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Facts
The assessee, an agriculturist involved in selling food grains and fish, was subject to proceedings under section 153A of the IT Act based on information of cash interception during a police search. The assessee filed a return declaring gross receipts, and claimed not to be liable to maintain books of account due to turnover below Rs.1 crore. However, the Assessing Officer added the total income under section 69A of the Act.
Held
The Tribunal noted that the CIT(A) had provided multiple opportunities to the assessee to substantiate their claim with evidence, which the assessee failed to do. However, the CIT(A) had dismissed the appeals without considering the merits. The Tribunal, in the interest of natural justice, decided to set aside the CIT(A)'s order and remit the matter back to the CIT(A) with a direction to provide one more opportunity of hearing to the assessee.
Key Issues
Whether the CIT(A) correctly dismissed the appeals without considering the merits, and whether the assessee was given adequate opportunity to present their case.
Sections Cited
153A, 144, 69A
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, PATNA BENCH, PATNA
Before: S/SHRI DUVVURU RL REDDY(KZ) & RAJESH KUMAR
IN THE INCOME TAX APPELLATE TRIBUNAL, PATNA BENCH, PATNA BEFORE S/SHRI DUVVURU RL REDDY, VICE PRESIDENT(KZ) AND RAJESH KUMAR, ACCOUNTANT MEMBER to 109/Pat/2025 Assessment Years : 2015-16 to 2020-2021 Niraj Kumar, C/O. Ranvijay Vs. ACIT, Central Circle-1, Patna Sgharma, Damauya, Ghose, Jehanabad-804406 PAN/GIR No.HOXPK 5233 R (Appellant) .. ( Respondent) Assessee by : Shri K.M. Mishra, Adv Revenue by : Shri Rajat Datta, ld CIT DR Date of Hearing : 28/08/2025 Date of Pronouncement : 30/09/2025 O R D E R PER: DUVVURU RL REDDY, VICE PRESIDENT(KZ)
The present appeals are directed at the instance of assessee against the separate orders of ld. Commissioner of Income Tax (Appeals),Patna-3 dated 31.12.2024 in Appeal No. CIT(A), Patna-3/11192/2014-15, CIT(A), Patna-3/10480/2015-16, CIT(A), Patna-3/10767/2016-17, CIT(A), Patna- 3/10573/2017-18, CIT(A), Patna-3/10600/2018-19 and CIT(A), Patna- 3/10428/2019-20 passed u/s.153A r.w. s 144 of the Act for Assessment Years
P a g e 1 | 4 to 109/Pat/2025 Assessment Years : 2015-1 6 to 2020-2021 2015-16 to 2020-2021, respectively. Since the facts involved in all these appeals are common, therefore, they are disposed off by this common order for the sake of convenience. Accordingly, we take up for consideration for the assessment year 2015-16.
Facts in brief are that the assessee is an agriculturist and earned income out of sale of food grains which he cultivated in his land. He is also in the farming of fish. On the basis of information received from Superintendent of Police, Jehanabad, proceedings under section 153A of the I.T.Act were initiated about interception of cash of Rs.11,95,031/- during the search operation by police from the house of Shri Niraj Sharma. The Pr. DIT (Inv) issued warrant under section 132A on 11.11.2020, in response to which, the assessee filed return on 27.1.2022 declaring total gross receipt of Rs.3,52,547/-. Before the AO, it was stated that as the total turnover is less than Rs.1 crore, the assessee was not liable to maintain books of account. The above contention was not acceptable to the AO, and, therefore, total income of the assessee was added u/s.69A of the Act. Being aggrieved, the assessee carried the matter in appeals before the ld CIT(A) in all these assessment years, who dismissed the appeals, as the assessee could not substantiate his case by furnishing necessary documents and submissions. Hence, the assessee is in appeals before us.
P a g e 2 | 4 to 109/Pat/2025 Assessment Years : 2015-1 6 to 2020-2021
At the time of hearing, ld. Counsel for the assessee stated that the ld CIT(A) has dismissed the appeals without giving adequate opportunity of hearing to the assessee. He prayed before the Bench that the impugned orders be set aside and remitted back to the file of ld. CIT(Appeals) for deciding it afresh.
On the other hand, ld Sr DR supported the orders of the lower authorities.
We have heard the rival contentions and perused the material available on record. A perusal of the impugned order clearly shows that the ld CIT(A) has given four opportunities to the assessee to substantiate the claim with documentary evidences and submissions, however, the assessee failed to respond the same. A perusal of the orders of ld CIT(A) also show that he has simply dismissed the appeals without considering the merits of the case. Before us, ld AR undertakes that the assessee will cooperate the proceedings, if the matter is restored back to the file of the ld CIT(A). Considering the facts and circumstances of the case, we are inclined to set aside the order passed by the ld. CIT(Appeals) and in order to meet the principle of natural justice, remit the matter back to the file of the ld CIT(A) with a direction to provide one more opportunity of being heard to the assessee. At the same breath, we also hereby caution the assessee to promptly co-operate with the proceedings before the CIT(A) failing which the ld CIT(A) shall be at liberty
P a g e 3 | 4 to 109/Pat/2025 Assessment Years : 2015-1 6 to 2020-2021 to pass appropriate order in accordance with law and merits based on the materials available on the record. Thus, the grounds raised by the assessee are allowed for statistical purposes.
In the result, appeals of the assessee stand partly allowed for statistical purposes.
Order dictated and pronounced in the open court on 30/09/2025.