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Facts
Information was available that the assessee deposited a large sum in cash and made stock transactions. The assessee did not file a return of income for AY 2011-12. During assessment, notice u/s 142(1) was issued, but the assessee failed to furnish documentary evidence for cash deposits. The assessee claimed to be in the business of agro-based products and filed a return on that basis.
Held
The Tribunal noted that the appeal was dismissed by the CIT(A) on technical grounds, specifically regarding the filling of Form 35, and that no proper notice was served at the assessee's residential address. The Tribunal found that the matter was not properly adjudicated.
Key Issues
Whether the CIT(A) erred in dismissing the appeal on technical grounds without appreciating the facts and grounds of appeal, and whether proper notices were served to the assessee.
Sections Cited
143(3), 147, 250, 142(1), 148, 44AD
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, SURAT BENCH, SURAT
Before: SHRI DIESH MOHAN SINHA & SHRI BIJAYANANDA PRUSETH
Appellant by : Shri P.M. Jagasheth, CA Respondent by : Shri Ajay Uke, Ld. Sr. DR : 30/07/2025 Date of Hearing Date of Pronouncement : 29/10/2025 आदेश / O R D E R PER DINESH MOHAN SINHA, JM:
Captioned appeal filed by the assessee, pertaining to Assessment Year (AY) 2011-12, is directed against the order passed by the National Faceless Appeal Centre (NFAC) dated 31.05.2024, which in turn arises out of an assessment order dated 12.12.2018 passed by Income Tax Department / Assessing Officer under section (u/s.) 143(3) r.w.s 147 of the Income Tax Act, 1961.
ITA 794/ SRT/ 2024 Kamlesh Babubhai Patel
Grounds of appeal raised by the Assessee are as follows:
Ground No. Ground Tax Effect
The Ld. CIT(A)-NFAC erred on facts and in Rs. 33,82,160/- law in dismissing the appeal without appreciating the and statement of facts grounds of appeal
submitted in Appeal and also without making any independent judgement or opinion relating to the subject matter of the original assessment order.
2. The order u/s. 250 is erroneous in respect of the facts of the case. The entire facts of the case as narrated in the order u/s. 250 is not relevant to the present case. It appears to be related to some other case. The amount of cash deposit in bank to the tune of Rs.99,03,000/-, the income of Rs.15,68,682/- from scrap sale in the order, as narrated in the order do not belong to the present appellant. Further the order states that no return of income has been filed in response to notice u/s. 148 of the I. Tax act. However the return of income for the relevant assessment year had been filed and the same has been stated in the Appeal Form No. 35 filed on 26.01.2019.
~ 2 ~ ITA 794/ SRT/ 2024 Kamlesh Babubhai Patel 3. It appears that the matter of some other appellant has been incorporated in this order. 4. Further no notices were sent on the residential address of the appellant as submitted in the appeal. We request the ITAT to remand the appeal 5. back to the CIT Appeal for proper adjudication. Total Rs. 33,82,160
Facts of the case: There was information available in NMS/CIB/AIR that the assessee has deposited Rs. 33,99,500/- in cash in his saving bank account held Bank of Baroda and also made contract of Rs. 42,52,119/- for sale or purchase of stock during the year. On verification of the ITD data it was revealed that assessee has not filed return of income for AY 2011-12. During the course of assessment proceedings, on verification of the information available on record it was noticed that the assessee has deposited cash in his saving bank account with Bank of Baroda. Notice u/s 142(1) dated 08.10.2018 along with questionnaire was issued to the assessee, the assessee was requested to furnish details of cash deposit and its source alongwith supporting documents. The assessee has furnished any documentary evidences in this regard. That a show cause notice was issued to the assessee in response to notice the assessee submitted the reply stating that assessee is in business of agro base products. Sale for the year was Rs.10,12,470/- return filed on the basis of 44AD @8% of the Act. Computation of income, balance sheet, profit and loss account and bank statement filed. The taxable income of the assessee is determined as under:
~ 3 ~ ITA 794/ SRT/ 2024 Kamlesh Babubhai Patel Total Income as per ROI filed Rs. 1,49,532/- Add: As discussed in para 4 above Rs. 42,36,013/- Total income assessed Rs. 43,85,545/-