Case Number: ITA 5870/DEL/2019
Appellant: Kiranwati, Gautam Budh Nagar
Respondent: ITO, Ward- 2(1), Noida
Assessment Year: 2009-10
Case Filed On: 2019-07-05
Order Type: Final Tribunal Order
Date of Order: 2021-10-11
Pronounced On: 2021-10-11
Summary:
The case of Kiranwati vs ITO, Noida revolves around the unexplained cash deposits in the bank account of the appellant during the assessment year 2009-10. The appellant, Smt. Kiranwati, residing in Gautam Budh Nagar, filed an appeal against the order of the CIT(A)-I, Noida dated 31.12.2018. The primary contention was the addition made by the Assessing Officer (AO) on account of cash deposits amounting to Rs. 14,00,000, which the appellant claimed were received from the sale of agricultural land by her husband.
Background:
The appellant’s husband sold agricultural land on 30.01.2009 for Rs. 19 Lakhs. As he did not maintain a bank account, the sale consideration was received in cash and subsequently deposited into the appellant’s bank account. The appellant, being illiterate and unfamiliar with tax laws, contended that the cash deposits were not from any undisclosed sources but were explained adequately under Section 68 of the Income Tax Act, 1961.
Grounds of Appeal:
Tribunal Findings:
The tribunal found that the CIT(A) dismissed the appeal on technical grounds without addressing the merits of the case. The CIT(A) observed that the appeal could not be admitted due to non-compliance with mandatory provisions of Sections 249(4)(a) and 249(4)(b) of the Income Tax Act, 1961. However, it was also noted that the AO did not assume proper jurisdiction as no notice under Section 143(2) was issued and served upon the appellant.
The tribunal acknowledged that the AO’s failure to issue a notice under Section 143(2) invalidated the assessment order. Consequently, the tribunal quashed the assessment order, rendering other grounds on merit academic in nature.
Conclusion:
In conclusion, the appeal of Smt. Kiranwati was allowed, and the assessment order was quashed due to the non-issuance of the mandatory notice under Section 143(2). The tribunal’s decision underscores the importance of following procedural requirements in tax assessments.
Order Pronouncement:
Order was pronounced in the open court on 11.10.2021.
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(R.K. PANDA)
ACCOUNTANT MEMBER
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(KUL BHARAT)
JUDICIAL MEMBER
Kiranwati vs ITO, Noida – Case Filed Due to Unexplained Cash Deposits
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