MANJOORALI DADEHAYAT BHUSANOOR,VIJAYAPURA vs. INCOME TAX OFFICER, WARD-1 & TPS, VIJAYAPURA
What did the Tribunal hold?
The Tribunal, considering the assessee's request for one final opportunity, decided to remand the matter back to the CIT(A). The CIT(A) is directed to consider the documentary evidence and decide the appeal afresh.
What were the facts?
The assessee failed to file a return of income and respond to notices from the AO and CIT(A). The AO made an addition of Rs. 34,09,000/- based on cash deposits during demonetization. The CIT(A) upheld the AO's order.
What were the issues?
Whether the assessee should be granted another opportunity to present evidence before the CIT(A) after failing to participate in assessment and appellate proceedings.
Which sections of the Income-tax Act were involved?
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, BANGALORE BENCHES, BANGALORE
Before: SHRI BALAKRISHNAN S & SHRI SOUNDARARAJAN K.
PER SHRI BALAKRISHNAN S, ACCOUNTANT MEMBER: This appeal is filed by the Assessee against the order of learned Commissioner of Income-tax (Appeals) [in short ‘CIT(A)’], NFAC, Delhi, vide DIN: ITBA/NFAC/S/250/2025-26/1081631474(1) dated 10-Oct-2025 for the Assessment Year 2017-18.
Briefly stated, the facts of the case are assessee has not filed the return of income and notice under section 142(1) of the Act dated 27.11.2017 was issued requiring the assessee to file the return of income for the Assessment Year 2017-18. The assessee 1
ITA 2393/BANG/2026 MANJOORALI DADEHAYAT BHUSANOOR
failed to furnish return of income either under section 139 of the Act or in response to notice under section 142(1) of the Act. On the basis of information gathered, the learned AO noticed that assessee has deposited substantial cash in bank account during the demonetization period amounting to Rs.34,09,000/- in the Canara Bank, Almel Branch. Since the assessee did not respond to any of the notices issued by the learned AO, the learned AO passed the Order under section 144 of the Act by making addition of Rs 34,09,000/-.
On being aggrieved by the Order of the learned AO, assessee carried the matter before the learned CIT(A). The learned CIT(A) provided multiple opportunities to the assessee but the assessee failed to respond to any of the notices of the learned CIT(A). Therefore, the learned CIT(A) concluded that in the absence of any evidence, considering the facts and circumstances of the case, upheld the Order passed by the learned AO and the appeal of the assessee was therefore dismissed.
On being aggrieved by the Order of the learned CIT(A), the assessee is in appeal before us by raising various grounds. At the outset, the learned AR submitted that assessee could not participate in the assessment proceedings as well as appellate proceedings. He therefore prayed for one final opportunity before the learned CIT(A) to provide documentary evidence substantiating the grounds of appeal raised before him.
Per contra, the learned DR strongly objected to the remanding back of the issue to the learned CIT(A) since the assessee has not responded to any of the notices even before the AO and learned CIT(A).
6 We have heard the rival submissions and perused the material available on record. It is an admitted fact that assessee has not filed the return of income and notice under section 142(1) of the Act dated 27.11.2017 was issued requiring the assessee to file the return of income for the Assessment Year 2017-18 but the assessee failed to furnish return of income either under section 139 of the Act or in response to notice under section 142(1) of the Act and assessee had not participated in the assessment proceedings as well as appellate proceedings. Since the learned AR is requesting one more opportunity of being heard before the learned CIT(A), we are of the considered 2
ITA 2393/BANG/2026 MANJOORALI DADEHAYAT BHUSANOOR
view that assessee shall be provided with an opportunity of being heard and therefore remand the matter back to the file of the learned CIT(A) for consideration of the documentary evidence furnished by the assessee and decide the appeal on merits in accordance with law, afresh.
In the result, appeal of the assessee is partly allowed for statistical purposes.
Pronounced in the open court on the date mentioned on the caption page.
Sd/- Sd/- SOUNDARARAJAN K BALAKRISHNAN S ACCOUNTANT MEMBER JUDICIAL MEMBER Bangalore Dated: 19.08.2026 /NS*/ Copy to: 1. Appellants 2. Respondent 3. CIT 4. CIT(A) 5. DR 6. Guard file By order
Assistant Registrar, ITAT, Bangalore.
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