The Ahmedabad Bench of Income Tax Appellate Tribunal ( ITAT ) remanded the matter to the Commissioner of Income Tax Appeals [CIT(A)] after finding that the appeal was dismissed ex-parte against the addition of Rs.11 lakh as unexplained income.
Faridabanu Shaikh,appellant-assessee,filed her income tax return for AY 2017-18 on 23/09/2013, reporting an income of Rs.1,78,110/- from a milk selling business. Her case was selected for limited scrutiny due to large cash deposits during the demonetization period, which were inconsistent with her reported income.
The Assessing Officer (AO) issued notices under sections 143(2) and 142(1), to which the assessee responded by submitting the required details.Upon review, the AO found a closing cash balance of Rs.12,84,371/- as of 31/03/2016, claimed to have been accumulated over five years.
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However, the AO noted that the cash books showed no withdrawals for any expenses, casting doubt on their authenticity. As the assessee could not prove the source of these funds, the AO added Rs.11 lakh as unexplained income under section 69A of the Act.
Aggrieved by the order, the assessee appealed to the CIT(A), which subsequently dismissed the appeal. The assessee then appealed before the tribunal.
The two member bench comprising Dr.BRR Kumar(Vice President) and Suchitra Kamble(Judicial Member)heard both parties and reviewed the case. It was noted that the appeal was filed 82 days late, with no explanation from the assessee. However, the CIT(A)’s order was found to be ex-parte, and the date of service of the order, as mentioned in Form No. 36, was 13/12/2023, so the delay was accepted.
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The CIT(A)’s order also lacked proper notice, as noted in their order. Therefore, the tribunal decided to send the case back to the CIT(A) for a proper review and decision. The CIT(A) was instructed to follow the law and give the assessee a fair opportunity to be heard.
In short,the appeal filed by the assessee was partly allowed for statistical purposes.
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