SURESH KUMAR,MANAS BHAWAN, RNT MARG, INDORE vs. ITO, BURHANPUR, INDORE

Per Paresh M Joshi, J.M.:

This is an Appeal filed by the Assessee under section 253 of

the income tax Act 1961,[ herein after referred to as the Act

for the sake of brevity] before this tribunal as & by way of a

second Appeal. The Assessee is aggrieved by the order

bearingNumber:-ITBA/NFAC/S/250/2024-25/1071271588(1)

dated 16.12.2024 passed by the Ld. CIT(A) u/s 250 of the

Act, which is herein after referred to as the “Impugned

order”. The Relevant Assessment year is 2013-14 and the

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corresponding previous year period is from 01.04.2012 to

31.03.2013.

2.1 That as and by way of an Assessment order made u/s

147 rws 144/144B of the Act, the total income of the

Assessee was computed & assessed at Rs. 67,95,681/-.The

total income as per the return of income was at

Rs.2,59,581/-. The Addition of Rs. 65,36,100/- was made

as unexplained money u/s 69A of the Act. The aforesaid

“Assessment order” bears No. ITBA/AST/S/147/2021-

22/1035850748(1) & that the same is dated 24.09.2021

which is herein after referred to as the “Impugned

Assessment Order”

2.2 That the assessee is an individual & a non-filer for the

AY 2013-14.

2.3 The as per the Annual Information Report (AIR) the

assessee had deposited cash amounting to Rs. 64,19,300/-

in his Bank account bearing No. 950610110004186

maintained in the Bank of India during FY 2012-13

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relevant to AY 2013-14. Notice u/s 148 of the Act was issued

& duly served upon the assessee on 18.12.2019 on the

registered e-mail id. The assessee did not make any

compliance.

2.4 It is recorded in the “Impugned Assessment Order” as

follows :-

“Thereafter, notice u/s 142(1) was issued on 29.01.2021 requesting the assessee therein to file his return of income in response to the notice issued u/s 148. The assessee did not make compliance in response to the notice and did not file his return of income. A letter was issued on 05.02.2021 requesting the assessee to make compliance and file his return of income and also submit all the details and documents sought for but the assessee again made no compliance, Another opportunity was given to the assessee on 19.08.2021 but the assessee again simply ignored the notice and did not make any compliance. The assessee also did not file the return of income till date.

2.5 It is also recorded in the “Impugned Assessment Order”

as follows:-

“[1] Unexplained money u/s 69A It was gathered from the record available in the system as per AIR information that the assessee had deposited cash amounting to Rs. 64,19,300/- in his bank account bearing No. 950610110004186 maintained in the Bank of India, Burhanpur during the FY 2012-13 relevant to the AY 2013-14. During the course of assessment proceeding, assessee did not submitted the details explaining the source of the above said cash deposit despite availing the ample opportunities.

A Notice u/s 133(6) vide notice no ITBA/AST/S/133(6)(N)/2021- 22/1035530475(1) calling for information was issued to the Branch Manager Burhanpur Branch of Bank of India where

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assessee had his account on 13.09.2021. In reply the branch manager has provided the details and copy of bank account statement for the period under consideration. The total cash deposited during the period as per the bank account statement is Rs. 65,36,100/-

As the assessee had not file his return of income u/s 139(1) originally for the AY 2013-14 and also did not file his return of income in response to the notice issued u/s 148 and has not submitted any documentary details explaining the source of cash deposit, amount of Rs. 65,36,100/- deposited in cash in the bank account remains unexplained and the same is liable to be treated as unexplained money u/s 69A. As per the section 69A of the IT Act, 1961 "Where in any financial year the assessee is found to be the owner of any money, bullion, jewellery or other valuable article and such money, bullion, jewellery or valuable article is not recorded in the books of account, if any, maintained by him for any source of income, and the assessee offers no explanation about the nature and source of acquisition of the money, bullion, jewellery or the other valuable article, or the explanation offered by him is not, in the opinion of the [Assessing officer), satisfactory, the money and the value of the bullion, jewellery or other valuable article may be deemed to be the income of the assessee for such financial year.”

2.6 That the assessee being aggrieved by the “Impugned

Assessment Order” prefers the first appeal u/s 246A of the

Act before the Ld. CIT(A) who by the “Impugned Order” has

dismissed the first appeal of the assessee on the grounds &

reasons stated therein. The core grounds & reasons for the

dismissal of the first appeal were as under:-

“4.During the course of appeal proceedings, hearing notices were sent on 06.09.2024, 26.09.2024, 17.10.2024, 06.11.2024 and 25.11.2024. However, the appellant did not respond to the notices issued. Upon perusal of the appeal memo, the appellant filed a

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delay condonation petition by claiming that he was aware of the assessment proceedings when he received the recovery notice u/s 226 of the IT Act. As per the principles of natural justice, the delay in filing the appeal is condoned and the appeal is admitted for adjudication. It is to be mentioned here that the appellant did not submit any statement of facts and he mentioned in the appeal memo that the statement of fact will be submitted at the time of hearing. In the grounds of appeal, the appellant claimed that the cash deposited into the bank account was agricultural income. It is for these reasons, several notices were issued by giving ample opportunities to the appellant to substantiate the grounds raised in the appeal memo. As he has not responded to all those notices, it is evident that the claim of the appellant that cash deposited into the bank account was out of agricultural income was not acceptable. Hence, the addition of Rs.65,36,100/- made as unexplained money is upheld. Further, the addition of Rs.2,59,581/- as Salary Income is also upheld. 5. As a result, this appeal is dismissed.”

2.7 The assessee being aggrieved by the “Impugned Order”

has preferred the instant second appeal before this Tribunal

& has raised the following grounds of appeal in the form No.

