SHAFIQUE MOHAMMAD,BHOPAL vs. ITO 3(1) BHOPAL, INCOME TAX DEPARTMENT BHOPAL

आदेश/ O R D E R

Per B.M. Biyani, A.M.:

Feeling aggrieved by order of first-appeal bearing DIN: ITBA/NFAC/S/250/2024-25/1070486566(1) dated 20.11.2024 passed by learned Commissioner of Income-Tax (Appeals)-NFAC, Delhi [“CIT(A)”] which in turn arises out of assessment-order dated 29.09.2021 passed by learned ITO-3(1), Bhopal [“AO”] u/s 147 r.w.s. 144 of Income-tax Act, 1961 [“the Act”] for Assessment-Year [“AY”] 2014-15, the assessee has filed this appeal on following grounds:

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“Ground 1. That in the facts and circumstances of the case the very initiation proceedings under section 148 of the Act as the fact that the appellant has deposited cash in its bank account cannot lead to forming an opinion of income escapement and the very initiation proceedings under section 147 of the Act and issuance of section 148 are bad in law and invalid. Ground 2. That in the facts and circumstances of the case cash deposited of Rs. 11,15,000 during the relevant assessment year is out of his business income of sweets and past savings of Rs. 3,05,000 and the rest amount was cash gift received from his brothers and sister. Thus no concealment of income has been done by the appellant willfully OR unintentionally in the relevant assessment year. Ground 3. That in the facts and circumstances of the case appellant had acted in good faith and the Learned Assessing Officer and Learned CIT appeals Faceless have passed the order in haste without giving sufficient opportunity to the appellant which is against the principle of natural justice and therefore, entire order is bad in law, which may kindly be annulled. Ground 4. That the appellant craves leave to add to amend alter modify substitute withdrawal DLEETE OR rescind all OR any of the above grounds of appeal on OR before the final hearing if necessary so arises.”

assessee invited our attention to the application for condonation of delay

supported by an affidavit filed by assessee. She narrated that the assessee’s

father is aged about 90 years and bed ridden. Further, at the relevant time,

the assessee himself as well as assessee’s son (who looks after affairs of

assessee) were suffering from health issues. A bunch of medical

prescriptions is filed at Pages 54 to 67 of Paper-Book to demonstrate the

factum of health issues. Therefore, there occurred non-compliances at lower

level and also delay in filing present appeal. Ld. AR prayed to condone delay

considering these facts. Ld. DR for revenue left this to the wisdom of bench.

Having regard to these facts and the averments made by assessee in the

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application/affidavit for condonation of delay and in absence of any contrary

material, we are satisfied that the delay in filing appeal was due to

“sufficient cause” and there is neither intentional nor deliberate attempt of

assessee to cause delay. In view of the settled legal position laid down by the

Hon’ble Supreme Court in Collector, Land Acquisition Vs Mst. Katiji and

others 1987 AIR 1353, 1987 2 SCC 387, wherein it has been held that

the “technical considerations” should not prevail over the cause of

“substantial justice”, we deem it fit to condone the delay. Accordingly, the

delay in filing appeal is condoned and the appeal is taken for hearing.

assessee-individual did not file any return of income of AY 2014-15. The AO,

on the basis of information in his possession revealing cash payment of Rs.

11,15,000/- having been made by assessee towards purchase of a property

made in auction conducted by a bank, issued notice dated 11.03.2020 u/s

148 to undertake assessment u/s 147 calling the assessee to file return of

income. However, the assessee did not comply with such notice. Thereafter,

the AO issued follow-up letter, notice u/s 142(1) and notice u/s 144 but the

same also remained un-complied by assessee. Finally, the AO completed

assessment u/s 144 assessing income of Rs. 11,15,000/- as unexplained

money u/s 69A r.w.s. 115BBE. Aggrieved, the assessee carried matter in

first-appeal whereupon the CIT(A) dismissed assessee’s appeal due to non-

participation. Still aggrieved, the assessee has come in next appeal before us.

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appeal passed by CIT(A) where the CIT(A) has concluded thus:

“In view of above judicial pronouncements coupled with the fact that the Appellant has not pursued the appeal and also on the face of total non- compliance, it is not possible to adjudicate the case on merit. I am, therefore, left with no option but to dismiss the appeal.” 5. Ld. AR submitted that the CIT(A), although due to non-prosecution by

assessee, but still has not made adjudication in accordance with provisions

of 250(6) of the Act which provides “The order of the Commissioner (Appeals)

disposing of the appeal shall be in writing and shall state the points for

determination, the decision thereon and the reason for the decision.”.

Therefore, the impugned order passed by CIT(A) deserves to be set aside. Ld.

AR further submits that the assessment-order passed by AO is also ex-parte

wherein the AO has made addition for lack of details/documents. However,

the assessee was unable to make representation before AO due to the very

same reasons as explained in the matter of delayed filing of this appeal. The

Ld. AR then asserted that the assessee has subsequently collected all

required details/documents and is ready and willing to make an effective

representation before AO if an opportunity is given and prays that the

present matter should be remanded to the file of AO for a fresh adjudication.

against remand but he would pray to give stricter directions to assessee.

of natural justice and also bearing in mind that no prejudice would be

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caused to revenue if the present matter is restored at the level of AO, we

remand this matter back to the file of AO for adjudication afresh, at the risk

and responsibility of assessee and subject to a small cost of Rs. 2,500/-

to be paid by assessee to Income-tax Department through appropriate

challan. The assessee shall submit a receipt of such payment to AO

during proceedings and not claim any credit or refund of such payment

in any manner. The AO shall give necessary opportunity of hearing to

assessee and pass an appropriate order uninfluenced by his earlier order.

The assessee is also directed to remain vigilant and ensure participation in

the hearings as may be fixed by AO and do not seek unnecessary

adjournments failing which the AO shall be at liberty to pass appropriate

order in accordance with law. Ordered accordingly.

to payment of cost by assessee as mentioned above.

Order pronounced in open court on 27/03/2026

Sd/- Sd/-

(PARESH M. JOSHI) (B.M. BIYANI) JUDICIAL MEMBER ACCOUNTANT MEMBER Indore

िदनांक/Dated : 27/03/2026 Patel/Sr. PS

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Copies to: (1) The appellant (2) The respondent (3) CIT (4) CIT(A) (5) Departmental Representative (6) Guard File By order UE COPYSr. Private Secretary Income Tax Appellate Tribunal Indore Bench, Indore

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