SURESHKUMAR GHEWARCHAND HUNDIA,GRANT ROAD,OPP. SHALIMAR CINEMA,MUMBAI vs. ITO,CENTRAL CIRCLE 8(4), MUMBAI, AAYAKAR BHAWAN,MUMBAI

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ITA 5926/MUM/2024Status: DisposedITAT Mumbai31 December 2024AY 2017-183 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal, after considering the rival submissions, deemed it appropriate to remand the case to the Learned CIT(A) in the interest of justice. The Tribunal noted that the assessee's primary ground was the lack of adequate opportunity of being heard. The Learned DR also agreed to this proposition. Therefore, the Tribunal directed that an adequate opportunity should be provided to the assessee by the Learned CIT(A) and also directed the assessee to make requisite compliance before the Learned CIT(A). The issue regarding the addition under Section 68 was not adjudicated on merits, as the matter was being remanded on procedural grounds. The Tribunal did not expressly leave any issue undecided, but the substantive issue of the addition under Section 68 was not decided.

What were the facts?

The assessee, Sureshkumar Ghewarchand Hundia, filed an appeal before the Income-Tax Appellate Tribunal (ITAT), Mumbai, against the order of the Commissioner of Income-tax (Appeals) [CIT(A)] dated 19.09.2024 for Assessment Year 2017-18. The assessee's original return declared an income of Rs. 11,88,410/-. The case was selected for limited scrutiny concerning cash deposits during demonetization. The Assessing Officer (AO) finalized the assessment at Rs. 3,74,51,740/-, making an addition of Rs. 36,27,334/- under Section 68 of the Income-tax Act, 1961, for unexplained cash deposits. The assessee appealed to the CIT(A), but due to repeated adjournments sought by the assessee, the CIT(A) decided the appeal ex-parte and dismissed it.

What were the issues?

1. Whether the Learned CIT(A) erred in confirming the action of the Learned AO in passing the impugned order without providing an adequate opportunity of being heard to the assessee, as per Section 250 of the Income-tax Act, 1961? 2. Whether the Learned CIT(A) erred in confirming the action of the Learned AO in making an addition of Rs. 3,62,63,334/- (note: the facts mention Rs. 36,27,334/- and ground 2 mentions Rs. 3,62,63,334/-; the Tribunal's decision refers to the amount in the AO's order) by treating the same as unexplained cash credit under Section 68 of the Income-tax Act, 1961? Assessee's Contentions: - The assessee argued that an adequate opportunity of being heard was not provided by the Learned CIT(A). - The assessee requested that the matter be remanded back to the Learned CIT(A) for fresh adjudication. Revenue's Contentions: - The Learned DR agreed to the proposition of the assessee for remanding the case.

Which sections of the Income-tax Act were involved?

Section 68,Section 250

AI-generated summary — verify with the full judgment below

Before: SHRI SAKTIJIT DEY & SMT. RENU JAUHRI

For Appellant: Ms Kavita Nabera on behalf of
For Respondent: Shri Ram Krishn Kedia
Hearing: 31.12.2024Pronounced: 31.12.2024

Assessee by : Ms Kavita Nabera on behalf of K.C. Jain & Co. Revenue by : Shri Ram Krishn Kedia Date of Hearing 31.12.2024 Date of Pronouncement 31.12.2024 आदेश / O R D E R PER RENU JAUHRI [A.M.] :- This appeal is filed by the assessee against the order of the Learned Commissioner of Income-tax (Appeals), Mumbai-48/National Faceless Appeal Centre, Delhi [hereinafter referred to as “CIT(A)”] dated 19.09.2024 passed u/s. 250 of the Income-tax Act, 1961 [hereinafter referred to as “Act”] for Assessment Year [A.Y.] 2017-18.

2.

The assessee has raised following grounds of appeal:

1. On the facts and circumstances of the Appellant's case and in law the Id. CIT(A) erred in confirming the action of Id. A.O. in passing the impugned order, without providing adequate opportunity of being heard to the assessee.

A.Y. 2017-18 Sureshkumar Ghewarchand Hundia 2. On the facts and circumstances of Appellant's case and in law the Id. CIT (A) erred in confirming the action of the Id. A.O. in making an addition of Rs. 3,62,63,334/-, by treating the same as unexplained cash credit u/s 68 of the Act, for the reasons mentioned in the impugned order or otherwise.

3.

The appellant craves leaves to alter, amend, withdraw or substitute any ground or grounds or to add any new ground or grounds of appeal on or before the hearing.”

3. Brief facts of the case are that the return declaring income of Rs. 11,88,410/- was filed on 24.10.2017. The case was selected for limited scrutiny to verify the cash deposits made during the demonetization period. The assessment was finalized at an income of Rs. 3,74,51,740/- after making addition of Rs. 36,27,334/- on account of unexplained cash deposits u/s 68 of the Act.

4. Aggrieved with the order, the assessee filed an appeal before Ld. CIT(A). During the course of appellate proceedings, several notices were issued to the assessee. However, the assessee sought adjournment every time, hence, the Ld. CIT(A) proceeded to decide the appeal exparte and dismissed the appeal of the assessee vide order dated 19.09.2024. Aggrieved with the order of the Ld. CIT(A), the assessee is in appeal before us.

5. At the outset, it was submitted by the Ld. AR that an adequate opportunity of being heard was not given to the assessee by the Ld. CIT(A). It was, therefore, requested that the matter may be remanded back for a fresh adjudication by Ld. CIT(A). Ld. DR has agreed to the proposition of the assessee.

A.Y. 2017-18 Sureshkumar Ghewarchand Hundia 6. After considering the rival submissions, we deem it appropriate to remand the case to the Ld. CIT(A) in the interest of the justice. Needless to say that an adequate opportunity should be provided to the assessee and the assessee is also directed to make requisite compliance before Ld. CIT(A). 7. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open court on 31.12.2024.

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