36 against the “Impugned Order” which are as under:-

“1. On the facts and circumstances of the case and in law, the learned Commissioner of Income tax (Appeals) ("CIT(A)") erred in upholding the reassessment proceedings as the income has not escaped assessment and the assessment order passed by the AO was bad in law. The Appellant prays that the said order be quashed and the additions thereby be deleted. 2. On the facts and circumstances of the case and in law, the learned Commissioner of Income tax (Appeals) ("CIT(A)") erred in exparte dismissing the appeal of the Assessee and thereby confirming the addition made by the Assessing Officer. The Appellant prays that the said order be set aside to the CIT(A) for hearing on merits. 3. On the facts and circumstances of the case and in law the CIT(A) erred in confirming the addition of Rs.2,59,581/- under Section 15 of the Act. The Appellant prays that the said addition be directed to be deleted.

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3.1 The hearing in the matter took place before this Tribunal

on 13.01.2026 when the Ld. AR for & on behalf of the

assessee appeared before us & interalia contended that the

“Impugned Order” is bad in law, illegal & not proper. It is in

the violation of the principles of natural justice. It therefore

deserves to be set aside. It was submitted that the

“Impugned Assessment Order” as well as “Impugned

Order” are exparte. It was submitted that the ‘assessment

proceedings’ commenced on 18.12.2019 with service of

notice u/s 148 of the Act. It was submitted that the assessee

is a non-filer. Assessee stays in small town Burhanpur MP.

He has a small salary income too. He is not much familiar

with computer & other devices of Information technology

world. Notice u/s 148 was issued before Covid period. The

opportunities were afforded to the assessee during he covid

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period on 05.02.2021 & 19.08.2021. It is recorded in the

“Impugned Assessment Order” that an amount of Rs.

2,59,581/- was paid to assessee by Tamilnadu State

Transport Corporation (Tirunelveli) Ltd. After deduction of

TDS of Rs.1896/ u/s 192. In so far as the “Impugned

Order” is concerned is was submitted that no physical copy

of notice of hearing came to the assessee. There was no

service on e-mail id too. It was submitted that in the form No.

35 e-mail id given was rejuk076@gmail.com whereas e-mail

was sent on ca_gdmit@rediffmail.com The relevant e-mail

dated 25.11.2024 was placed on record evidencing that

notice u/s 250 was sent on ca_gdmit@rediffmail.com & not

on rejuk076@gmail.com. It was finally contended that there

is a breach of the principles of natural justice & ultimately

no opportunity could be availed off by the assessee. Per

contra the Ld. DR for & on behalf of the revenue submitted

that in the peculiar facts & circumstances of the present

case in hand the revenue has no objection if the impugned

order is set aside & the matter is remanded back to the file

of the Ld. AO for fresh adjudication & ad judgment basis

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merits of the case. The Ld. DR emphasised that a small

token cost be imposed on the assessee as & by way of a

deterrent measure in order to meet the ends of justice. In the

rejoinder the Ld. AR submitted that an amount of Rs. 2500/-

as & by way of cost would be just fair & equitable.

4.1 We have to decide the legality, validity and proprietary of the

“impugned order” basis records of the case & the rival

submission canvassed before us.

4.2 We have carefully perused the records of the case and have

heard the submissions.

4.3 We basis records of the case & after hearing & upon

examining the contentions of the Ld. AR & the Ld. DR canvassed

before us, are of the considered opinion that the “Impugned

Assessment Order” is under section 144/144B of the Act &

the matter in the ultimate analysis of things has not been

adjudicated & adjudged basis merits. Even the “Impugned

Order” is not on merits. This Tribunal desires that the total

income of the assessee should be computed & assessed on

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the real time basis exigible to tax in accordance with law by

following the due process of law under the Act. This

Tribunal also expects the assessee to be compliant & should

cooperate with the department as & when notice(s) etc are

issued. In brief this Tribunal desire the meritorious disposal

of both the “Impugned Assessment Order” as well as the

“Impugned Order”. The assessee’s cooperation in this

regard assumes importance. The assessee cannot go in

slumber mode. In the result we are of the considered

opinion that the “Impugned Order” should be set aside &

the matter should be remanded back to the file of the Ld. AO

for passing a fresh order on the merits of the case. It is the

expectation of this Tribunal that the assessee would give his

full & complete details including the latest e-mail of his &

his counsel where the notice(s) could be served

effectively by the department. The assessee to attend

hearings as & when fixed & file reply submissions & all the

material details as is sought by the Ld. AO.

4.4 In the premises drawn up by us, we set aside the

“Impugned Order” & remand the case back to the file of the

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Ld. AO on denovo basis who shall now pass a fresh speaking

& well-reasoned order basis merits of the case. The assessee

is directed to pay to the department cost of Rs. 2500/- to the

department of income tax as & by way of a challan under the

category others. The assessee is directed not to take any

credit against payment of cost of Rs. 2500/- towards taxes,

interest etc.

5 Order

5.1 In the result the “Impugned Order” is set aside as & by

way of remand back to the file off the Ld. AO with directions

as per para 4.3 & 4.4 above.

5.2 In the result appeal of the assessee is allowed for

statistical purpose.

pronounced in open court on 22.01.2026.

Sd/- Sd/-

(BHAGIRATH MAL BIYANI) (PARESH M JOSHI) ACCOUNTANT MEMBER JUDICIAL MEMBER

Indore Dated : 22/01/2026 Patel/Sr. PS

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Copies to: (1) The appellant (2) The respondent (3) CIT (4) CIT(A) (5) Departmental Representative (6) Guard File By order UE COPY Senior Private Secretary Income Tax Appellate Tribunal Indore Bench, Indore

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