This case involves the appellant, Suman Sharma, New Delhi, contesting the addition of Rs. 15 lakhs under Section 68 of the Income Tax Act, 1961, for the assessment year 2010-11. The case was filed on February 25, 2019, and the final tribunal order was pronounced on August 8, 2019.
The proceedings were conducted at the Income Tax Appellate Tribunal (ITAT), Delhi ‘SMC’ Bench, before Shri R.K. Panda, Accountant Member. This judgment addresses the issues surrounding the addition of Rs. 15 lakhs due to unexplained cash deposits.
Suman Sharma
RZF-232, Raj Nagar-II, Palam Colony, Delhi
PAN: BIZPS3183C
Income Tax Officer, Ward-62(3), New Delhi
The appellant was represented by Shri V Raja Kumar, Advocate. The respondent was represented by Shri S.L. Anuragi, Sr. DR.
This appeal was filed by the assessee against the ex-parte order dated January 30, 2019, of the CIT(Appeals)-38, New Delhi, relating to the assessment year 2010-11. The assessee challenged the CIT(A)’s order, which dismissed the appeal and sustained the addition of Rs. 15 lakhs made by the Assessing Officer (AO) under Section 68 of the Income Tax Act.
The primary grievance was the addition of Rs. 15 lakhs under Section 68 of the Act, which was attributed to unexplained cash deposits in the assessee’s bank account. The AO issued a notice under Section 148 of the Act on March 30, 2017, and the assessee filed a return of income on July 28, 2017, declaring a total income of Rs. 10,013. The AO completed the assessment under Sections 147 and 143(3), determining the total income at Rs. 15,10,010, adding Rs. 15 lakhs under Section 68 due to unexplained cash gifts from the assessee’s father-in-law, Shri Brahm Dutt Sharma, and husband, Shri Manish Dutt Sharma, as well as the absence of evidence regarding the sale of agricultural produce.
The CIT(A) dismissed the appeal due to non-appearance and non-compliance by the assessee, sustaining the addition made by the AO. The assessee’s counsel argued that the CIT(A) should have given an opportunity to substantiate the case, especially since the appeal was not decided on merit.
After considering the rival arguments and reviewing the orders of the AO and the CIT(A), the tribunal found that the CIT(A) had dismissed the appeal due to non-appearance but did not decide the appeal on merit. The tribunal emphasized that the CIT(A) is required by law to decide the appeal on merit. In the interest of justice, the tribunal deemed it proper to restore the issue to the CIT(A) with directions to grant a final opportunity to the assessee to substantiate her case and decide the issue based on facts and law.
The tribunal directed the assessee to appear before the CIT(A) and present the necessary evidence. The CIT(A) was instructed to pass an appropriate order as per law if the assessee failed to appear.
The tribunal allowed the appeal for statistical purposes, underscoring the importance of due process and the opportunity for the assessee to present the case on merit.
Order pronounced in the open Court on August 8, 2019.
Sd/-
(R.K. Panda)
Accountant Member
Dated: August 8, 2019
Copy forwarded to:
1. Appellant
2. Respondent
3. CIT
4. CIT(Appeals)
5. DR, ITAT
Asst. Registrar, ITAT, New Delhi
Dates:
1. Date of dictation: August 6, 2019
2. Date on which the typed draft is placed before the dictating Member: August 8, 2019
3. Date on which the typed draft is placed before the other Member: August 8, 2019
4. Date on which the approved draft comes to the Sr. PS/PS: August 8, 2019
5. Date on which the fair order is placed before the Dictating Member for pronouncement: August 8, 2019
6. Date on which the fair order comes back to the Sr. PS/PS: August 8, 2019
7. Date on which the final order is uploaded on the website of ITAT: August 8, 2019
8. Date on which the file goes to the Bench Clerk: August 8, 2019
9. Date on which the file goes to the Head Clerk: August 8, 2019
10. Date on which the file goes to the Assistant Registrar for signature on the order: August 8, 2019
11. Date of dispatch of the Order: August 8, 2019
Suman Sharma vs. ITO, Ward-62(3), New Delhi – Cash Deposit Case for Assessment Year 2010-11
Manage the increasing number of hearings effortlessly by leveraging the legal AI revolution We are India's Leading revolutionary AI-powered legal platform where you can get enough insights into top cases and judgements.
Research Platform