AGNIKANYA SANGHA PRATHAMIK BAHUMUKHI SAMABAY SAMITY LTD.,BISHNUPUR vs. ITO, WARD 33(1), KOLKATA, KOLKATA

On the facts and in the circumstances of the case the National Faceless Appeal Center (NFAC), New Delhi was not justified to pass an ex-parte order u/s 144 of the Act when two and half months were still to go for the time barring date without allowing adequate opportunity to the co-operative society which is a gross violation of the principles of natural justice.

On the facts and in the circumstances of the case the National Faceless Appeal Center (NFAC), New Delhi was not justified in holding regular cash Agnikanya Sangha Prathamik deposit to bank account amounting Rs. 49,03,552/as unexplained money and resorting to addition to income u/s 69A of the Act despite the same being a part of the audited books of accounts of the co-operative society.

On the facts and in the circumstances of the case the National Faceless Appeal Center (NFAC), New Delhi was not justified in initiating penalty proceedings u/s 271AAC of the Act despite there being no occasion to hold the regulus cash deposit to bank which were part of audited books, as unexplained money.

The order of assessment as well as the appellate order is otherwise perverse and passed in violation of statutory principles as well as the principles of natural justice.

The Appellant craves leave to add, amend, alter or abandon any one or all grounds in the course of hearing of the case."

Brief facts of the case are that the assessee had not filed the return of income for the AY 2019-20. Based on the information regarding cash deposits in the bank account during the FY 2018-19, the case was reopened u/s 147 of the Act. The assessee remained non-compliant to various statutory notices issued. The Assessing Officer (hereinafter referred to as Ld. 'AO') obtained bank statements u/s 133(6) of the Act, which revealed total cash deposits and credits of ₹49,03,552/-. In the absence of any explanation regarding the source of these deposits, the Ld. AO passed an ex parte assessment order u/s 144 r.w.s. 147 and 144B of the Act, treating the amount deposited as unexplained money u/s 69A r.w.s. 115BBE of the Act, and determined the total income at ₹49,03,552/-. Aggrieved with the assessment order, the assessee filed an appeal before the Ld. CIT(A), who observed that there was a delay of 279 days in filing of the appeal. Since no sufficient or reasonable cause was explained, nor any documentary evidence such as a medical certificate to substantiate the delay was filed, the Ld. CIT(A) refused to condone the delay and dismissed the appeal in limine as time-barred Agnikanya Sangha Prathamik without adjudicating the merits, confirmed the order of the Ld. AO and dismissed the appeal.

Aggrieved with the order of the Ld. CIT(A), the assessee has filed the appeal before the Tribunal.

Rival contentions were heard and the submissions made have been examined. The Ld. AR submitted that there was no proper representation before the lower authorities and the appeal was dismissed on account of delay of 279 days. Before the Ld. CIT(A), the delay of 279 days was not condoned and the appeal was dismissed on account of delay as the Ld. CIT(A) had required the assessee to file a medical certificate in support of the claim that the principal officer was not well and therefore, the appeal could not be filed in time but the same was not filed. The Ld. AR orally gave an undertaking that the required medical certificate would be filed before the Ld. CIT(A) if the matter is remanded before him.

We have considered the written submissions made, gone through the facts of the case and perused the record and the order of the Ld. CIT(A). The Bench noted that even before the Ld. AO as well, the assessment was made u/s 144 / 147 to the best of judgement. The Bench was of the view that in the interest of justice and fair play, another opportunity may be provided as the assessee could not represent before the Ld. AO as well. Therefore, the order of the Ld. CIT(A) is hereby set aside and the issue is remanded before him subject to the assessee submitting a medical certificate as was required by him. Further, as per sub-rule (3) of Rule 46A, he is also directed to grant an opportunity of being heard to the Ld. AO for examining the additional Agnikanya Sangha Prathamik evidence, if any and/or to produce any evidence in rebuttal of the same. Thus, the order of the Ld. CIT(A) is set aside and the appeal is restored before him for taking decision on the admission of the additional evidence and thereafter disposal of the grounds of appeal on merits by passing a speaking order. Needless to say, the assessee shall be given a reasonable opportunity of being heard to make any further submission it wants to make in support of the grounds of appeal and shall not seek unnecessary adjournments. Accordingly, the grounds taken by the assessee in the appeal are partly allowed for statistical purposes.

In the result, the appeal filed by the assessee is partly allowed for statistical purposes. Order pronounced in the open Court on 12th August, 2026. [Yogesh Kumar US] [Rakesh Mishra] Judicial Member Accountant Member Dated: 12.08.2026 Bidhan (Sr. P.S.)

CIT-

CIT(DR), Kolkata Benches, Kolkata.

Guard File. //// By order