ANIL KUMAR,GAYA vs. ASSISTANT COMMISSIONER OF INCOME-TAX, GAYA
What did the Tribunal hold?
The Tribunal considered the rival submissions and noted that the assessee was not represented before the Assessing Officer, leading to an ex parte order. While acknowledging no fault on the Assessing Officer's part, the Tribunal observed that the assessee had produced evidence before the CIT(A) and the Tribunal. In the interest of natural justice, the Tribunal decided to restore the issues to the file of the Assessing Officer for re-adjudication, granting the assessee an adequate opportunity to be heard. A cost of Rs. 10,000/- was levied on the assessee for not being represented and producing evidence before the Assessing Officer, to be paid to the Gaya Bar Association within sixty days. Failure to pay the cost would result in the confirmation of the CIT(A)'s order. The appeal was allowed for statistical purposes with these directions.
What were the facts?
The assessee, Anil Kumar, filed an appeal against the order of the Commissioner of Income Tax (Appeals), NFAC, Delhi, for Assessment Year 2017-18. The assessee's counsel submitted that the assessee was under the control of another representative and thus unable to present all evidence during the assessment proceedings. It was argued that substantial evidence was produced before the CIT(A) and that Rule 46A of the Income Tax Rules, 1962, was violated by not considering this evidence. The additions in dispute pertained to an estimation of income and unexplained cash credits in the assessee's bank account. The revenue's counsel supported the lower authorities' orders, stating that the assessee failed to produce evidence before the Assessing Officer and that the violation of Rule 46A was not challenged.
What were the issues?
1. Whether the CIT(A) erred in not considering the evidence produced by the assessee, thereby violating Rule 46A of the Income Tax Rules, 1962, concerning the estimation of income and unexplained cash credits? Assessee's Contentions: - The assessee was unable to represent properly before the Assessing Officer due to being under the control of another representative. - Substantial evidence was produced before the CIT(A). - The CIT(A) violated Rule 46A by not considering the evidence. - Estimation of income is not permissible as the assessee maintains books of account. - Cash credits were recorded in the books of account and no addition was warranted. Revenue's Contentions: - The assessee did not produce evidence before the Assessing Officer. - There was a violation of Rule 46A regarding evidence produced before the CIT(A). - The assessee did not challenge the violation of Rule 46A before the CIT(A) or file an application for admission of additional evidence before the ITAT under Rule 29 of the ITAT Rules and Rule 46A of the Income Tax Rules. - The order of the CIT(A) should be upheld.
Which sections of the Income-tax Act were involved?
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, PATNA BENCH
Before: SHRI GEORGE MATHAN & SHRI SANJAY AWASTHI
Present for: Appellant by : Shri Jitendra Kr. Singh, Advocate Respondent by : Shri Ashwani Kr. Singal, JCIT Date of Hearing : 27.02.2025 Date of Pronouncement : 27.02.2025 O R D E R Per Bench : This is an appeal filed by the assessee against the order of the Ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [hereinafter referred to as “the Ld. CIT(A)”] vide order no. ITBA/NFAC/S/250/2024-25/1063876861(1) dated 03.04.2024 passed u/s. 250 of the Income Tax Act, 1961 (hereinafter referred to as “the Act”) for AY 2017-18.
Shri Jitendra Kr. Singh, Advocate appeared on behalf of the assessee and Shri Ashwani Kr. Singal, JCIT appeared on behalf of the revenue.
It was submitted by the Ld. AR that the assessee was under the control of another authorized representative and consequently the assessee was unable to represent in the course of assessment by producing all the evidence. It was the submission before the Ld. CIT(A) that the assessee had produced substantial evidence. It was the submission that the Ld. CIT(A) violated the provisions of Rule 46A of the Income Tax Rules, 1962 did not consider the evidence. It was the submission that there are two basic additions – one in regard to the estimation and the second in regard to the cash credits in the bank account of the assessee which were treated as unexplained cash credit. It was the submission that the assessee is maintaining his books of account and, therefore, the estimation of income is not permissible and in regard to the cash credits the same were recorded in the books of account maintained by the assessee and no addition on this account is also called for.
In reply, the Ld. Sr. DR vehemently supported the order of the Assessing Officer and the Ld. CIT(A). It was the submission that the assessee has not produced the evidence before the Assessing Officer. There is violation of rule 46A in regard to the evidence produced before the Ld. CIT(A). The violation of Rule 46A as recorded by the Ld. CIT(A) has not been challenged by the assessee and even before the Tribunal there is no application for admission of the additional evidence under Rule 29 of the ITAT Rules and under Rule 46A of the Income Tax Rules. It was the submission that the order of the Ld. CIT(A) is liable to be upheld.
We have consideresd the rival submissions. A perusal of the facts in the present case coupled with the statement of the Ld. AR at Bar clearly shows that the assessee was not represented before the Assessing Officer. Admittedly, no fault can be found on the part of the Assessing Officer for passing the ex parte order. However, as it is noticed that the assessee has produced evidence before the Ld. CIT(A) and before us also, therefore, in the interests of principles of natural justice, we are of the view that the issues in this appeal must be restored to the file of the Assessing Officer for re-adjudication after granting the assessee adequate opportunity of being heard.. As the assessee has not represented by producing evidence before the Assessing Officer, a cost of Rs.10,000/- is being levied and the same is to be paid by the assessee within sixty days of the date of this order. The cost should be paid to Gaya Bar Association and the receipt of the payment of the same is to be produced before ther Assessing Officer when the Assessing Officer proceeds with the set aside assessment. Should the assessee fail to make the payment of the cost within the stipulated time and produce the receipt thereof, the order of the Ld. CIT(A) shall stand confirmed.
In the result, the appeal of the assessee is partly allowed for statistical purpose with the directions given above.
Order dictated and pronounced in the open court.
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