SHOBHA DEVI,VARANASI vs. INCOME TAX OFFICER, WARD 3 (4), VARANASI

IN THE INCOME TAX APPELLATE TRIBUNAL CIRCUIT BENCH (SMC), VARANASI BEFORE SHRI. SUDHANSHU SRIVASTAVA, JUDICIAL MEMBER ITA No.34/VNS/2025 Assessment Year: 2012-13 Shobha Devi v. The ITO E-478, Ashok Vihar Ward 3(4) Phase 1, Pahariya Varanasi Varanasi (U.P) TAN/PAN:BBMPD8974Q (Appellant) (Respondent) Appellant by: None (Application for adjournment) Respondent by: Shri Deepak Yadav, D.R. O R D E R This appeal has been preferred by the Assessee against the order dated 23.11.2023, passed by the National Faceless Appeal Centre, Delhi (NFAC) for Assessment Year 2012-13.

2.0 The brief facts of the case are that the assessee had not filed the return of income for the year under consideration. The Income Tax Department was in possession of information that the assessee had made cash deposits to the tune of Rs.19,64,750/- in her Saving Bank Account maintained with ICICI Bank. The Assessing Officer (AO) issued statutory notice, requiring the assessee to explain the source of cash deposits of Rs.19,64,750/-. However, there was no response from the side of the assessee. Thereafter, the AO reopened the case of the assessee under section 147 of the Income Tax Act, 1961

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(hereinafter called 'the Act’) after issuing notice under section 148 of the Act to the assessee. In response to notice under section 148 of the Act, there was no response from the side of the assessee. The AO, thereafter, proceeded to complete the assessment on the basis of Best Judgment Assessment. Accordingly, the AO issued Show Cause Notice dated 09.12.2019, requiring the assessee to show cause as to why unexplained money of Rs.19,64,750/- may not be treated as assessee’s income and be added to the total income of the assessee. Since the assessee failed to furnish the source of deposits in her Bank Account, the AO treated the total deposits of Rs.19,64,750/- in her Bank Account maintained with ICICI Bank, during the during the year under consideration, as unexplained money of the assessee and added the same to the total income of the assessee under section 69A of the Act. The AO completed the assessment under section 144 read with section 147 the Act, assessing the total income of the assessee at Rs.19,64,750/-.

2.1 Aggrieved, the Assessee preferred an appeal before the Ld. First Appellate Authority. Subsequently, the appeal was migrated to NFAC, which dismissed the appeal of the assessee in limine for the reason of delay in filing the appeal before the Ld. First Appellate Authority.

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2.2 Now the assessee has approached this Tribunal challenging the order of the NFAC, by raising the following grounds of appeal:

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4.0 During the course of hearing, it was brought to my notice that there was a delay of 380 days in filing the appeal and the assessee had filed an application dated 14.02.2025 for condonation of delay, stating therein that the assessee had come to know about passing of the order by the Ld. First Appellate Authority only when the recovery proceedings were initiated by the Income Tax Department and that the same was received by her through her present Counsel on 24.12.2024 only and, thereafter, the appeal was filed before the Tribunal. The prayer of the assessee was that the delay be condoned and the appeal be heard on merits.

5.0 The Ld. Sr. D.R. opposed the condonation of delay.

6.0 In view of the prayer made by the Counsel of the assessee, I condone the delay in filing of the appeal and admit the appeal for hearing.

7.0 The Ld. Sr. D.R., supporting the orders of the authorities below, submitted that the appeal of the assessee may be dismissed.

8.0 I have heard the ld. Senior Departmental Representative and have also perused the material on record. It is evident that the order passed by the AO was ex-parte qua the assessee and the NFAC, without adjudicating the issues involved in the appeal,

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simply sustained the addition made by the AO and dismissed the appeal of the assessee in limine for the reason of delay in filing the appeal. Looking into the facts of this case, I am of the considered view that the assessee deserves one more opportunity to present her case and, therefore, I set aside the order of the NFAC and restore this file to the Office of the Assessing Officer with the direction to provide one more opportunity to the assessee to present her case. I also caution the assessee to fully comply with the directions of the Assessing Officer in the set- aside proceedings when called upon to do so, failing which, the Assessing Officer would be at complete liberty to pass the order in accordance with law, based on material available on record even if it is ex-parte qua the assessee.

9.0 In the result, the appeal of the assessee stands allowed for statistical purposes.

Order pronounced in the open Court on 08/09/2026.

Sd/- [SUDHANSHU SRIVASTAVA] JUDICIAL MEMBER DATED:08/09/2026 JJ: Copy forwarded to: 1. Appellant 2. Respondent 3. CIT(A) 4. CIT 5. DR

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By order

Assistant Registrar/DDO