SHRI KADU SATWAJI GAIKWAD,AURANGABAD vs. ITO, WARD-1(4), AURANGABAD, AURANGABAD

This appeal filed by the assessee is directed against the order dated 22.02.2024 passed by Ld Addl./JCIT(A), Agra for the assessment year 2011-12.

The Learned Commissioner of Appeal ADDL/JICT(A)AGRA wrongly concluded that the appellant was not interested in prosecuting the appeal. However, after filing this appeal, the appellant filed a written reply and supporting documents before the Commissioner of Income Tax Appeal Aurangabad- 1 on 5/12/2019. After perusal of these documents, the Appellate Authority sought a cash flow statement, which the asseseee had submitted. After that, the appellate proceedings were almost over, and only the final order awaited. Meanwhile, CBDT introduced a new faceless appeal policy, and CBDT transferred all income tax appeals to the National Faceless Appeal Center in New Delhi for further proceeding, which was adjudicated by the learned Commissioner of Appeal ADDL/JICT(A)AGRA. The learned Commissioner of Appeal ADDL/JICT(A) AGRA has not mentioned anywhere in his order that the action taken by the Commissioner of Appeal Aurangabad previously in the appeal. It proves that the learned Commissioner of Appeal ADDL/JICT(A) AGRA passed the appeal order without verifying the action taken by the Commissioner of Income Tax Appeal Aurangabad-1 in this appeal, which is not justifiable and ought to have been verified.

The assessing officer of Ward 1(4) failed to verify the facts and circumstances of the case properly. They wrongly concluded that the assessee had no evidence or explanation to prove the genuineness of a cash deposit of Rs 10,40,000/. However, in reality, the assessee had produced all necessary documents to prove the genuineness of such a cash deposit, which ought to be verified. 4. That the Ld. Commissioner of Appeal ADDL/JICT(A)AGRA, has erred in law in upholding the addition of Rs. 10,40,000/-. The addition confirmed is illegal and bad in law. 5. The tax amount and interest levied under all sections are not warranted and may be quashed and set aside. 6. The appellant craves leave to add, amend, alter, or delete any grounds when the necessity arises till the final disposal of the appeal. 7. Other grounds will be argued at the time of the final hearing.” 3. The facts, in brief, are that the assessee is an individual earned income from salary and agricultural income. On the basis of information that the assessee had deposited Rs.10,40,000/- in his savings bank account, notice u/s 148 of the IT Act was issued on 20-03-2018, after obtaining prior approval of appropriate authority. In response, the assessee furnished return of income on 04-10-2018 declaring income of Rs.97,700/-. The Assessing Officer issued statutory notices u/s 142(1) & 143(2) of the IT Act along-with questioner and called information relating to the case. After considering the reply of the assessee, the Assessing Officer being unsatisfied, completed the assessment u/s 143(3) r.w.s. 147 of the IT Act vide order dated 12-12-2018 determining total income of the assessee at Rs.11,37,700/- by making addition of Rs.10,40,000/- to the income returned by the assessee.

Being aggrieved with the above action of the Assessing Officer, an appeal was preferred before ld. CIT(A), who vide impugned order without going into merits of the case dismissed the appeal of the assessee for want of prosecution.

Being aggrieved with the decision of ld. Addl./JCIT(A), Agra the appellant is in appeal before us.

Ld. AR submitted before us that the ex-parte order passed by the ld. Addl./JCIT(A), Agra is unwarranted illegal & bad in law. It was further submitted by LD AR of the assessee that prior to the appeal was transferred to the NFAC & thereafter to ld. Addl./JCIT(A) Agra, notices were issued by ld. CIT(A), Aurangabad and the assessee, in compliance of the said notices, 05.12.2019 along-with supporting documents before the ld. CIT(A), Aurangabad. After perusal of those documents, ld. CIT(A), Aurangabad sought a cash flow statement from the assessee which was also submitted by the assessee. Thereafter, the assessee was expecting final order from ld. CIT(A), Aurangabad but in the mean time the Faceless Appeal Scheme was introduced by the CBDT and the appeal was transferred from ld. CIT(A), Aurangabad to NFAC & thereafter to ld. Addl./JCIT(A), Agra. It was further submitted by the counsel of the assessee that it is apparent from the order of ld. Addl./JCIT(A) Agra, that the ex-parte appellate order was passed by him without considering the reply which was already furnished by the assessee on 05-12-2019. It was, therefore, prayed before the Bench that the assessee was under-impression that he has already furnished the written reply along-with supporting documents & therefore, he was not required to submit all those documents again but unfortunately ld. Addl./JCIT(A), Agra did not consider all those submissions/documents and treated the assessee absent and passed the order ex-parte. Therefore, it was prayed before the Bench to set-aside the impugned ex-parte order passed by ld. Addl./JCIT(A), Agra and further requested to remand the matter back to the file of LD Addl./JCIT(A), Agra to decide the appeal afresh on the merits