NANDKISHOR KASHINATH SHIKRE,AHMEDNAGAR vs. INCOME TAX OFFICER, AHMEDNAGAR

Since the issues involved in these appeals are common, identical and interlinked and for the sake of convenience, we shall take up ITA.No.2028/PUN/2026 for the Assessment Year 2014-15 as a lead case and facts narrated.

The brief facts of the case are that, the assessee has filed the return of income for the A.Y. 2014-15 on 29.11.2014 disclosing a total income of Rs. 6,29,050/-.The Assessing Officer (A.O.) has received information that the assessee has made substantial cash deposits in the cooperative society and the assessee has not disclosed these financial transactions in the return of income filed. The Assessing Officer has reason to believe that the income has escaped assessment and fallowed the due process of law and passed the order u/sec148A(d) of the Act and issued notice u/sec148 of the Act on 31.03.2021 and the assessee has filed the return of income in compliance to the notice on 21.11.2021 disclosing a total income of Rs.6,29,050/-.Subsequently, the notice under Section 142(1) of the Act was issued and also a show cause notice to explain the sources of cash deposits along with the supporting evidences and the assessee has filed partial information mentioning that the assessee is a trader and commission agent of fresh vegetables and the sources of cash deposits are out of sale proceeds.Whereas the AO was not satisfied with the explanations as there is no documentary evidence was filed supporting the claim by the assessee. Finally the A.O has made addition of unexplained money u/sec69A of the Act of Rs.1,29,39,520/- and passed the order u/sec147 r.w.s. 144B of the Income Tax Act dated 31.03.2022. 4. Aggrieved by the order, the assessee has filed an appeal with the CIT(A). Whereas the CIT(A) has considered the grounds of appeal, statements of facts and finding of the AO and has issued notice of hearings and since there was no compliance by the assessee to the notices, therefore, CIT(A) considering information on record has confirmed the action of the AO and dismissed the appeal. Aggrieved by the order of the CIT(A), the assessee has filed the appeal before the Hon'ble Tribunal. None appeared on behalf of the assessee.

We heard the Ld.DR submissions and perused the material on record. Prima facie CIT(A) has passed the order considering the facts that there is no proper 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. Whereas the CIT(A) has issued three notices of hearing and the assessee has sought adjournment once and there was no response to two notices refereed at Para 1.3 of the order. Whereas the assessee has raised grounds of appeal challenging the addition u/se 69A of the Act 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 and principles of natural justice, shall provide with one more opportunity of hearing to the assessee to substantiate the case with evidences and information. Accordingly, we set aside the order of the CIT(A) and remit the disputed issues 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 assessee are allowed for statistical purposes.

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

As the facts and circumstances in this appeal is identical to ITA No.2028/PAN/2026 for the A.Y 2014-15 (except variance in figures) the decision rendered in above paragraphs 4 to 6 would apply mutatis mutandis for this appeal also. Accordingly, the grounds of appeal of the assessee are allowed for statistical purpose.

In the result, these two appeals filed by the assessee are allowed for statistical purpose.

The Pr. CIT concerned. 4. तिभागीय प्रतितिति, आयकर अिीिीय अतिकरण, “B” बेंच, पुणे/ DR, ITAT, “B” Bench, Pune. गार्डफ़ाइि / Guard File. 5. 6. ////