NAKKODA SILVERR INDIA PRIVATE LIMITED,PUNE vs. DCIT, CIRCLE-2, PUNE, PUNE

The brief facts of the case are that, the assessee has filed return of income for the A.Y. 2017-18 disclosing a total income of Rs. 77,27,850/- and the return was processed under Section 143(1) of the Act dated 03.03.2018. The Assessing Officer(A.O) has received information that the assessee has received interest income from bank of Rs. 1,00,190/- and made cash deposits of Rs. 39,47,320/- in the bank account and the said information is not reflected in the return of income filed by the assessee for A.Y.2017-18.The A.O has reason to believe that the income has escaped assessment and fallowed the due process of law and has issued notice u/sec 148of the Act dated 31.03.2021. In compliance, the assessee has filed the return of income on 16.04.2021 disclosing a total income of Rs.77,27,850/-. Further the assessee has raised objections against the reopening of assessment and the objections were disposed off vide order dated 07.12.2021. Subsequently, the A.O has issued notice u/sec 142(1) of the Act on various dates and a show cause notice and there was no compliance. The A.O find that the assessee has not made submissions with supporting sources and evidences on the disputed issue of sources of cash deposits in spite of providing adequate opportunities of hearing and made addition of unexplained cash deposits u/sec68 of the Act and assessed the total income of Rs.1,16,75,170/-and passed the order u/sec147 r.w.s144B of the Act dated 02.03.2022. 3. Aggrieved by the order, the assessee has filed an appeal with the CIT(A).Whereas the CIT (A) has considered grounds of appeal, statement of facts, finding of the A.O and has issued notice of hearing and since there was no compliance, CIT(A) considering the information on record has confirmed the action of the Assessing officer and dismissed the assessee appeal. Aggrieved by the order of the CIT(A), the assessee has filed appeal with Hon’ble Tribunal.

At the time of hearing, the Ld.AR submitted that the CIT(A) has erred in confirming the action of the AO overlooking the information of the assessment proceedings and CIT(A) erred in not adjudicating the legal issue. The Ld.AR mentioned that non-compliance of notices before the CIT(A) is not a wanton act or deliberate. Further the assessee has a good case on merits and shall substantiate with material evidences and prayed for an opportunity before the Lower authorities. Per contra, the Ld.DR supported the order of CIT(A).

We heard the rival submissions and perused the material on record. Prima facie CIT(A) has passed the order considering the facts that there is no compliance in spite of providing adequate opportunity of hearing and notices were issued. Therefore, CIT(A) was of the opinion that the assessee is not interested in prosecuting the appeal and dismiss the appeal ex-parte confirming the action of the Assessing Officer. The CIT(A) has issued three notices referred at Para 5 of the order but there was no response. Whereas the assesse has raised grounds of appeal challenging the addition made by the A.O and there could be various reasons for non-appearance/ non-compliance which cannot be overruled. Therefore, considering the facts, circumstances, submissions and principles of natural justice, we shall provide with one more opportunity of hearing to the assessee to substantiate the case with evidences and information. Accordingly, set aside the order of the CIT(A) and remit the disputed issue to the file of the CIT(A) to adjudicate afresh and the assessee should be provided adequate opportunity of hearing and shall cooperate in submitting the information for early disposal of appeal. And the grounds of appeal of the assesse are allowed for statistical purposes.

In the result, the appeal filed by the assessee is allowed for statistical purposes.

The Pr. CIT concerned. 4. तिभागीयप्रतितिति,आयकरअिीिीयअतिकरण, “B” बेंच, पुणे/ DR, ITAT, “B” Bench, Pune. गार्डफ़ाइि / Guard File. 5. ////