NALINI B PAWAR,PUNE vs INCOME TAX OFFICER, WARD-5(2), PUNE, PUNE

Income Tax Appellate Tribunal, PUNE “A” BENCH, PUNE

Before: SHRI PARTHA SARATHI CHAUDHURY & SHRI G. D. PADMAHSHALI

Pronounced: 10/10/2023

॥ आयकर अपीलीय न्यायाधिकरण, पुणे “ए” न्यायपीठ, पुणे में ॥ IN THE INCOME TAX APPELLATE TRIBUNAL, PUNE “A” BENCH, PUNE BEFORE SHRI PARTHA SARATHI CHAUDHURY, JUDICIAL MEMBER AND SHRI G. D. PADMAHSHALI, ACCOUNTANT MEMBER आयकर अपऩल सं. / ITA No. 914/PUN/2023 निर्धारण वर्ा / Assessment Year : 2016-17 Nalini Balasaheb Pawar, 32/1/1, Shree Mangal Society, Opp. Post Office, Dhankawadi, Pune – 411043 PAN: AIUPP7152Q . . . . . . . अपऩलधथी / Appellant बनाम / V/s Income Tax Officer, Ward 5(2) Pune . . . . . . . प्रत्यथी / Respondent द्वारा / Appearances Assessee by : None for the Assessee Revenue by : Shri Ramnath P Murkunde सपिवधई की तधरऩख / Date of conclusive Hearing : 09/10/2023 घोर्णध की तधरऩख / Date of Pronouncement : 10/10/2023 आदेश / ORDER PER G. D. PADMAHSHALI, AM; This appeal of the assessee for assessment year [for short ‘AY’] 2016-17 is assailed against first appellate order of National Faceless Appeal Centre, Delhi [for short ‘NFAC’] dt. 20/06/2023 passed u/s 250 of the Income-tax Act,1961 [for short ‘the Act’], which ascended out of assessment order dt. 30/12/2018 passed u/s 144 by the Income-Tax Officer, Ward 5(2), Pune [for short ‘AO’]

ITAT-Pune Page 1 of 4

Nalini Balasaheb Pawar, ITA No.914 /PUN/2023 A.Y. 2016-17 2. The appellant assessee raised following grounds; “1. The Appellant states that the Assessing Officer is erred in treating genuine loans as non-genuine and creating unjust additions on loans u/s 68 of the Income Tax Act, 1961 of Rs. 50,75,000/- in the order passed under section 144 of the Income Tax Act and the Appellate Authority erred in confirming such unjust additions on loans u/s 68 of Rs. 50,75,000/- in the order passed under section 144 of the Income Tax Act, 1961 without considering the facts and circumstances. The Assessing Officer passed the order under section 144 of the Act and made addition of Rs. 50,75,000/- though the loans are genuine and assesse is having all the documentary evidences and details for the loans to prove the same. 2. The Assessing Officer is erred and not justify in disallowance of Rs. 8,69,280/- out of expenditure on ad-hoc basis on his own assumption in the order passed under section 144 of the Income Tax Act and the Appellate Authority not justify in confirming such unjust additions of Rs. 8,69,280/- in the order passed under section 144 of the Income Tax Act, 1961 without considering the facts and circumstances. 3. The Appellant craves leave to add, amend or alter, delete any of the above Grounds of Appeal.”

Despite service of notice none appeared on behalf of assessee nor there placed any application for adjournment; therefore in the larger interest of justice we proceeded to adjudicate the issue u/r 24 of ITAT Rules, 1963 ex-parte with the able assistance of Ld. DR.

At the outset of hearing, the Ld. DR inviting our attention to the impugned order of Ld. NFAC has submitted that, aggrieved by the best judgment order of the Ld. AO dt. 30/12/2018 passed u/s 144 of the Act, the appellant assessee had filed an appeal before the Ld. NFAC on 01/03/2019, however for the reasons best known

ITAT-Pune Page 2 of 4

Nalini Balasaheb Pawar, ITA No.914 /PUN/2023 A.Y. 2016-17 to the assessee, no evidence in support of its claim were laid before the first appellate authority. For the reasons the Ld. NFAC without dealing case on merits has dismissed the appeal ex-parte. Per contra the Ld. Senior DR solidifying the facts, also contended that under faceless regime the appellant did neither respond to any of seven notices served to it nor had brought on record a proof of having adduced any material in support of its claim, consequently the Ld. NFAC had no choice but to confirm the findings of Ld. AO in the absence of deprecative material on record.

After hearing to Ld. DR, perused material placed on record in light of Rule 18 of ITAT-Rules 1963 and we find that due to COVID-19 coupled with other consequential reasons the appellant failed to comply with notices and adduce evidential documents before authorities below, which resulted into ex-parte proceedings without any effective determination of rights and liabilities of either party on merits. We also note that, in the light of restriction placed by clause (a) of sub-section (1) of section 251, the Ld. NFAC without remanding the ex-parte

ITAT-Pune Page 3 of 4

Nalini Balasaheb Pawar, ITA No.914 /PUN/2023 A.Y. 2016-17 assessment has dismissed the appeal of the appellant assessee de-facto. However said dismissal in our view is suffered from the provisions of sub-section (6) of section 250 of the Act, which mandates the Ld. first appellate authority to state the points for its determination, the decision thereon and reason for such decision while disposing of the appeal instituted before it u/s 246A of the Act. For the reason we see force in the request of Ld. DR and consequently without commenting on its merits we deem it fit to remand the case back to the file of the Ld. NFAC for de-novo adjudication in the light of section 250(6) of the Act preferably in three effective hearings, ergo we order accordingly.

In result, the appeal is ALLOWED FOR STATISTICAL PURPOSE. U/r 34 of ITAT Rules, order pronounced in open court on this Tuesday 10th day of October, 2023.

-S/d- -S/d- PARTHA SARATHI CHAUDHURY G. D. PADMAHSHALI JUDICIAL MEMBER ACCOUNTANT MEMBER पुणे / PUNE ; दिन ांक / Dated : 10th day of October, 2023. आदेश की प्रधिधलधप अग्रेधिि / Copy of the Order forwarded to : 1.अपील र्थी / The Appellant. 2. प्रत्यर्थी / The Respondent. 3. The CIT(A)-NFAC, Delhi 6. ग र्डफ़ इल / Guard File. 4. Pr.CIT, -3, Pune (MH-India) 5.DR, ITAT, Bench ‘A’, Pune Ashwini आिेश नुस र / By Order वररष्ठ दनजी सदिव / Sr. Private Secretary आयकर अपीलीय न्य य दिकरण, पुणे / ITAT, Pune. ITAT-Pune Page 4 of 4

NALINI B PAWAR,PUNE vs. INCOME TAX OFFICER, WARD-5(2), PUNE, PUNE