KIRAN ENTERPRISES ,TUMAKURU vs. INCOME TAX OFFICER, WARD-1 & TPS, , TUMKUR
What did the Tribunal hold?
The Tribunal, while noting the assessee's non-compliance, decided to remand the case back to the CIT(A) for a fresh adjudication. This was done to ensure a just decision and for the ends of justice, as the issue was not adjudicated in its true spirit.
What were the facts?
The Assessing Officer made an addition of Rs. 1,25,00,000/- under Section 68 for unexplained cash deposits. The assessee failed to appear before the CIT(A) despite notices, leading to the dismissal of their appeal and affirmation of an addition of Rs. 1,15,00,000/-.
What were the issues?
Whether the addition made by the AO for unexplained cash deposits was justified, and whether the CIT(A) erred in dismissing the appeal without a proper adjudication due to the assessee's non-compliance.
Which sections of the Income-tax Act were involved?
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “B” BENCH, BENGALURU BENCH
Before: SHRI N. K. CHOUDHRY, JM & SHRI LAXMI PRASAD SAHU, AM
This appeal has been preferred by the Assessee against the order dated 22.12.2023, impugned herein, passed by National Faceless Appeal Centre (NFAC), Delhi/Ld. Commissioner of Income Tax (Appeals) [in short ‘Ld. Commissioner’] under section 143(3) of the Income Tax Act 1961 (in short ‘the Act’) for the Assessment Year (in short ‘AY’) 2017-18.
M/s. Kiran Enterprises 2. In the instant case, the Assessing Officer (in short ‘AO’) vide assessment order dated 9.12.2019 u/s. 143(3) of the Act, made the addition of Rs.1,25,00,000/- u/s. 68 of the Act as un-explained cash deposits made with the bank account maintained by the Assessee with TMC Bank. The Assessee being aggrieved challenged the said addition before the ld. Commissioner, who by issuing notices for the dates of hearing on 21.11.2023 and 6.12.2023 granted the opportunities to the Assessee, however, the Assessee failed to avail the same and therefore in the constrained circumstances, the ld. Commissioner on the basis of the record available, disposed of the appeal on merits and ultimately by dismissing the appeal of the Assessee, affirmed the addition of Rs.1,15,00,000/-. The Assessee being aggrieved is in appeal before us.
We by considering the peculiar facts and circumstances of the case observe that though the Assessee do not deserve any leniency, as inspite of sending notices and opportunities of hearings, made no compliance and therefore created constrained circumstances for passing the impugned order as ex-parte. However, as the issue in this case has not been adjudicated in its true spirit and right perspective, due to non-filling of proper submission/documents by the Assessee and it is the mandate of the Article 265 of the Constitution of India that no tax shall be levied or collected except by authority of law and therefore for the just decision of the case and ends of justice, we are inclined to remand the instant case to the file of the ld. Commissioner for decision afresh. We are also inclined to direct the Assessee to comply with the notices and co-operate with the appellate proceedings and file the relevant submissions/documents as would be essential/required before the ld. Commissioner and in case of further default, the Assessee shall not be entitled for any leniency.
M/s. Kiran Enterprises Thus in the aforesaid terms, the case is remanded to the file of the Ld. Commissioner accordingly.
In the result appeal filed by the Assessee stands allowed for the statistical purposes.
More judgments on Section 68
- ACIT Central Bilaspur, Bilaspur vs Arun Kumar Agrawal, SaktiITSSA 26/RPR/2025[2018-19]Status: Disposed21 Oct 2026AY 2018-19
- Neo Incorporation, Rajkot vs DCIT Circle- 1(2), RajkotITA 471/RJT/2026[2012-2013]Status: Disposed21 Oct 2026AY 2012-2013
- Bliss Dealtrade Private Limited, Kolkata vs Income Tax Officer - Ward 9(2) Kolkata…ITA 208/KOL/2026[2012-13]Status: Disposed21 Oct 2026AY 2012-13
- Hemal Paresh Madeka, Rajkot vs Asst.Commissioner of Income Tax…ITA 955/RJT/2026[2020-21]Status: Disposed19 Oct 2026AY 2020-21
- Ajaybhai Dineshbhai Bagdai, Near Central… vs The Income Tax Officer, Ward-1(2)(1), New…ITA 74/RJT/2026[2013-14]Status: Disposed19 Oct 2026AY 2013-14
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