TaxTMI 
TaxTMI 
2025 (6) TMI 1542
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....he Act on account of non-filing of return of income by the assessee, for the impugned assessment year. Since the facts and issues for consideration are common for all the appeals before us, all the appeals filed by the assessee are being disposed of by way of a common order. First we take up the assessee's appeal against the quantum addition confirmed by Ld. CIT(A) (ITA No. 554/Ahd/2025 for A.Y. 2016-17) 2. The assessee has taken the following Grounds of Appeal: ITA No. 554/Ahd/2025(A.Y. 2016-17) "1. The Ld. AO has erred in law in issuing notice U/s. 148 of the Act. 2. The Ld. CIT(A) and the Ld. AO erred in law and in fact in making addition of Rs. 8,55,18,650/- U/s. 69A of the Act. 3. The Ld. CIT(A) and the Ld. AO have erred in law and in fact in confirming the levy of penalty U/s. 271F of the Act. 4. The Ld. CIT(A) and the Ld. AO have erred in law and in fact in confirming the levy of penalty U/s. 271(1)(c) of the Act. 5. The appellant reserves the right to add, alter, amend, modify, delete all or any of the grounds of appeal either partially or completely." 3. The brief facts of the case are that based on information....
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.... 69A of the Income-tax Act, 1961 as unexplained money. The section 69A of the Income-tax Act, 1961 state as follows: ..... 3.12. The assessee has not declared his true income and has not paid taxes due thereon. The assessee has not responded to notices u/s. 142(1) and show cause notice issued during E-assessment proceedings. The assessee failed to give any explanation about the nature and source of total cash deposits; hence, the cash credits/investments amounting to Rs 8,55,18,650/-appearing in account of the assessee in M/s. Shri Renuka Mata Multi State Urban Co-operative Credit Society Ltd in financial year 2015-16 relevant to assessment year 2016-17 remained unexplained. 3.13 Therefore, in absence of any submission and documentary evidences, the total amount of Rs. 8,55,18,650/- is deemed as unexplained money u/s. 69A of the Income Tax Act, 1961 and added to the Total Income of the assessee. The tax on above mentioned income is chargeable u/s 115BBE of the Income Tax Act, 1961." 5. In appeal, the assessee reiterated that his PAN was misused in opening the bank account in M/s. Renuka Mata Bank and that the assessee had also filed a police complaint ....
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.... stating that the said deposits were not made by the assessee and that itself shows that the assessee had not opened this bank account. 7. In response, Ld. D.R. placed reliance on the observations made by the Assessing Officer and Ld. CIT(A), in their respective orders. 8. On going through the facts of the instant case, we observe that apparently, there was an evident lack of enquiry made by the Tax Authorities, while concluding the assessment. When the notice of hearing was issued by the Assessing Officer, the assessee had promptly submitted that he was a minor (though during the course of hearing before us the Counsel for the assessee submitted that the assessee had completed 18 years of age) and that the assessee did not have any means whatsoever to deposit such a huge amount of money in M/s. Renuka Mata Multi State Urban Cooperative Credit Society Ltd. The assessee had specifically submitted that the aforesaid bank account had not been the opened by the assessee and had also furnished a copy of the police complaint to support his argument that this account had been opened by misusing his PAN details etc. However, despite these specific averment by the assessee, the Depart....
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....to make the aforesaid deposits in the bank account. 9. Accordingly, in the interest of justice, and given the evident lack of inquiry in the matter at all stages of proceedings by the concerned Tax Authorities, the matter is hereby restored to the file of Assessing Officer for de-novo consideration. The Assessing Officer is directed to call for necessary details from the concerned Branch Manager and carried out a detailed inquiry to ascertain whether it was the assessee who had opened this bank account and also responsible for making deposits in such bank account. 10. In the result, the appeal of the assessee is allowed for statistical purposes. Now we shall come to assessee's appeal (ITA No. 555/Ahd/2025 for A.Y. 2016-17) 11. The assessee has taken the following grounds of appeal: ITA No. 555/Ahd/2025 (A.Y. 2016-17) "1. The Ld. Faceless Assessing Officer, National Faceless Assessment Center (the Ld. FAO) has erred in law and in fact in initiating penalty proceedings U/s. 271(1)(c) of the Act. 2. The Ld. CIT(A) has erred in law and in fact in confirming the levy of penalty by the Ld. AO. 3. The Appellant reserves the right to add, alt....