NIRAJ KUMAR,JEHANABAD vs. ACIT, CENTRAL CIRCLE-1, PATNA
Facts
The assessee, an agriculturist involved in selling food grains and fish, had proceedings initiated under Section 153A of the IT Act following the interception of cash during a police search. The assessee filed a return declaring gross receipts, and argued that maintaining books of account was not required due to turnover being less than Rs. 1 crore. However, the AO added the total income under Section 69A, which was upheld by the CIT(A) as the assessee failed to substantiate their case.
Held
The Tribunal held that the CIT(A) had provided the assessee with multiple opportunities to present evidence and submissions, but the assessee failed to respond adequately. Despite this, the Tribunal, to meet the principles of natural justice, decided to set aside the CIT(A)'s order and remit the matter back for a fresh hearing, cautioning the assessee to cooperate in the future.
Key Issues
Whether the CIT(A) dismissed the appeals without providing adequate opportunity for hearing and consideration of merits, and whether the matter should be remanded for a fresh hearing.
Sections Cited
153A, 144, 69A, 132A
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 ITA Nos.104 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
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ITA Nos.104 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.
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ITA Nos.104 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
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ITA Nos.104 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.
Sd/- Sd/- (RAJESH KUMAR) (DUVVURU RL REDDY) Accountant Member VICE PRESIDENT Cuttack: Dated 30/09/2025 B.K.Parida, Sr. PS (OS) Copy of the Order forwarded to : 1. The Appellant : Niraj Kumar, C-O. Ranvijay Sgharma, Damauya, Ghose, Jehanabad-804406
The Respondent : ACIT, Central Circle-1, Patna 3. The CIT(A)-,Patna-3 4. Pr.CIT-Patna-3 5. DR, ITAT, Cuttack 6. Guard file. //True Copy//
By order
Asst.Registrar, Itat, Patna Date Initial 1. Draft dictated on 2.9.25 Sr.PS 2. Draft placed before author 2.9. 25 Sr.PS 3. Draft proposed & placed before the second member AM 4. Draft discussed/approved by Second Member. AM 5. Approved Draft comes to the Sr.PS/PS Sr.PS/PS 6. Kept for pronouncement on Sr.PS 7. File sent to the Bench Clerk Sr.PS 8. Date on which file goes to the OS 9. Date on which file goes to the SPS
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