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Facts
The assessee, an NRI, made cash deposits of Rs. 18,00,000 during the demonetization period, which the AO added under Section 69A as unexplained. The assessee claimed the cash was withdrawn from an NRE account, but the AO found the explanation unsatisfactory. The CIT(A) subsequently confirmed the AO's addition and dismissed the assessee's appeal.
Held
The Tribunal held that the CIT(A) erred in sustaining the addition under Section 69A without providing proper opportunity to the assessee and overlooking material evidence. Therefore, the Tribunal restored the disputed issue back to the CIT(A) for fresh adjudication on merits, directing that adequate opportunity of being heard be provided to the assessee. The appeal was allowed for statistical purposes.
Key Issues
Whether the CIT(A) erred in sustaining an addition under Section 69A for unexplained cash deposits during demonetization, without providing proper opportunity and considering the assessee's explanations regarding cash withdrawal from an NRE account.
Sections Cited
143(3), 250, 143(2), 142(1), 69A
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Income Tax Appellate Tribunal, PANAJI BENCH
Before: SHRI PAVAN KUMAR GADALE & SHRI G D PADMAHSHALI
सुनवाई क� तार�ख/Date of Hearing 06.01.2025 घोषणा क� तार�ख/Date of Pronouncement 07.01.2025 ORDER
PER PAVAN KUMAR GADALE, JM:
The appeal is filed by the assesse against the order of CIT(A) Bengaluru 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 made by the Assessing Officer.
Alli Usman Aga.
The brief facts of the case are that, the assesse is a NRI and filed the return of income on 5-03-2018 disclosing a total income of Rs.20,400/- The Assessing Officer (AO) based on the information from ITBA data, found that the assesse has made cash deposits in the bank accounts during the demonetization period and the case was selected for limited scrutiny and further the notice u/sec143(2) and u/sec 142(1) of the Act along with questionnaire are issued. And there was compliance by the assesse. Whereas the A.O found that the assesse has made the cash deposits of Rs.18,00,000/- in the Corporation Bank Bhicholim branch Goa in the F.Y.2016- 17 and explanations were called to substantiate the deposits. And the assessee has filed the explanations mentioning that the cash was withdrawn from Canara bank SB NRE account and after meeting the personal expenditure balance amount was deposited in the Corporation Bank. Whereas as the AO has considered the information and was not satisfied with the explanations and dealt on the provisions of the Act and finally made an addition u/sec69A of the Act of Rs.18,00,000/- and assessed the total income of Rs.18,20,400/- and passed the order u/sec 143(3) of the Act dated 04.12.2019.
Alli Usman Aga. 3. 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 and findings of the AO and has issued notices of hearing and the assessee has filed the submissions and remand report was called from the A.O. But the CIT(A) has confirmed the action of the A.O and dismissed the appeal. Aggrieved by the order of the CIT(A), the assessee 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. The sole crux of the disputed issues envisaged by the assesse that the CIT(A) has erred in sustaining the addition u/s 69A of the Act without providing proper opportunity and overlooking the facts and material evidences. The assesse has filed the all the details before the lower authorities and the CIT(A) has not considered the facts of availability of cash balance with the assessee. Prima-facie the CIT(A) has dealt on the findings of the AO and has considered the submissions of the assessee and has not accepted the evidences. Therefore, we considering the overall facts, circumstances and principles of natural justice shall provide with one more opportunity of hearing and accodingly restore the disputed issue to the file of the CIT(A) for afresh adjudication on merits and the CIT(A) shall provide adequate opportunity of being heard to the Alli Usman Aga. 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 assessee is allowed for statistical purposes.
Order pronounced in the open court on 07.01.2025.