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Income Tax Appellate Tribunal, “D” BENCH : KOLKATA
Before: Hon’ble Shri M.Balaganesh, AM & Hon’ble Shri S.S.Viswanethra Ravi, JM]
ORDER Per M.Balaganesh, AM
This appeal by the assessee arises out of the order of the Learned Commissioner of Income Tax(Appeals)-12, Kolkata [in short the ld CIT(A)] in Appeal No.10006/CIT(A)-12/Kol/Ward-40(4)/2016-17 dated 17.07.2017 against the order passed by the ITO, Ward-40(4), Kolkata [ in short the ld AO] under section 143(3) of the Income Tax Act, 1961 (in short “the Act”) dated 18.03.2016 for the Assessment Year 2013-14.
The only issue to be decided in this appeal is as to whether the Ld. CIT(A) was justified in confirming the addition of Rs. 1,36,05,017/- being the amount credited in the undisclosed bank account of the assessee, in the facts and circumstances of the case.
Nadim Amin A.Yr. 2013-14 3. The brief facts of this issue is that the assessee is an individual and is a proprietor of M/s Cosmo Guest House, Amina Foods and Esplanade Chamber Guest House, engaged in the business of running a restaurant and guest house. The return of income for the assessment year 2013-14 was filed by the assessee on 03.10.2013 declaring total income of Rs. 13,27,610/-. The ld. AO observed in his assessment order that the requisite documents, information, documents with supporting documents were provided by the assessee and the same were examined by him. The ld. AO observed that the assessee was maintaining three savings bank accounts with HDFC bank and the following sums were credited in the form of cash and cheques as under: A/c No. Total Deposit (including cash deposit) amount 03341000068835 96,94,160/- 03341000068914 39,00,657/- 03341000069922 10,200/- Total 1,36,05,017/- The ld. AO observed that these bank accounts were not disclosed in his balance sheet filed along with the return of income. The assessee accepted the fact that these are undisclosed bank accounts and stated that the peak balance of the credits thereon should be subjected to tax and not the entire deposits made in the bank accounts. The assessee also pleaded that there were frequent withdrawals made from undisclosed bank accounts which were deposited by him in these subject mentioned three bank accounts. The ld. AO however did not agree to this proposition of the assessee and proceeded to treat the entire credits in the bank account as undisclosed income of the assessee for the year under consideration. The Ld. CIT(A) gave several opportunities to the assessee to appear before him and present his case. Though adjournments were taken on several occasions by the assessee and the last date of hearing fixed on 27.06.2017, the assessee did not make any compliance before the Ld. CIT(A) and accordingly, the Ld. CIT(A) proceeded to dismiss the appeal of the appeal by stating that the assessee has not Nadim Amin A.Yr. 2013-14 furnished further evidences in support of its grounds of appeal. Aggrieved, the assessee is in appeal before us.
We have heard the rival submissions. The ld. AR pleaded for one last opportunity to be provided to the assessee before the Ld. CIT(A) for adjudication of the issues on merits. The ld. DR vehemently objected to the same by reiterating that the Ld. CIT(A) having issued sufficient notices to the assessee on various dates, wherein adjournments were sought for by the assessee and there was absolutely no compliance by the assessee on the final date of hearing which warranted him to dismiss the appeal of the assessee ex parte. In the facts and circumstances of the case, we deem it fit and appropriate, in the interest of justice and fair play to remand this issue to the file of the Ld. CIT(A) to decide the issue raised before him afresh, in accordance with law on or before 31.01.2019. The assessee is hereby directed to co-operate with the Ld. CIT(A) for expeditious disposal of the appeal before him and not to take any adjournment except due to exceptional or bonafide circumstances. Accordingly, grounds raised by the assessee are allowed for statistical purposes.
In the result, the appeal of the assessee is allowed for statistical purposes.
Order pronounced in the Court on 05. 09.2018