UDAY KARCHI,BELAGAVI vs. INCOME TAX OFFICER WARD 4 BELAGAVI, BELAGAVI
Facts
The assessee filed an income return for AY 2017-18, and the Assessing Officer (AO) made additions under sections 69A and 69C, totalling over Rs. 56 lakhs, due to unexplained cash deposits and dissatisfaction with explanations. The CIT(A) upheld these additions and dismissed the assessee's appeal ex-parte due to non-compliance with hearing notices. Aggrieved by this ex-parte order, the assessee filed an appeal before the Tribunal.
Held
The Tribunal, applying principles of natural justice, noted that the CIT(A) had passed an ex-parte order despite potential valid reasons for the assessee's non-appearance. It set aside the order of the CIT(A) and remitted the entire disputed issues back to the CIT(A) for fresh adjudication on merits, directing that the assessee be provided adequate opportunity of hearing to substantiate their case with evidence.
Key Issues
Whether the CIT(A) was justified in dismissing the appeal ex-parte and sustaining additions under sections 69A and 69C without providing adequate opportunity to the assessee, and if the principles of natural justice warrant a fresh adjudication.
Sections Cited
143(3), 147, 250, 142(1), 69A, 69C
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.54/PAN/2025 (A.Y. 2017-18) Uday Karchi, Vs I.T.O Ward-4, Post.Ainapur,Karchi Gully Civil Hospital Road, . Taluka,Athani, Belgaum-590001. Belgaum-591303, Karnataka. Karnataka. PAN/GIR No. BEWPK2983K (अपीलाथ�/Appellant) (��यथ�/Respondent) Assessee by None. Revenue by Shri.Sureshkumar C.B.Sr.DR
सुनवाई क� तार�ख/Date of Hearing 30.04.2025 घोषणा क� तार�ख/Date of Pronouncement 30.04.2025 ORDER PER PAVAN KUMAR GADALE ,JM: The assesse has filed the appeal against the order of the NFAC/CIT(A) Delhi passed u/sec143(3) r.w.s147 and u/sec 250 of the Act. The assesse has raised the grounds of appeal challenging the ex-parte order of the CIT(A) sustaining the additions made by the Assessing Officer.
The brief facts of the case are that, the assesse has filed the return of income for the A.Y.2017-18 disclosing a total
2 ITA. No.54/PAN/2025 Uday Karchi. income of Rs.1,60,940/- on 30.03.2018. The case was selected for scrutiny. The Assessing Officer (AO) based on the information found that the assesse has made cash deposits in the banks and has substantial agricultural income and the notice u/sec142(1) of the Act was issued to furnish the details and sources of investments/ deposits and there was compliance. Whereas the A.O found the cash deposits credits in the bank accounts maintained with (i) Union Bank of India (ii) Federal Bank and (iii)Syndicate Bank and explanations were called to substantiate the credits in the F.Y.2016-17. And the assessee has filed the details on various dates on the cash deposits, agricultural income and other details. Whereas the A.O was not satisfied with the explanations and dealt on the provisions and made additions u/sec69A of the Act aggregating to Rs.49,26,102/-and U/sec69C of the Act of Rs.6,88,488/- and finally assessed the total income of Rs.57,75,530/- and passed the order u/sec143(3) of the Act dated 23.12.2019.
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 compliance by the assessee to notices. Therefore the CIT(A) considering the information on record has confirmed the action of the A.O and dismissed the appeal. Aggrieved
3 ITA. No.54/PAN/2025 Uday Karchi. by the order of the CIT(A), the assesse has filed an appeal before the Hon'ble Tribunal.
We heard the Ld.DR submissions and perused the material on record and none appeared on behalf of the assesse. Prima-facie the CIT(A) has passed the order considering the fact that there is no compliance in spite of providing adequate opportunity of hearing and the notices were issued. Therefore, the CIT(A) was of the opinion that the assessee is not interested in prosecuting the appeal and dismissed the appeal ex-parte confirming the action of the assessing officer. The Ld. CIT(A) has issued the notices of hearing referred at Page 3 Para 3.1 of the CIT(A) order but there was no 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 assessee has raised grounds of appeal challenging the additions by the A.O and there could be various reasons for non appearance which cannot be overruled. Therefore, considering the 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, set aside the order of the CIT(A) and remit the entire disputed issues to the file of the CIT(A) to adjudicate afresh on merits and the assessee should be provided adequate opportunity of hearing and shall cooperate in submitting the information
4 ITA. No.54/PAN/2025 Uday Karchi. for early disposal of appeal. And, we allow the grounds of appeal of the assessee for statistical purposes.
In the result, the appeal filed by assesse is allowed for statistical purposes.
Order pronounced in the open court on 30.04.2025.
Sd/- Sd/- (GD PADMAHSHALI) (PAVAN KUMAR GADALE) ACCOUNTANT MEMBER JUDICIAL MEMBER Panaji Dated: 30/04/2025 Copy of the Order forwarded to: 1. The Appellant, 2. The Respondent 3. The CIT(A)- 4. CIT 5. DR, ITAT, Mumbai 6. Guard file. //True Copy//
BY ORDER, (Asstt. Registrar)ITAT, Panaji
5 ITA. No.54/PAN/2025 Uday Karchi.
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 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
