AJAY BABURAM GUPTA,NAVI MUMBAI vs. COMMISSIONER OF INCOME-TAX (APPEALS), NATIONAL FACELESS APPEAL CENTRE (NFAC)

ITA number 2311/M/2024 A.Y. 2017-18 Ajay Babu ram Gupta V Income Tax Officer Ward 34 (1) (1),Mumbai above sum was received from his father who has passed away. The learned assessing officer noted that assessee has also deposited cash of Rs. 71.87 lakhs during financial year 2015 – 16 and had claimed during the course of scrutiny proceedings of that year that source of cash deposit was received from father of Rs. 68.49 Lacs. The learned assessing officer noted that assessee has failed to substantiate that he had actually received an amount of this magnitude from his father and further how his father came to be in possession of such huge sum. Therefore, he rejected the explanation of the assessee and made an addition under section 69A of the act determining the total income of the assessee at Rs. 1,940,600 by the assessment order. 5. Assessee aggrieved with the same preferred an appeal before the learned CIT – A. Assessee was granted six of opportunities but none of them was availed and therefore the learned CIT – A dismissed the appeal of the assessee. Further on the merits also as no submission was made, his appeal was dismissed, and the addition was confirmed. 6. The assessee preferred an appeal before us. The learned advocate Mr.parsham Kumar Doshi appeared before us and submitted that learned Commissioner of income tax appeal erred in passing the assessment order without giving show cause notice of being heard. It was also the contention of the advocate that the assessment is made on the basis of exemption, submission and totally ignored the facts of the case. He therefore submitted that the appellate order passed by the learned CIT – A is not sustainable. His argument was also that the assessment of the cash deposited by the assessee is out of the source of the funds received from father of the assessee who passed away and therefore same cannot be added under section 69A of the act in the hands of the assessee. 7. The learned departmental representative vehemently submitted that the assessee has stated that he has received a sum of Rs. 69 lakhs Page | 3

ITA number 2311/M/2024 A.Y. 2017-18 Ajay Babu ram Gupta V Income Tax Officer Ward 34 (1) (1),Mumbai from his father who has passed away. assessee has failed to explain how his father came into possession of the above sum, neither the return of income of his father nor the availability of cash on hand with his father was found to be valid. Merely submitting an authorized document did not serve the purpose that the above sum deposited can be considered as genuine. He submits that the assessee categorically stated that he does not want to state anything further before the assessing officer in response to the show cause notice. However, in response to the notice issued by the learned CIT – A on 5 different occasions he did not remain present and therefore now there is no question of any relief on the merit to the assessee. He further submitted that the argument of the learned authorized representative of the assessee is not valid as the learned CIT – A to give any show cause notice, he has already given an opportunity of hearing to the assessee on 6 different occasions which were not availed of by the assessee and therefore all the argument of the learned that authorized representative are devoid of any merit. He further submitted that the learned authorized representative has not submitted anything on merit that how the assessee was in possession of such a huge cash amount. He submitted that the orders of the learned lower authorities be confirmed. 8. We have carefully considered the rival contentions and perused the orders of the learned lower authorities. Facts clearly show that the assessee is an individual who is drawing a meagre salary of Rs. 171,210, has filed the return of income declaring total income of rupees nil, he has 10 different bank accounts with various banks wherein he has deposited in cash during demonetization period ranging from Rs. 25,000 to Rs 2,15,000/-in his bank account. assessee explained that cash amounting to Rs. 68.49 Lacs was available with the assessee when his father passed away on 6/11/2017. Out of that he has already deposited a sum of Rs. 71.87 Page | 4

ITA number 2311/M/2024 A.Y. 2017-18 Ajay Babu ram Gupta V Income Tax Officer Ward 34 (1) (1),Mumbai lakhs during financial year 2015 – 16 and further Rs. 1,941,600 during this year. The claim of the learned AO is that every year he’s depositing cash in his bank account and saying that the amount of cash deposit is received from his father who has passed away. Therefore, it is not known that what amount of cash his father has left with the assessee at the time of his death and what is the source of income of his father who have accumulated such a hugecash. Be that as it may be, before the learned and CIT – A assessee failed to produce any information but has merely requested for the adjournment on 4 times and on fifth time did not submit any information. Therefore, the assessee is merely running away from the assessment proceedings and before ours has stated that the order of the learned lower authorities are not sustainable. We are not agreeable to the contention of the assessee that the order of the learned lower authorities is not sustainable, however we agree that the assessee should be given one more opportunity because of smallness of the income of the assessee, before the learned CIT – A. The assessee is directed to submit the details of genuineness of the cash deposited in his 10 bank accounts amounting to Rs. 1,941,600/- by producing cogent evidence. The learned CIT – A is directed to examine the claim of the assessee on its on merit and may also examined that on identical facts and circumstances for assessment year 2015 – 16 the assessee has already deposited Rs. 72 lakhs in his bank account. The assessee may be granted an opportunity of hearing, if asked for. After that, the learned CIT – A decide the issue on the merits of the case. If assessee fails to submit any information, the learned CIT – A is free to pass the order on the merits. In the result all the grounds of the appeal, without deciding on merits of the case and on the addition, is restored back to the file of the learned CIT – A with direction to the assessee to make submission immediately as soon as called for without seeking any adjournment. Page | 5

ITA number 2311/M/2024 A.Y. 2017-18 Ajay Babu ram Gupta V Income Tax Officer Ward 34 (1) (1),Mumbai 9. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open court on 29th July 2024

Sd/- Sd/-

(SUNIL KUMAR SINGH) (PRASHANT MAHARISHI) (JUDICIAL MEMBER) (ACCOUNTANT MEMBER)

Mumbai, Dated: 29.07 .2024 Sudip Sarkar, Sr.PS/Dragon Copy of the Order forwarded to: 1. The Appellant 2. The Respondent 3. CIT 4. DR, ITAT, Mumbai 5. Guard file. BY ORDER,