DHIREN KUMAR SAHOO,DHENKANAL vs. INCOME TAX OFFICER,DHENKANAL WARD,DHENKANAL, DHENKANAL
Facts
The assessee, an individual operating M/s. Kanchan Jewellers, filed a return for AY 2014-15 declaring Rs.2,19,870/-. Subsequently, an assessment u/s.143(3)/147 was completed, determining total income at Rs.7,57,541/-, including an addition of Rs.24,91,818/- u/s.40A(3), following an earlier ITAT order. The Id CIT(A) confirmed this addition as the assessee failed to provide supporting documents despite multiple opportunities, leading to the current appeal before the ITAT, which is the second round of proceedings.
Held
Despite the assessee not appearing before the Tribunal and having failed to submit documents to the Id CIT(A) previously, the Tribunal decided to provide another opportunity. The issues are restored to the file of the Id CIT(A) for fresh adjudication, with directions for the assessee to appear with necessary documentary evidence. If the assessee again fails to appear, the Id CIT(A) is at liberty to pass the order as per law.
Key Issues
Whether the addition under Section 40A(3) was correctly sustained by the CIT(A) due to the assessee's non-furnishing of evidence; and whether the assessee should be granted a further opportunity to present their case before the CIT(A).
Sections Cited
Section 148, Section 143(3), Section 147, Section 40A(3), Section 250
AI-generated summary — verify with the full judgment below
Per Bench
The present appeal is directed at the instance of assessee against the order of ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NAFC), New Delhi NFAC), Delhi dated 28/02/2025 in Appeal No.NFAC/2013-14/10071589 passed for Assessment Year 2014-15.
It is the second round of proceedings before the ITAT. Facts of the case are that the assessee is an individual, engaged in the business of gold
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& silver ornaments in the name and style of M/s. Kanchan Jewellers. The assessee filed the return of income on 29.9.2014 disclosing total income of Rs.2,19,870/-. Thereafter, notice u/s.148 of the Act was issued to the assessee on 30.12.2015 and the assessment u/s.143(3)/147 of the Act was completed determining the total income at Rs.7,57,541/-, inter alia, making an addition of Rs.24,91,818/- u/s.40A(3) of the Act. This addition was also made again in pursuance to the ITAT order dated 14.10.2019. Hence, the assessee has preferred appeal before the ld CIT(A) against the order u/s.147 r.w.s 250 of the Act.
On appeal, the ld CIT(A) confirmed the addition mainly on the ground that the assesse has not provided supporting documents/evidence to prove his claims except seeking adjournments throughout the entire proceedings. Hence, the assessee has preferred appeal before the Tribunal.
None appeared on behalf of the assessee nor was any adjournment petition filed, when the matter was called for hearing. Hence, I proceed to decide the appeal exparate qua assessee after hearing ld Sr. DR.
We have heard ld Sr DR and perused the record of the case. A perusal of the order of ld CIT(A) clearly shows that various opportunities were afforded to the assessee to represent his case, however, the assessee preferred to remain silent and filed adjournment petition. Therefore, ld CIT(A) proceeded to dispose of the appeal on the basis of material available
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on record. Against this order, the assessee has preferred appeal that means the assessee wants to contest the case. Before us, when the matter was called for hearing, the assessee did not appear nor file any adjournment petition. Considering the case of the assessee, in order to provide another opportunity to represent his case, the issues are restored to the file of the ld CIT(A) for fresh adjudication. The assessee is also directed to appear before the ld CIT(A) suo moto with necessary documentary evidence in support of the claim for disposal of the appeal. If the assessee fails to appear before the ld CIT(A), the ld CIT(A) is at liberty to pass the order as per law.
In the result, appeal of the assessee stands allowed for statistical purposes.
Order dictated and pronounced in the open court on 30/06/2025.
Sd/- Sd/- (RAJESH KUMAR) (DUVVURU RL REDDY) Accountant Member VICE PRESIDENT Cuttack: Dated 30/06/2025 B.K.Parida, Sr. PS (OS)
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Copy of the Order forwarded to : 1. The Appellant : Dhiren Kumar Sahoo, At: Gudianali, Dhenkanal, 759001
The Respondent : ITO, Dhenkanal Ward, Dhenkanal 3. The CIT(A)-, 4. Pr.CIT- 5. DR, ITAT, Cuttack 6. Guard file. //True Copy// By order
Asst.Registrar, Itat, cuttack
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