TaxTMI 
TaxTMI 
TaxTMI 
2025 (6) TMI 1745
X X X X Extracts X X X X
X X X X Extracts X X X X
....of appeal: "Ground No. 01: In the facts and circumstances of the case, honorable CIT(A) erred in confirming addition of Rs. 10,08,500.00/- made by Id. AO invoking section 68. The addition made by AO and sustained by Ld. CIT(A) is arbitrary, baseless and not justified. That the Id. AO has passed the order without considering facts of the case in just & equitable manner. Ground No. 02: In the facts and circumstances of the case, CIT(A) erred in confirming the addition made by Id. AO, of all the cash deposit in the bank account without considering the facts that these cash deposits could have been made out of past savings. The Id. AO has made addition of even the small deposits made such as Rs. 1000 Rs. 2500 Rs. 2600. The Id. AO has also not considered the details provided in the income tax return filed while preparing the assessment order. He has made the additions in a mechanical and haphazard manner. Prayed that all the cash deposits cannot be the income of the appellant and therefore the additions made please be deleted. Ground No. 03: That the appellant's financial condition was not stable at the time of the appeal proceedings before the honorable CIT(A), whi....
X X X X Extracts X X X X
X X X X Extracts X X X X
....roceedings u/s.132(4) of the Act, dated 19.02.2021 had admitted that his concern, viz. M/s. Ahamad Steels was formed on the advice of Shri Mithilesh Tiwari, Proprietor of M/s. H.K Enterprises. The assessee further stated that the transactions of his concern were carried out by Shri Mithilesh Tiwari (supra). Apart from that, the assessee had also admitted that he had signed blank cheques on both sides of his bank accounts as per directions of Shri Mithilesh Tiwari (supra) who used to retain the same. Accordingly, it was the assessee's claim that all transactions done through his concern viz. M/s. Ahamad Steels were carried out at the behest of Shri Mithilesh Tiwari, a fact which was also admitted by him. The A.O observed that Shri Mithilesh Tiwari (supra) had admitted in his statement that he was involved in providing accommodation entries of bogus purchase/sale bills to various parties, viz. Jay Durga Ispat Co., Vijeet Steel Associates, Sharda Steel Sales, Earthen Ceramics Pvt. Ltd., Novatech Infrastructures, Narayan Steels, Om Ispat, Manmeet Steel, Sayyed Hifazat Ali, Prakash Industries etc. The A.O on a perusal of the bank account of the assessee i.e. A/c. No.918020067048872 main....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... an income of Rs. 2,79,550/- (sic), made an addition of Rs. 10,08,500/- u/s.68 of the Act and determined his income vide a consolidated order passed u/s.153A r.w.s. 144 of the Act, dated 29.09.2021 at Rs. 13,28,050/-. 12. Aggrieved, the assessee carried the matter in appeal before the CIT(Appeals). As the assessee despite having been afforded three opportunities had failed to participate in the proceedings before the first appellate authority, therefore, the latter holding a firm conviction that the assessee was not interested in pursuing the appeal, thus, was constrained to dismiss the same. For the sake of clarity, the observations of the CIT(Appeals) are culled out as under: "2. I have considered the facts and circumstances of the case, the observations of the AO and material available on record on the above matter. As mentioned in above paragraph of this appeal order, this office has issued several notices to the assessee to file written submission. However, neither any adjournment was sought for nor any written submissions were filed. The notices were issued through ITBA System at the e-mail ID provided in ITBA System, From the above conduct of the assessee, it is evident t....
X X X X Extracts X X X X
X X X X Extracts X X X X
....cation for indefinite period. It is the duty of the appellant to make necessary arrangements for effective representation on the appointed date. Mere filing of an appeal is not enough, rather it requires effective hearing also. I rely on the above-mentioned case laws. In view of the abovementioned case laws, the appeal filed by the appellant deserves to be dismissed. Accordingly, the ground of appeals is dismissed. 3. In the result, appeals are dismissed. 13. The assessee being aggrieved with the order of the CIT(Appeals) has carried the matter in appeal before the Tribunal. 14. I have heard the Ld. Authorized Representatives of both the parties, perused the orders of the lower authorities and the material available on record. 15. Admittedly, it is a matter of fact borne from record that the assessee despite having been intimated about the fixation of hearing of the appeal on three occasions, viz. (i) on 03.11.2022 (vide notice dated 12.10.2022); (ii) on 05.12.2023 (vide notice dated 08.11.2023); and (iii) on 20.08.2024 (vide notice dated 14.08.2024), had for the reasons best known to him failed to participate in the proceedings before the first appellate authority. I principa....
X X X X Extracts X X X X
X X X X Extracts X X X X
....her, Sec. 250(6) of the Act obliges the CIT(A) to dispose of an appeal in writing after stating the points for determination and then render a decision on each of the points which arise for consideration with reasons in support. Sec. 251(1)(a) and (h) of the Act provide that while disposing of appeal the CIT(A) would have the power to confirm, reduce, enhance or annul an assessment and/or penalty. Besides Explanation to sub-s. (2) of s. 251 of the Act also makes it clear that while considering the appeal, the CIT(A) would be entitled to consider and decide any issue arising in the proceedings before him in appeal filed for its consideration, even if the issue is not raised by the appellant in its appeal before the CIT(A). Thus once an assessee files an appeal under s. 246A of the Act, it is not open to him as of right to withdraw or not press the appeal. In fact the CIT(A) is obliged to dispose of the appeal on merits. In fact w.e.f. 1st June, 2001 the power of the CIT(A) to set aside the order of the AO and restore it to the AO for passing a fresh order stands withdrawn. Therefore, it would be noticed that the powers of the CITIA) are co-terminus with that of the AO i.e. he can do....