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Facts
The assessee, an individual, did not file an income tax return for AY 2017-18. The AO made an addition of Rs. 10,63,000/- under Section 69A for cash deposits during demonetization and Rs. 4,64,719/- on account of net profit rate. The CIT(A) dismissed the appeal, leading the assessee to file an appeal before the ITAT.
Held
The ITAT noted that the AO passed an ex-parte assessment order and the CIT(A)'s order was non-speaking and summarily dismissed the appeal. Consequently, the ITAT set aside the CIT(A)'s order and remanded the issue back to the AO to pass a fresh order in accordance with law, after providing the assessee a reasonable opportunity of being heard.
Key Issues
Challenge to addition under Section 69A for cash deposits during demonetization; validity of ex-parte assessment and non-speaking appellate order.
Sections Cited
253(3) of IT Act, 69A of the Act
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, ALLAHABAD BENCH “SMC”, ALLAHABAD
Before: SHRI SUBHASH MALGURIA & SHRI SANJAY AWASTHI
2017-2018 against impugned appellate order dated 27/05/2025 (DIN & Order No.ITBA/NFAC/S/250/2025- 26/1076477015(1) of Commissioner of Income Tax (Appeals) [“CIT(A)” for short]. In this appeal, the assessee has raised the following grounds:
“1. Because the order passed by Ld. CIT(A) is contrary to facts & law and circumstances of the case.
2. Because the Ld. CIT(A) has erred in dismissing the Ground of Appeal challenging addition of Rs.10,63,000/- u/s 69A of the Act on account of cash deposits into bank account by the appellant which is part of turnover of the business of the appellant. The cash of Rs.10,63,000/- deposited in the bank account during the demonetization period is liable to be assessed as part of turnover of the brick line business of the appellant and therefore separate addition under section 69A of Rs.10,63,000/- is liable to be deleted.”
This appeal has been filed by the assessee beyond time limit prescribed under section 253(3) of IT Act. The assessee has submitted application dated 04/08/2025, duly supported by an affidavit, for condonation of delay in filing of the appeal pleading that the delay was unintentional and beyond the control of the assessee and has requested to admit the appeal for hearing. The learned Sr. Departmental Representative did not express any objection to assessee’s application for condonation of delay in filing of the appeal. In view of the foregoing, and in specific facts and circumstances of the present appeal before us, the delay in filing of this appeal is condoned; and the appeal is admitted for hearing.
The facts of the case, in brief, are that the appellant assessee is an individual and has not filed his return of income for the year under consideration. The Assessing Officer completed the assessment and passed assessment order on 24/12/2019 and determined the total income of the assessee at Rs.15,27,719/- after making addition of Rs.10,63,000/- under section 69A of the Act and Rs.4,64,719/- on account of net profit rate. Being aggrieved, the assessee carried the matter in appeal before the learned CIT(A). The learned CIT(A), vide impugned appellate order dated 27/05/2025 has dismissed the appeal of the assessee. Being further aggrieved, the assessee is in appeal before the Income Tax Appellate Tribunal and has challenged the action of the learned CIT(A) in sustaining the addition of Rs.10,63,000/- made by the Assessing Officer under section 69A of the Act.
We have heard the rival parties and have gone through the material placed on record. On perusal of records, it is seen that the Assessing Officer has passed the assessment order ex-parte qua the appellant assessee and the order of learned CIT(A) is non-speaking order and has dismissed the appeal of the assessee in a summary manner. In view of the foregoing, the order of learned CIT(A) is set aside and the issue in dispute is remanded back to the file of the Assessing Officer with the direction to pass de novo order in accordance with law after providing reasonable opportunity of being heard to the assessee.
In the result, the appeal of the assessee stands allowed for statistical purposes.
(Order pronounced on 10/11/2025 in accordance with Rule 34(4) of the I.T.A.T. Rules)