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Income Tax Appellate Tribunal, ‘D’ BENCH: CHENNAI
Before: SHRI SS VISWANETHRA RAVI & SHRI JAGADISH
Kulanthaivelu Elango, The Asst. Commissioner of 432, NGO Colony, Aruppukottai, Vs. Income Tax, Virudhunagar District, Circle-1, Tamil Nadu – 626 101. Virudhunagar. [PAN: AAFPE-5425-L] (अपीलाथ"/Appellant) (""यथ"/Respondent) अपीलाथG की ओर से/ Appellant by : Shri G. Baskar, Advocate IJथG की ओर से /Respondent by : Shri G. Suresh, JCIT सुनवाई की तारीख/Date of Hearing : 22.05.2024 घोषणा की तारीख /Date of Pronouncement : 22.05.2024 आदेश / O R D E R PER JAGADISH, A.M : Aforesaid appeal filed by the assessee for Assessment Year (AY) 2017-18 arises out of the order of Learned Commissioner of Income Tax, National Faceless Appeal Centre (NFAC), Delhi [hereinafter “CIT(A)”] dated 23.02.2024 in the matter of assessment framed by Ld. Assessing Officer [AO] u/s. 143(3) of the Act on 29.12.2019. :- 2 -:
The only effective ground of appeal in assessee’s appeal is against confirming Rs.31,00,000/- cash deposit in bank account as unexplained cash of SBNs during the demonetization period u/s 68 of the Act by Ld CIT(A) out of Rs.39,00,000/- addition made by the Assessing Officer .
The brief facts of the case are that the assessee has deposited Rs.39,00,000/- in the form of SBN after demonetization i.e. on 08.11.2016 as under:
Date Account No. Amount deposits 13.11.2016 10630610754 9,00,000 25.11.2016 0901201001636 3,00,000 13.11.2016 10848508277 9,00,000 12.11.2016 1249101035145 9,00,000 12.11.2016 1249201011580 9,00,000
The assessee has explained the source of cash deposit as opening cash balance of Rs.39,27,298.77/- as on 08.11.2016. However, the A.O has rejected the assessee’s explanation on the ground that the assessee books of accounts are not audited and the opening balance shown in cash book is Rs. 39,27,298.77/- as on 08.11.2016 and the cash cannot be in 77 paisa. The Ld. CIT(A) has :- 3 -: decided the appeal ex-parte allowing 20% of the cash deposit as explained source of cash deposit for the reason that the assessee is involved in the business of civil construction and some cash must be available to make expenses in cash like labour and material purchase .
The Ld. A.R has submitted that the Ld. CIT(A) has decided the appeal ex-parte and therefore, one more opportunity may be given to prove his case.
On the other hand, the Ld. D.R argued that the assessee has not made any submission, despite of sufficient opportunities provided to the assessee.
We have heard the rival contentions, and perused the materials available on record. The Ld. CIT(A) has decided the appeal ex-parte without examining the cash book, in which sufficient balance as on 08.11.2016 has been shown. The Ld. AR has argued that sufficient opportunity was not given to submit the evidences to prove his case.
After considering the facts of the case, we are of the opinion that the assessee should be given one more opportunity to submit evidence before the Ld CIT(A). Accordingly, the order of Ld. CIT(A) is set aside and the matter is remanded back to the file of CIT(A) for fresh adjudication. :- 4 -:
In the result, the appeal filed by the assessee is allowed for statistical purposes.
Order pronounced in the open Court on 22nd May, 2024. (यस यस िव"ने" रिव) (जगदीश) (Jagadish) (SS Viswanethra Ravi) लेखा लेखा सद"य लेखा लेखा सद"य सद"य /Accountant Member सद"य सद"य / Judicial Member "याियक "याियक सद"य "याियक "याियक सद"य सद"य चे"ई/Chennai, "दनांक/Dated: 22nd May, 2024. EDN/-