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Facts
The appeal was filed by the assessee, M/s. Mithilesh Fabrics, against an order confirming the addition of cash deposits to their total income. The assessee had initially not filed a return, and a notice under section 148 was issued. Subsequently, a return was filed, but the Assessing Officer added cash deposits of ₹.1,85,59,072/- under section 69A, which was confirmed by the CIT(A).
Held
The Tribunal noted that the assessee had filed written submissions along with an acknowledgement on 19.07.2025, which were not considered by the CIT(A) in the impugned order. The Tribunal found merit in the assessee's argument that these submissions were overlooked.
Key Issues
Whether the CIT(A) was justified in confirming the addition made by the AO under section 69A without considering the assessee's written submissions dated 19.07.2025.
Sections Cited
69A, 148, 143(2), 142(1), 147, 144B
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Before: Shri S.S. Viswanethra Ravi & Shri S.R. Raghunatha
O R D E R
PER S.S. VISWANETHRA RAVI, JUDICIAL MEMBER:
This appeal filed by the assessee is directed against the order dated 22.07.2025 passed by the ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre [NFAC], Delhi for the assessment year 2017-18.
We find that this appeal is filed with a delay of 35 days. The assessee filed an affidavit for condonation of delay stating the reasons. Upon hearing both the parties and on examination of the said affidavit, we find the reasons stated by the assessee are bonafide, which really prevented in filing the appeal in time. Thus, the delay is condoned and admits the appeal for adjudication.
The assessee raised 13 grounds of appeal amongst which only issue emanates for our consideration as to whether the ld. CIT(A) is justified in confirming the addition made by the Assessing Officer under section 69A of the Income Tax Act, 1961 [“Act” in short] ignoring the submissions made by the assessee vide its letter dated 19.07.2025 in the facts and circumstances of the case.
4. At the outset, we note that the assessee is a firm and no return of income filed. The Assessing Officer found cash deposit as well as withdrawals in current account and accordingly, notice dated 26.03.2021 under section 148 of the Act has been issued. The assessee filed return of income declaring a total income of ₹.1,21,160/- in response to notice under section 148 of the Act and the Assessing Officer, by issuing notice under sections 143(2) and 142(1) of the Act, held that no explanation in respect of the cash deposits of ₹.1,85,59,072/- furnished by the assessee and accordingly added the same to the total income of the assessee under section 69A of the Act vide his order dated 24.03.2022 passed under section 147 r.w.s. 144B of the Act. Aggrieved by the order the Assessing Officer, the assessee preferred an appeal before the ld. CIT(A) and the ld. CIT(A) confirmed the order of the Assessing Officer.
The ld. AR Shri H. Yeshwanth Kumar, Advocate submits that the ld. CIT(A) failed to consider the submissions filed by the assessee vide letter dated 19.07.2025 and prayed to remand the matter to the file of the ld. CIT(A).
The ld. DR Ms. T. Mythili, JCIT reported no objection.
After hearing both the parties, we note that the assessee filed written submissions dated 19.07.2025 vide ITBA portal, which is at page 4 to 52 of the paper book. Further, we find the acknowledgement dated 19.07.2025 placed at page 2 & 3 of the paper book. On perusal of the same, we note that the assessee filed written submissions along with Annexure, but, however, not considered by the ld. CT(A) in the impugned order. Further, on perusal of the impugned order, we note that the ld. CIT(A) considered only written submissions as filed along with grounds of appeal, but not the written submissions filed on 19.07.2025. Therefore, we find force in the arguments of the ld. AR that no consideration was given to the written submissions as filed on 19.07.2025, which is on record from pages 4 to 52 of the paper book along with acknowledgement placed at pages 2 &3 of the paper book. Thus, we deem it proper to remand the matter to the file of the ld. CIT(A) for fresh consideration and to pass order in accordance with law by taking into consideration the written submissions dated 19.07.2025. The assessee is at liberty to file evidence, if any, before the ld. CT(A) for his consideration. Thus, the grounds raised in the grounds of appeal by the assessee are allowed for statistical purposes.
In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced on 10th March, 2026 at Chennai.