Bakulbhai Durlabhbhai Domadiya Vs ITO (ITAT Surat)
ITAT Surat held that due to non-cooperation on the part of the assessee ex-parte order was passed. Accordingly, matter remitted back, however, cost of Rs. 20,000 imposed for non-cooperation.
Facts- During assessment, AO observed that assessee deposited cash of Rs.10,00,000/- in ICICI Bank Ltd., Rs.22,00,000/- in Varachha Co-Op. Bank Ltd., and Rs.23,10,000/- in Varishtha Co-Op. Bank Ltd., totaling to Rs.55,10,000/-. The assessee had not submitted any explanation in respect of total cash deposit of Rs.55,10,000/- in his bank accounts. As the assessee had not submitted his explanation with respect to cash deposit made by him during the demonetization period, the same was treated as unexplained money u/s 69A of the Act. Due to failure of assessee to establish creditworthiness of lenders and genuineness of transactions, AO also made addition of Rs.3,71,36,034/- on account of unexplained unsecured loan u/s 68 of the Act. The AO also disallowed interest paid on unsecured loans of Rs.10,82,830/- and taxed total income @ 60% u/s 115BBE of the Act.
CIT(A) dismissed the appeal. Being aggrieved, the present appeal is filed.
Conclusion- Held that it is an undisputed fact that the assessee has been totally no cooperative to the statutory notices and the show cause notice issued to him by the AO and the CIT(A). There were total cash deposits of Rs.55,10,000/- in different bank accounts of assessee maintained with ICICI and Varishtha Co-op. Bank Ltd., Surat. We also find that the CIT(A) had also issued five notices which are at para 4 of the appellate order. Considering all these facts, we are of the view that the assessee was negligent and non-cooperative before the lower authorities. We are of the view that the principles of natural justice would call for giving another opportunity of hearing to the assessee. Accordingly, we hold that the interests of justice would be met in case the AO re-examines the entire issue afresh subject to payment of cost of Rs.20,000/- (Rupees twenty thousand only).
