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Facts
The assessee's appeal for assessment year 2017-18 arose against an order of the National Faceless Appeal Centre (NFAC) Delhi. The case was proceeded ex-parte as the assessee did not appear. The AO made additions based on cash deposits during demonetization and estimation of other deposits.
Held
The Tribunal noted that the CIT(A)/NFAC's order did not frame any points of determination nor provide a detailed discussion as required. Therefore, the Tribunal deemed it fit to restore the appeal back to the CIT(A)/NFAC for fresh adjudication.
Key Issues
Whether the lower authorities correctly passed ex-parte orders and made additions without proper investigation and opportunity to be heard.
Sections Cited
144, 144B, 68, 250(b), 69A
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, MUMBAI BENCH “H (SMC
Before: SHRI SATBEER SINGH GODARA & SHRI OMKARESHWAR CHIDARA
IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCH “H (SMC)”, MUMBAI
BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER AND SHRI OMKARESHWAR CHIDARA, ACCOUNTANT MEMBER
ITA No.1905/M/2024 Assessment Year: 2017-18
Shri Dipak Budharam Income Tax Officer- Sharma, 31(1)(4), Room No.145 G Ward Kautilya Bhavan-C-41 Dindoshi Muncipal to 43- Vasahat, JA Vaidya Marg, Vs. G-block, Goregaon East, Bandra Kurla Mumbai, Complex, Maharashtra-400065 Bandra (E), PAN: DTAPS8038C Mumbai, Maharashtra-400051 (Appellant) (Respondent)
Present for: Assessee by : None Revenue by : Ms. Dhivya Ruth J., Sr. D.R.
Date of Hearing : 18 . 07 . 2024 Date of Pronouncement : 24 . 07 . 2024
O R D E R Per : Satbeer Singh Godara, Judicial Member: This assessee’s appeal for assessment year 2017-18
arises against the National Faceless Appeal Centre(NFAC)
Delhi’s DIN & order No.ITBA/NFAC/S/250/2023-
24/1047330554(1) dated 15.11.2022, in proceedings under
section 144 of the Income Tax Act, 1961 (in short ‘the Act’).
2 ITA No.1905/M/2024 Shri Dipak Budharam Sharma
Case called twice. None appears at assessee’s behest. It
is accordingly proceeded ex-parte.
The assessee pleads the following substantive grounds in
the instant appeal:
“1. The Id.AO erred in passing order u/s 144 of the Act without R following the SOP for section 144 and 144B of the Act;
The Id. AO erred in passing the assessment order without service- of notice thereby violated the principle of natural justice in passing ex-parte order.
The Id.AO erred in making addition of Rs 4,88,500/- in Rs.1000 and 500 denomination without doing any exercise at his own.
The Id.AO erred in not investigating the issue as per the provisions of section 68 of the Act.
The fault at the end of Authorized Representative cannot be penalized the assessee as the assessee has engaged the AR and believed and relied upon the AR in good faith.
6 The Id.AO erred in making the addition on the information of CIBIL without confronting it to the assessee;
3 ITA No.1905/M/2024 Shri Dipak Budharam Sharma 7. The Id.AO erred in making addition @ the rate of 8% of the total deposits without providing opportunity to submits the say on the issue.
The Id.AO erred in making addition when the assessee was not maintaining any account books, bank statement could not be constructed to be a books of account maintained by him. Merely on basis of information that assessee made a "cash deposit" in his saving bank account, no addition could be made as unexplained cash credit.
The Id.CIT(A) erred in passing ex-parte order without verifying the facts that the notices sent to the assessee served or not;
The Id.CIT(A) erred in issuing the notices during the COVID- 19 period from 20.3.2020 to 20.3.2022 when as per the Prime Minister's order there was complete Lock- down and the family was out of Mumbai;
The Id.CIT(A) is also erred in passing an ex-parte order without giving opportunity of being heard despite the letter of assessee dated 20.11.2019 was available on record praying that the assessee wants to place on record bank statement and confirmation letter from the Dealor; thereby passed cryptic order.
The Ld. CIT(A) erred in upholding the action of the Id.AO without passing the reasoned order.”
4 ITA No.1905/M/2024 Shri Dipak Budharam Sharma 4. Learned departmental representative vehemently argued
during he course of hearing in support of both the learned
lower authorities’ findings that they have rightly made section
69A addition of Rs.4,88,500/- representing cash deposits
during demonetization period followed by estimation of other
similar deposits in the relevant previous year which have been
assessed as business turnover @ 8%; resulting in addition of
Rs.8,41,230/- in section 144 assessment dated 19.10.2019 as
upheld in the lower appellate discussion. Faced with this
situation, we invited the Revenue’s apt attention to the learned
CIT(A)/NFAC’s lower appellate discussion in para 4, pages 2 to
3 wherein neither it had framed any points of determination
nor we find any detailed discussion thereupon, as
contemplated u/s 250(b) of the Act. We accordingly deem it as
a fit case in the larger interest of justice to restore the
assessee’s instant appeal back to the learned CIT(A)/NFAC for
its afresh appropriate adjudication as per law preferably within
three effective opportunities of hearing. It is made clear that
all this subject to a rider that the assessee shall plead and
prove all the relevant facts by filing his supportive evidence, at
his own risk and responsibility. Ordered accordingly.
5 ITA No.1905/M/2024 Shri Dipak Budharam Sharma
Delay of 153 days is condoned as per assessee’s solemn
averments in condonation petition dated 15.04.2024 and going
by Collector, Land Acquisition vs., MST Katiji [1987] 167 ITR
471 (SC) having settled the law long back with all such
technical aspects which make way for the cause of substantial
justice.
This assessee’s appeal is allowed for statistical purposes
in above terms.
Order pronounced in the open court on 24.07.2024.
Sd/- Sd/- (OMKARESHWAR CHIDARA) (SATBEER SINGH GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER
* Kishore, Sr. P.S.
Copy to: The Appellant The Respondent The CIT, Concerned, Mumbai The DR Concerned Bench
//True Copy//
By Order
Dy/Asstt. Registrar, ITAT, Mumbai.