illegal currency is unlawful.
Held
The Tribunal found that the CIT(A) confirmed the AO's addition and dismissed the appeal ex-parte without dealing with the assessee's grounds of appeal, which violated principles of natural justice. Therefore, the Tribunal restored the appeal to the file of the CIT(A) for de novo adjudication.
Key Issues
Whether the CIT(A) erred in confirming the AO's addition of abnormal sales during demonetisation and dismissing the appeal ex-parte without considering the assessee's grounds of appeal, violating principles of natural justice.
Sections Cited
143(3)
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Income Tax Appellate Tribunal, COCHIN BENCH
Before: SHRI INTURI RAMA RAO, AM
IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH BEFORE SHRI INTURI RAMA RAO, AM ITA No. 139/Coch/2024 Assessment Year: 2017-18 Anupama Jewellery .......... Appellant Koithara, M.G.. Road, Ernakulam 682016 [PAN: AACFA2568H] vs. The Income Tax Officer .......... Respondent Non-corpoarte Ward - 1(1), Kochi Appellant by: ------- None ------- Respondent by: Smt. Leena Lal, Sr. D.R. Date of Hearing: 17.01.2025 Date of Pronouncement: 23.01.2025 O R D E R This appeal filed by the assessee is directed against the order of the National Faceless Appeal Centre, Delhi [CIT(A)] dated 06.12.2023 for Assessment Year (AY) 2017-18.
He appellant is a partnership firm engaged in the business of jewellery. The return of income for AY 2017-18 was filed on 24.11.2017 declaring income of Rs. 97,310/-. Against the said return of income, the assessment was completed by the Income Tax Officer, Ward -1(1), Kochi (hereinafter called "the AO") vide order dated 21.12.2919 passed u/s. 143(3) of the Income Tax Act, 1961 (the Act) at a total income of Rs. 23,97,310/-. While doing so, the
2 ITA No. 139/Coch/2024 Anupama Jewellery AO made addition of 50% of the sales made during the demonetisation of Rs.46,00,000/- by holding that the sale were abnormal.
Being aggrieved, an appeal was filed before the CIT(A), who wide the impugned order dismissed the appeal by holding that trading in illegal currency is unlawful.
Being aggrieved, the appellant is in appeal before us in the present appeal.
When the appeal was called nobody appeared on behalf of the assessee despite due service of notice of hearing. Therefore, we proceeded to dispose of the appeal after hearing the learned Sr. DR.
The AO made addition of 50% of the sales made during the demonetisation period by holding that the appellant firm made abnormal sales. On appeal before the CIT(A), the CIT(A) confirmed the action of the AO without dealing with the grounds of appeal raised by the assessee and dismissed the appeal exparte. Thus, the order passed by the CIT(A) suffers from violation of principles of natural justice and, therefore, the appeal filed by the appellant stands restored to the file of the CIT(A) for de novo adjudication in accordance with law.
In the result, appeal filed by the assessee is allowed for statistical purposes.
3 ITA No. 139/Coch/2024 Anupama Jewellery Order pronounced in the open court on 23rd January, 2025. Sd/- (INTURI RAMA RAO) ACCOUNTANT MEMBER Cochin, Dated: 23rd January, 2025 n.p. Copy to: 1. The Appellant 2. The Respondent 3. The Pr. CIT concerned 4. The Sr. DR, ITAT, Cochin 5. Guard File
Assistant Registrar ITAT, Cochin
