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Facts
The assessee filed an appeal against the order of the CIT(A) which confirmed an addition of Rs. 54.70 Lacs made by the AO for AY 2017-18. The addition represented cash deposits in bank accounts during the demonetization period. The assessee had failed to provide proper representation despite opportunities.
Held
While acknowledging the assessee's negligence in substantiating the source of cash deposits, the Tribunal granted another opportunity based on the principle of natural justice. This opportunity is conditional upon the assessee paying a cost of Rs. 5,000/-.
Key Issues
Whether the assessee should be granted a further opportunity to substantiate the source of cash deposits made during the demonetization period, subject to payment of costs.
Sections Cited
147, 144
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Income Tax Appellate Tribunal, ‘B’ BENCH, CHENNAI
Before: HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM & HON’BLE SHRI MANU KUMAR GIRI, JM
आयकर अपीलीय अिधकरण ‘बी’ "ायपीठ चे"ई म"। IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ BENCH, CHENNAI माननीय +ी मनोज कुमार अ/वाल ,लेखा सद4 एवं माननीय +ी मनु कुमार िग8र, "ाियक सद4 के सम9। BEFORE HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM AND HON’BLE SHRI MANU KUMAR GIRI, JM आयकरअपील सं./ (िनधा:रणवष: / Assessment Year: 2017-18) Shri Nagarajan Manivannan ITO बनाम/ Old No.48, New No.100, Non-Corporate Ward-10(3) V.V.Koil Street, Kosapet, Chennai. Vs. Perambur Barracks,Chennai-600 012. "थायीलेखासं./जीआइआरसं./PAN/GIR No. AHEPM-6126-A (अपीलाथ"/Appellant) : (" थ" / Respondent) अपीलाथ" कीओरसे/ Appellant by : Shri Y. Sridhar (FCA)- Ld.AR " थ"कीओरसे/Respondent by : Ms.T.M. Suganthamala (Addl.CIT)-Ld. 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 31-07-2024 in the matter of an assessment framed by Ld. Assessing Officer [AO] u/s.147 r.w.s. 144 of the Act on 16-05-2023. The sole grievance of the assessee is confirmation of addition of Rs.54.70 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. The same would be subject to payment of cost of Rs.5,000/- which shall be deposited by the assessee within 30 days from the date of receipt of this order to ‘Tamil Nadu State Legal Services Authority’ at Hon’ble High Court of Madras. The proof of the same shall be furnished by the assessee to learned AO who shall proceed for de novo assessment. The assessee is directed to substantiate its case forthwith. 3. The appeal stand allowed for statistical purposes. Order pronounced in open court on 09th December, 2024. (MANU KUMAR GIRI) (MANOJ KUMAR AGGARWAL) "ाियक सद4 / JUDICIAL MEMBER लेखा सद4 / ACCOUNTANT MEMBER चे3ई Chennai; िदनांक Dated : 09-12-2024 DS आदेशकीRितिलिपअ/ेिषत/Copy of the Order forwarded to : 1. अपीलाथ"/Appellant 2. " थ"/Respondent 3. आयकरआयु</CIT Chennai 4. िवभागीय"ितिनिध/DR 5. गाडAफाईल/GF