RANN VIJAY SINGH,TEH. NAKODAR JALANDHAR vs. INCOME TAX OFFICER, NAKODAR
Facts
The assessee deposited Rs. 31,63,000/- in his savings bank account during the financial year 2011-12. The assessment was completed ex-parte due to lack of compliance from the assessee. The CIT(A) dismissed the assessee's appeal without adjudicating on merits.
Held
The Tribunal noted that the assessee suffered from a "non-organic psychotic disorder" which affected his ability to represent his case. It was also observed that ex-parte orders were passed at both the assessment and appellate stages.
Key Issues
Whether the CIT(A) erred in dismissing the appeal without considering the assessee's medical condition and request for adjournment, and upholding the addition for unexplained cash deposits and levy of interest.
Sections Cited
69A, 250, 144, 147, 234B, 234C, 234D
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Income Tax Appellate Tribunal, AMRITSAR BENCH, AMRITSAR
Before: SH. UDAYAN DASGUPTA & SH. KRINWANT SAHAY
Per Udayan Dasgupta, J.M.:
This appeal is filed by the assessee against the order of the ld. CIT(A) National
Faceless Appeal Centre (NFAC) Delhi dated 19.03.2024 passed u/s 250 of the
Income Tax Act, 1961 which has arisen out of the order of ITO, Ward, Nakodar.
Grounds of appeal taken by the assessee in Form No. 36 are as under:
“1. That the order of the ld. CIT(A) dated 19.03.2024 deserves to be set aside and restored to the file of CIT(A) as the request for adjournment of the hearing of appeal
2 I.T.A. No.299/Asr/2024 Rann Vijay Singh v. ITO was not properly appreciated and the appeal was decided without intimating the fresh date of hearing. 2. That the ld. CIT(A) has erred in upholding the addition of Rs.31,63,000/- made u/s 69A towards alleged unexplained cash deposits in the bank account. The dismissal of appeal for want of submissions was not justified particularly when this was due to medical reasons. 3. That the ld. CIT(A) has erred in confirming the levy of interest u/s 234B, 234C and 234D.”
The brief facts of the assessee are that the assessee has deposited an amount of
Rs.31,63,000/- in his Savings bank account at State Bank of Patiala during the
financial year 2011-12 relevant to the year under appeal. Proceedings were initiated
u/s 147 after obtaining necessary approval from higher authorities but there has not
been any compliance from the assessee even though the notices were duly served
through e-mail and the assessee has sought adjournment on one such occasion. In
absence of any compliance or any response from the assessee and in absence of any
explanations regarding the cash deposits at Rs. 31.63 lacs in his bank account, the
assessment was completed ex-parte u/s 144/147 by making an addition of
Rs.31,63,000/- to the total income.
The matter was carried in appeal before the ld. CIT(A) and it is seen from the
appellate order that the notices has been issued from the office of the ld. first
appellate authority on four different dates of hearing against which the assessee has
sought adjournment on two occasions but no submissions or written explanations has
been filed before the ld. CIT(A) on merits of the case. As such, in absence of any
3 I.T.A. No.299/Asr/2024 Rann Vijay Singh v. ITO compliance from the assessee, the ld. CIT(A) has dismissed the said appeal without
adjudication on merits of the case.
Now, the assessee is in appeal before the Tribunal on the grounds contained in
the Memorandum of Appeal. The ld. AR submits that the assessee is suffering from
Obsessive Compulsive disorder and other non-organic psychotic disorder which is
evidenced by the doctor’s certificate. The ld. AR of the assessee has also furnished
medical certificates and documents from Sareen Health Care Centre, Jalandhar, and
an affidavit was also filed by the assessee himself stating the fact that he is suffering
from a chronic psychotic disorder. Even though he has applied and prayed for
adjournment from the appellate authority he could not subsequently represent his
case along with all papers and documents before the ld. CIT(A), because of his
medical issue resulting in the appeal being dismissed.
The ld. AR further submitted that the ld. CIT(A) has disposed of the appeal
without considering the application for adjournment and considering the fact that the
assessment has also been passed ex-parte because at that particular period of time, the
assessee was medically unwell, he prays that an opportunity may please be allowed
to the assessee for explaining the credits in the bank account with supporting
documents.
The ld. DR relied on the order of the ld. CIT(A) and stated that in spite of
repeated opportunities, the assessee has not been able to explain the source of cash
4 I.T.A. No.299/Asr/2024 Rann Vijay Singh v. ITO deposited by him in his bank account and has not produced any documentary
evidences neither before the Assessing Officer, nor before this first appellate
authority and has not even stated as to the nature of source thereof. He further stated
that the assessee has been intentionally avoiding to appear and explain his case
before the department, and prays that the order of the ld. CIT(A) may please be
sustained.
We have considered the rival submissions and considered the materials on
record and the medical prescriptions and the doctors certificate filed before us where
the assessee is suffering from “non-organic phychotic disorder” since May, 2023 as
evident from the prescriptions and we also find that the cash of Rs.31,63,000/- which
has been deposited in the State Bank of India, Patiala in account number
xxxxxx19826 by the assessee during the financial year 2011-12 needs to be explained
and the source of such deposits is required to be proved to the satisfaction of the AO
by production of necessary papers, documents and supporting books of account if
any. We also note that the ex-parte order has been passed at the assessment stage and
also before the first appellate authority and as such in the fitness of things and in the
interest of justice, we remand the matter back to the files of the Assessing Officer for
fresh assessment on merits of the case after examining all papers and documents to
be produced by the assessee in support of his explanations of the cash deposits in the
bank account to the full satisfaction of the Assessing Officer and we direct the
5 I.T.A. No.299/Asr/2024 Rann Vijay Singh v. ITO asseseee to fully co-operate in the fresh assessment proceedings and to file all
necessary documentary evidences and explain the source and the nature of the said
cash deposits in bank account.
In the result, the appeal filed by the assessee is allowed for statistical purposes.
Order pronounced in accordance with Rule 34(4) of the Income Tax (Appellate
Tribunal) Rules, 1963 as on 09.01.2025
Sd/- Sd/- (Krinwant Sahay) (Udayan Dasgupta) Accountant Member Judicial Member *GP/Sr.PS* Copy of the order forwarded to: (1)The Appellant: (2) The Respondent: (3) The CIT concerned (4) The Sr. DR, I.T.A.T
