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TMI Blog2024 (11) TMI 221X X X X Extracts X X X X X X X X Extracts X X X X ..... f a person on whose behalf or for whose benefit income therein referred to is receivable. Accordingly, now when the A.O had proceeded with and framed the assessment u/s. 166 of the Act, i.e. in the hands of the individual beneficiary, then, in case if the said assessment order was not to be accepted, it was for the said assessee to have carried the same by way of an appeal before the CIT(Appeals). Accordingly, the Ld. AR's claim that as the trust viz, Kajal Deepak Trust is the primary assessee, therefore, no infirmity arises from the fact that the latter had filed the appeal before the CIT(Appeals) against the assessment order which was never passed in its case cannot be accepted. As the assessee, viz. Ms. Kajal Jadwani had for the aforesaid misconception failed to carry the impugned order of the A.O passed u/s. 143(3) by way of a proper appeal before the CIT(Appeals), therefore, she shall remain at a liberty to assail the impugned assessment order before the first appellate authority, who is directed to adopt a liberal approach regarding the reasons leading to the delay in preferring of the appeal before him. Appeal of the assessee trust is dismissed. - SHRI RAVISH SOOD, JUD ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0.12.2016 there were cash deposits of Rs. 9 lacs in the bank account No.0465/SB-1499 of the trust, viz. Kajal Deepak Trust with Jammu Kashmir Bank Ltd, Branch: Lalganga Shopping Mall, G.E. Road, Raipur (C.G.), as under: Sl. No. Date Denomination Amount in Rs. 1. 17/11/2016 Rs. 1000 x 800 8,00,000/- 2. 17/11/2016 Rs. 500 x 200 1,00,000/- Total Rs. 8,00,000/- On being queried, Ms. Kajal Jadwani (supra) in her statement recorded by the A.O u/s. 131(1A) of the Act dated 08.11.2019 stated that she was regularly being assessed to tax and had been filing her returns of income (through her father) for the last 8-10 years. As regards the cash deposits, it was stated that the same were sourced from the cash in hand of Rs. 8,45,910/- that was available with her on 31.03.2016 along with the income for the subject year. Elaborating further, Ms. Kajal Jadwani had in her statement recorded u/s. 131(1A) of the Act dated 08.11.2019 stated that the fixed deposits on which she was in receipt of interest income were sourced out of cash gifts which she had been receiving from her relatives and friends since 2003. It was further stated by her that the gifts received were duly disclosed in her returns of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6.12.2023 (fixing hearing of the appeal on 14.12.2023), had neither participated in the proceedings nor furnished any submissions, therefore, the CIT(Appeals) was of the view that it was not interested in prosecuting the matter. The CIT(Appeals) after referring to the facts of the case observed that as the appellant had failed to place on record any material which would reveal that the addition made by the A.O was either arbitrary, biased, irrational, capricious or vindictive, thus, upheld the assessment order and dismissed the appeal. For the sake of clarity, the observations of the CIT(Appeals) are culled out as under: Decision- In this case the assessing officer in his assessment order has stated as under: 10 In the present case, the assessee has deposited Cash in its bank accounts. Further, the nature and source of such Deposits made in the bank accounts were not at all satisfactory explanation. Further, for invoking deeming provisions under Section 69A of the act, there should be clearly identifiable asset or unexplained Money. It is amply proved beyond doubt that the assessee has deposited Cash appearing in bank accounts stands not fully explained, and the sum al Rs 9,00,000/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eans an effective appeal. An appeal withdrawn is an appeal non-est as judicial thinking suggests. Purposefully interpreted, preferring an appeal means more than formally filing it but effectively prosecuting it. Mere institution followed by withdrawal would cancel the effect and result in non-prosecution and obliteration of appeal which is the same as not preferring an appeal ii) Hon'ble M.P. High Court in the case of Estate of Late Tukojirao Holkar vs. CWT, 223 ITR 480 (MP), while dismissing the reference made at the instances of the assessee in default made following observation in their order: - If the party, at whose instance the reference is made, fails to appear at the hearing, or fails in taking steps for preparation of the paper books so as to enable hearing of the reference, the court is not bound to answer the reference. Under the circumstances, it is presumed that the appellant is not interested to pursue this appeal and it has nothing to say in defence of the grounds of appeal taken. Therefore, I have no option but to decide the appeal on merits on the basis of materials on record. The present appeal is against the order u/s 143(3) of the Income Tax Act, 1961 passed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was liable to be struck down. Elaborating on his contention, the Ld. AR submitted that as the beneficiary, viz. Ms. Kajal Jadwani during the subject year was a minor, therefore, the impugned addition of cash deposits in the bank account of the assessee trust could not have been brought to tax in her hands u/s. 166 of the Act. Carrying his contention further, the Ld. AR submitted that as the assessee, viz. Ms. Kajal Jadwani, the sole beneficiary of the assessee trust was a minor during the subject year, therefore, as per the mandate of Section 64(1A) of the Act the impugned addition could have only been looked into in the hands of either of her parents having greater income. Apart from that, the Ld. AR submitted that as the cash deposits in the bank account of the trust were sourced from cash in hand of Rs.8.45 lacs (approx.) available with the beneficiary, viz. Ms. Kajal Jadwani as was duly disclosed in her balance sheet as of 31.03.2016, therefore, there was no justification for the A.O to have made an addition to the said extent and held the same as unexplained money u/s. 69A of the Act. 12. Further, the Ld. AR submitted that as at the stage of e-filing of the appeal there was a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dical person was formed or established or incorporated with the object of deriving income, profits or gains; As per Section 246A of the Act, an appeal, inter alia, against the order of assessment u/s. 143(3) of the Act can only be filed before the CIT(Appeals) by the assessee against whom the said order of assessment had been so passed. For the sake of clarity, Section 246A(1)(a) of the Act is culled out as under (relevant extract): 246A. (1) Any assessee or any deductor or any collector aggrieved by any of the following orders (whether made before or after the appointed day) may appeal to the Commissioner (Appeals) against (a) an order passed by a Joint Commissioner under clause (ii) of sub-section (3) of section 115VP or an order against the assessee where the assessee denies his liability to be assessed under this Act or an intimation under sub-section (1) or sub-section (1B) of section 143 or sub-section (1) of section 200A or sub-section (1) of section 206CB, where the assessee or the deductor or the collector objects to the making of adjustments, or any order of assessment under sub-section (3) of section 143 except an order passed in pursuance of directions of the Dispute Re ..... X X X X Extracts X X X X X X X X Extracts X X X X
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