Case Number: ITA 669/DEL/2019
Appellant: Manoj Kumar Tiwari S/o Murari Lal, Raajeev Gandhi Colony, Panipat
Respondent: ITO, Ward-2 Panipat
Assessment Year: 2010-11
Result: Appeal Allowed for Statistical Purposes
Case Filed On: 2019-01-30
Order Type: Final Tribunal Order
Date of Order: 2019-07-09
Pronounced On: 2019-07-09
Manoj Kumar Tiwari, an individual residing in Panipat, filed an appeal against the assessment order for the assessment year 2010-11. The appeal challenged the exparte order of the CIT(A)-8, Karnal, which upheld the reassessment proceedings and confirmed an addition of Rs.15,68,015/- made by the Assessing Officer (AO) based on cash deposits in Tiwari’s savings bank account.
The case originated from an AIR (Annual Information Return) report indicating that Tiwari had deposited Rs.15,68,015/- in cash into his bank account. Based on this information, the AO initiated reassessment proceedings under Section 147 of the Income Tax Act by recording reasons and issuing a notice under Section 148.
Despite the issuance of notice under Section 148 and a subsequent notice under Section 142(1), Tiwari did not respond or comply. As a result, the AO completed the assessment under Section 144, determining Tiwari’s income at Rs.15,68,015/- due to non-compliance and absence of explanations for the cash deposits.
Tiwari’s non-appearance continued at the appellate level before the CIT(A). Despite multiple opportunities, Tiwari failed to present his case, leading the CIT(A) to dismiss the appeal exparte due to non-prosecution.
The Income Tax Appellate Tribunal (ITAT), with Sh. R. K. Panda (Accountant Member) presiding, heard the case on 04.07.2019. Noting the repeated non-appearance and non-compliance by Tiwari, the tribunal decided to proceed with the available records and the arguments presented by the Senior DR, Shri S. L. Anuragi.
The tribunal observed that while Tiwari had not appeared before the CIT(A), the latter had also not adjudicated the appeal on its merits. The ITAT emphasized the importance of ensuring justice and providing the appellant one more opportunity to present his case.
In the interest of justice, the ITAT set aside the exparte order of the CIT(A) and remanded the case back to the CIT(A) for a fresh hearing. The tribunal directed the CIT(A) to grant Tiwari another opportunity to present his case and decide the issues based on facts and law.
Tiwari was also instructed to appear before the CIT(A) and cooperate in the early disposal of the appeal. The tribunal held that if Tiwari failed to comply again, the CIT(A) would be at liberty to pass an appropriate order as per the law.
Thus, the grounds raised by Tiwari were allowed for statistical purposes, giving him another chance to explain the cash deposits and reassessment proceedings.
Source: Income Tax Appellate Tribunal, Delhi Benches ‘SMC’, New Delhi
Disclaimer: This article provides an overview of the case and is not a substitute for professional legal advice. For detailed information, readers are encouraged to refer to the official case documents and consult with a qualified legal professional.
Manoj Kumar Tiwari vs ITO: Reassessment and Cash Deposits for AY 2010-11
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