MAHADEVI YALLINGAPPA DALAVAYI,GOKAK vs. INCOME TAX OFFICER WARD 1 GOKAK, GOKAK
Facts
The assessee deposited Rs. 20,97,500/- cash in a bank account which the Assessing Officer (AO) added under Section 69A, rejecting the assessee's explanation of agricultural land sale. The AO also made an addition for rental income. The CIT(A) sustained these additions, leading the assessee to appeal to the Tribunal.
Held
The Tribunal held that the CIT(A) erred by not providing the assessee with a proper opportunity to be heard and by overlooking evidence, especially regarding the sale of agricultural land. The CIT(A) merely relied on the AO's findings without considering the assessee's submissions. The matter was thus restored to the CIT(A) for a fresh adjudication on merits, ensuring due process.
Key Issues
Whether the CIT(A) was correct in sustaining additions under Section 69A and dismissing the appeal without providing a proper opportunity of hearing and considering the evidence submitted by the assessee.
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. 18/PAN/2025 (A.Y. 2017-18) Mahadevi Yallingappa Dalavayi Vs I T O Ward(1), H.No.191/3, Basavanagar, Dr Ghogeri Building, . Gokak-591307, Belgaum Road, Karnataka. Gokak-591307, Karnataka. PAN .No. BWXPD2154E (अपीलाथ�/Appellant) (��यथ�/Respondent)
Assessee by Shri.Mahesh Udadar.AR Revenue by Smt.Rijula Uniyal. Sr.DR सुनवाई क� तार�ख/Date of Hearing 28.07.2025 घोषणा क� तार�ख/Date of Pronouncement 29.07.2025 ORDER PER PAVAN KUMAR GADALE, JM: The appeal is filed by the assesse against the order of the NFAC Delhi/CIT(A) passed u/sec 143(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/sec 69A of the Act made by the Assessing Officer. 2. The brief facts of the case are that, the assesse has filed the return of income for A.Y.2017-18 on 2.08.2017 disclosing a total income of Rs.3,10,660/- and the case was selected for limited scrutiny under the CASS. The
2 ITA. No. 18/PAN 2025. Mahadevi Yallingappa Dalavayi. Assessing Officer (AO) based on the information from ITBA data found that, the assesse has made cash deposits in the savings bank account with Corporation Bank Gokak aggregating to Rs.20,97,500/- in the F.Y.2016-17 and the notice u/sec143(2) and u/sec142(1) of the Act are issued to furnish the details and sources of cash deposits. The assesse has filed the explanations and details mentioning the sources and particulars of sale of agricultural lands situated at pamaldinni village for a consideration of Rs.20,87,000/- on 14-03-2016 dealt at Para 4 & 5 of the order. 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.20,97,500/- and also made addition of rental income of Rs.1,97,940/-and finally assessed the total income of Rs.26,06,100/- and passed the order u/sec 143(3) of the Act dated 25.12.2019.
Aggrieved by the order, the assessee has filed an appeal before the CIT(A), whereas the CIT(A) has considered the grounds of appeal, statement of facts, submissions of the assessee and findings of the AO but has sustained the action of the A.O and dismissed the assessee appeal. Aggrieved by the order of the CIT(A), the assessee has filed an appeal before the Hon'ble Tribunal.
3 ITA. No. 18/PAN 2025. Mahadevi Yallingappa Dalavayi. 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. The Ld.AR mentioned that the CIT(A) has not dealt on the details, documents, confirmation and evidences filed in the appellate proceedings to substantiate the sale of agricultural lands and prayed for allowing the appeal. The Ld.AR supported the submissions with the factual paper book. Per Contra, the Ld.DR supported the order of the CIT(A).
We heard the rival submissions and perused the material on record. The sole crux of the disputed issue envisaged by the Ld.AR that the CIT(A) has erred in sustaining the addition u/sec69A of the Act without providing proper opportunity and overlooking the facts and material evidences. The assesse has filed all the details before the lower authorities and the CIT(A) has not considered the documents and information supporting the claim of the assesse. Prima-facie, the CIT(A) has dealt on the findings of the AO and has not considered the submissions/evidences of the assesse filed in the proceedings referred and has not allowed the grounds of appeal. Therefore, we considering the overall facts, circumstances and principles of natural justice shall provide with one more opportunity of hearing and accordingly restore the disputed issue to the file of the CIT(A) for afresh adjudication on merits and the CIT(A)
4 ITA. No. 18/PAN 2025. Mahadevi Yallingappa Dalavayi. shall provide adequate opportunity of being heard to the assessee and the assessee should also cooperate in submitting the information for early disposal of the appeal and the grounds of appeal of the assessee are allowed for statistical purpose.
In the result, the appeal filed by the assessee is allowed for statistical purposes.
Order pronounced in the open court on 29.07.2025.
Sd/- Sd/- (GD PADMAHSHALI) (PAVAN KUMAR GADALE) ACCOUNTANT MEMBER JUDICIAL MEMBER
Panaji Dated: 29/07/2025 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. 18/PAN 2025. Mahadevi Yallingappa Dalavayi.
Initial Date 1. Draft dictated on PS 2. Draft placed before author PS
Draft proposed & placed before 3. 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 8. Date on which file goes to the AR 9. Date on which file goes to the Head Clerk. 10. Date of dispatch of Order. 11. Dictation Pad is enclosed
