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Facts
The assessee's appeal for AY 2017-18 arises from the CIT(A)'s order confirming an addition of Rs. 42.72 Lacs representing cash deposits during demonetization. The assessee failed to provide representations despite multiple hearing opportunities.
Held
While acknowledging the assessee's negligence in substantiating the source of cash deposits, the Tribunal, considering the principle of natural justice, granted another opportunity to the assessee.
Key Issues
Whether the assessee should be granted another opportunity to substantiate the source of cash deposits, and if so, the appropriate course of action for reassessment.
Sections Cited
147, 144, 144B
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, ‘B’ BENCH, CHENNAI
Before: HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM & HON’BLE SHRI MANU KUMAR GIRI, JM
(िनधा:रणवष: / Assessment Year: 2017-18) M/s. Gangalam Oil and Foods Pvt. Ltd. ITO बनाम/ B 209 ETA Star Jasmine Court, Corporate Ward-2(2) 32 Mount Poonamallee Trunk Road, Chennai. Vs. Kattupakkam, Chennai-600 056. �थायीलेखासं./जीआइआरसं./PAN/GIR No. AAFCG-7037-B (अपीलाथ�/Appellant) : (� थ� / Respondent) अपीलाथ� कीओरसे/ Appellant by : Shri S. Seetharaman (CA)- Ld.AR � थ�कीओरसे/Respondent by : Ms.T.M. Suganthamala (Addl.CIT)-Ld. Sr. DR सुनवाई की तारीख/Date of Hearing : 09-12-2024 घोषणा की तारीख /Date of Pronouncement : 09-12-2024 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member)
Aforesaid appeal by assessee for Assessment Year (AY) 2017-18 arises out of the order of learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] dated 22-07-2024 in the matter of an assessment framed by Ld. Assessing Officer [AO] u/s.147 r.w.s. 144 r.w.s 144B of the Act on 10- 03-2022. The sole grievance of the assessee is confirmation of addition of Rs.42.72 Lacs which represent cash deposits in the bank accounts during demonetization period. The Ld. CIT(A) confirmed the same since the assessee failed to make any representation therein despite being provided with various opportunities of hearing. Aggrieved, the assessee is in further appeal before us. The Ld. AR has pleaded for another opportunity to the assessee to substantiate the same which has been opposed by Ld. Sr. DR.
Though the assessee has remained negligent in substantiating the source of cash deposit, however, accepting the plea of Ld. AR and keeping in mind the principle of natural justice, we deem it fit to grant another opportunity to the assessee to substantiate its case before lower authorities. Accordingly, the assessment is restored back to the file of Ld. AO for de novo assessment with a direction to the assessee to substantiate its case.
The appeal stand allowed for statistical purposes. Order pronounced in open court on 09th December, 2024.