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Facts
The assessee, engaged in trading and manufacturing, deposited Rs. 2.18 crores in cash across five bank accounts during FY 2015-16. After reassessment proceedings, the AO estimated business profits at 10% of the gross turnover due to unreconciled sales figures and lack of proper books. The CIT(A) dismissed the appeal due to non-compliance by the assessee.
Held
The Tribunal condoned a minor delay in filing the appeal and, noting the assessee's repeated non-compliance, decided to remand the matter back to the CIT(A). This allows the assessee one final opportunity to present documentary evidence and books to substantiate bank deposits and sales figures.
Key Issues
The key legal issues are the condonation of delay in filing the appeal, the reconciliation of sales figures, the substantiation of cash deposits, and the assessee's non-compliance during assessment and first appellate proceedings.
Sections Cited
Section 250, Section 147, Section 144B, Section 148
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, AMRITSAR BENCH, AMRITSAR.
Before: SH. MANOJ KUMAR AGGARWAL & SH. UDAYAN DASGUPTA
ORDER Per: Udayan Dasgupta, J.M.: This appeal is filed by the assessee against the order of ld. CIT (A), NFAC, Delhi, passed u/s 250 of the Act, 1961 vide order dated 23.07.2024 which has emanated from the order of AO, (NWR-W- (88) (1), passed u/s 147 r.w.s. 144B of the Act, vide order dated 15.05.2023.
There is no appearance by the assessee or the counsel on repeated calls neither physically nor in virtual mode. An application for adjournment has been filed on the 2 Assessment Year: 2016-17 ground of unavailability of his counsel. Considering the grounds of appeal and the issues involved we proceed to dispose of the appeal after hearing the Ld. DR.
3. Condonation of delay: As pointed out by the registry this appeal is belatedly filed by 58 ( fifty eight days), counted from the date of appellate order dated 23/07/2024 , which according to the assessee (as per the noting in form 36 ) has been served on him on 20th October, 2024 and this appeal is filed before the tribunal on 18th November, 2024, which as per calculation of the assessee is within time.
4. Considering the minor delay and the remote location of the assessee coupled with internet disturbance in the valley, we condone the delay in filing this appeal and admit the same to be heard on merits.
5. Brief facts are that the assessee is engaged in trading and manufacturing business and has deposited cash during the FY 2015-16 totalling Rs.2.18 crores (consisting of five separate bank A/c with J and K Bank ) and in absence of any regular return on record proceedings initiated u/s 148 ( as per new procedure ) dated 23/07/2022, has resulted in submission of a return u/s 148 declaring a total SALES of Rs. 1.51 crores in ITR, which was accompanied by financials where the trading A/c for the year disclosed a SALE of Rs. 2.95 crores.
6. In course of assessment proceedings, the said difference in SALES as per ITR vis a vis SALES as per Trading financials, could not be reconciled in spite of repeated opportunities, and in absence of proper books of accounts supported by 3 Assessment Year: 2016-17 documentary evidences, the assessment was completed on an assessed income of Rs.29.51 lakhs (business profits determined on estimation @ 10% of gross turnover).
The matter carried in first appeal has been dismissed by the Ld. CIT (A) in absence of any response or submissions to notice issued on four separate occasions (as evident from para – 4.1 of the appellate order), even though notices has been duly served on the assessee but without adjudication of the grounds of appeal on merits, in absence of any documentary evidences being available before him.
8. It is seen from order sheet entries that the counsel of the assessee Mr. Bashir Ahmad Lone CA, has appeared earlier before the tribunal on 22/04/2025, praying for adjournment, which was granted, but even after nearly ten months neither any paper book nor any submission has been filed before us. This attitude of the assessee (and his counsel) indicates intentional negligence and abuse of legal process.
9. The Ld. DR relied on the order of the Ld. CIT (A) and prayed for upholding the appellate order.
10. However, in the interest of justice we remand the matter back to the Ld. CIT(A) to allow the assessee one more opportunity to produce supporting documentary evidences along with books, to prove his case and establish his source of bank deposits and we direct the assessee to furnish all submissions in support of his grounds of appeal contained in form 35 and to fully cooperate in appellate proceedings.
The assessee will be allowed reasonable opportunity of being heard with notice to be issued in email cabashir@gmail.com 12. We have not expressed any opinion on merits. 13. In the result the appeal of the assessee is allowed for statistical purpose.
Order pronounced on 26.02.2026 under Rule 34(4) of the Income Tax Appellate Tribunal Rules 1963.