M/S SHAAN MERCADORES,GOA vs. INCOME TAX OFFICER WARD 1(4) PANAJI, GOA
Facts
The assessee, Shaan Mercadores, a firm trading in electrical and electronic goods, filed its ITR for A.Y. 2017-18. During scrutiny, the AO discovered cash deposits of Rs. 21,29,500/- in FY 2016-17, which were subsequently added under Section 69A of the Income Tax Act due to unsatisfactory explanations. The assessee's appeal to the CIT(A) was dismissed ex parte because of non-compliance with notices.
Held
The Tribunal noted the CIT(A)'s ex parte dismissal but recognized the principles of natural justice and potential valid reasons for the assessee's non-appearance. Granting another opportunity, the Tribunal set aside the CIT(A)'s order and remitted the matter back for fresh adjudication, ensuring the assessee is provided adequate opportunity to substantiate its case.
Key Issues
Whether the CIT(A) was justified in dismissing the appeal ex parte for non-compliance; and whether the assessee should be given an opportunity to explain the addition under Section 69A.
Sections Cited
143(3), 250, 69A, 143(2), 142(1)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, PANAJI BENCH
Before: SHRI PAVAN KUMAR GADALE & SHRI G D PADMAHSHALI
IN THE INCOME TAX APPELLATE TRIBUNAL PANAJI BENCH PANAJI BEFORE SHRI PAVAN KUMAR GADALE, JUDICIAL MEMBER & SHRI G D PADMAHSHALI ACCOUNTANT MEMBER I T A. Nos.131/PAN/2025 (A.Y.2017-18 ) Shaan Mercadores, Vs. I T O Ward1(4), Shop.No.S-8, Aaykar Bhavan, T.R. Mansion, EDC, Patto, St.Inez, Panjim-403001. Panaji-403001, Goa. Goa. PAN .No.ACBFS2744Q (अपीलार्थी/Appellant) (प्रत्यर्थी/Respondent)
Assessee by ShrI.Siddesh N Gaddi.AR Revenue by Smt.Rijula Uniyal.Sr.DR
सुनवाई की तारीख/Date of Hearing 12.08.2025 घोषणा की तारीख/Date of 14.08.2025 Pronouncement ORDER PER PAVAN KUMAR GADALE, JM: The appeal is filed by the assesse against the order of National Faceless Appeal Centre (NFAC) Delhi / CIT(A) passed u/sec143(3) and U/sec 250 of the Act. The assessee has raised the grounds of appeal challenging the order of the CIT(A) sustaining the addition u/se 69Aof the Act by the Assessing Officer. 2. The brief facts of the case are that, the assesse is a firm and is engaged in trading of electrical and electronic goods. The assesse has filed the return of income for
2 ITA. No. 131/PAN/2025 Shaan Mercadores. A.Y.2017-18 on 06.01.2018 disclosing a total income of Rs.5,28,228/-. Subsequently the case was selected for scrutiny under the CASS. The Assessing Officer (AO) based on the information from ITBA data found that, the assesse has made cash deposits in the Goa State Co-Op Bank Ltd aggregating to Rs.21,29,500/- in the F.Y.2016-17 and the notice u/sec143(2) and u/sec142(1) of the Act was issued to furnish the details and sources of cash deposits. The assessee has filed the explanations and details. Whereas the A.O was not satisfied with the explanations and dealt on the provisions of the Act and made addition u/sec69A of the Act of Rs.21,29,500/- and assessed the total income of Rs.26,57,728/- and passed the order u/sec 143(3) of the Act dated 30.12.2019. 3. Aggrieved by the order, the assesse has filed an appeal before the CIT(A), whereas the CIT(A) has considered the grounds of appeal, statement of facts and findings of the AO and has issued notices of hearing and since there was no proper compliance by the assesse to notices. Therefore the CIT(A) considering the information on record has dismissed the appeal. Aggrieved by the order of the CIT(A), the assessee has filed an appeal before the Hon'ble Tribunal. 4. At the time of hearing, the Ld.AR submitted that the CIT(A) has erred in confirming the action of the Assessing officer overlooking the information of the assessment proceedings. Further the assesse has a good case on merits
3 ITA. No. 131/PAN/2025 Shaan Mercadores. and shall substantiate with the material evidences and prayed for an opportunity to explain before the lower authorities. Per Contra, the Ld.DR supported the order of the CIT(A). 5. We heard the rival submissions and perused the material on record. Prima-facie the CIT(A) has passed the order considering the fact that there is no compliance nor appearance in spite of providing adequate opportunity of hearing and the notices were issued. Therefore, the CIT(A) was of the opinion that the assesse is not interested in prosecuting the appeal and passed the ex parte order. The CIT(A) has issued the notices of hearing on various dates referred at Para 4 of the order and there was no proper response and thus the Ld.CIT(A) came to a conclusion that the assessee is not interested and decided the appeal based on the information available on record. Whereas the assesse has raised grounds of appeal challenging the addition u/sec69A of the Act made by the A.O and there could be various reasons for non appearance which cannot be overruled. Therefore, considering the facts and principles of natural justice, we shall provide with one more opportunity of hearing to the assessee to substantiate the case with evidences and information. Accordingly, we set aside the order of the CIT(A) sustaining the addition made by the A.O and remit the disputed issue to the file of the CIT(A) to adjudicate afresh and the assesse should be provided adequate opportunity of
4 ITA. No. 131/PAN/2025 Shaan Mercadores. hearing and shall cooperate in submitting the information for early disposal of the Appeal. And, we allow the grounds of appeal of the assesse for statistical purpose. 6. In the result, the appeal filed by the assessee is allowed for statistical purpose. Order pronounced in the open court on 14.08.2025.
-S/d- -S/d- (GD PADMAHSHALI) (PAVAN KUMAR GADALE) ACCOUNTANT MEMBER JUDICIAL MEMBER Panaji Dated:14/08/2025
Copy of the Order forwarded to: 1. The Appellant, 2. The Respondent 3. The CIT(A)- 4. CIT 5. DR, ITAT, 6. Guard file. //True Copy// BY ORDER, (Asstt. Registrar)ITAT, Panaji
5 ITA. No. 131/PAN/2025 Shaan Mercadores.
Initial Date 1. Draft dictated on PS 2. Draft placed before author PS
Draft proposed & placed before PS the second member 4. Draft discussed/approved by PS Second Member. 5. Approved Draft comes to the PS Sr.PS/PS 6. Kept for pronouncement on 7. File sent to the Bench Clerk Date on which file goes to the 8. AR 9. Date on which file goes to the Head Clerk. 10. Date of dispatch of Order. 11. Dictation Pad is enclosed
