DIGAMBHAR ANANDA THOKE,SATANA vs. ASSTT. COMMISSIONER OF INCOME TAX, CIRCLE 1, NASHIK

Since the issues involved in these appeals are common, identical and interlinked and for the sake of convenience, we shall take up ITA.No.1683/PUN/2026 as a lead case and facts narrated. 3. The brief facts of the case are that, the Assessing officer has received information that the assessee has made substantial cash deposits in the cooperative bank in the F.Y2014-15 and the assessee has not filed the return of income for the A.Y. 2015-16. The Assessing Officer (A.O) has reason to believe that income as escaped assessment and issued notice u/sec 148 of the Act dated 31.03.2022 and there was no compliance to the notice. Subsequently, the AO has issued notice u/sec 142(1) of the Act to explain the sources of cash deposits in the bank account with evidences and but there was no response from the assessee. The A.O find that the assessee has not made submissions on the disputed issue in spite of providing adequate opportunities of hearing and finally the A.O considering the information available on record has invoked the provisions of section 144 of the Act and made addition of unexplained cash deposits u/sec69A of the Act and assessed the total income of Rs.72,07,000/-and passed the order u/sec147 rws144 r.w.s144B of the Act dated 22.02.2023. 4. Aggrieved by the order, the assessee has filed an appeal before the CIT(A). Whereas the CIT(A) has considered grounds of appeal, statements of facts, finding of the Ld.AO and has issued notice of hearing and since there was no compliance, CIT(A) considering the information available on record has confirmed the action of the Assessing Officer and dismissed the assessee’s appeal. Aggrieved by the order of the CIT(A), the assessee has filed the appeal before the 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 the Ld.AR mentioned that non-compliance of notices before the CIT(A) is not a wanton act but circumstances beyond the control of the assessee and 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). 6. 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. Whereas the CIT(A) has issued notices referred at Para4 of the order but there was no response. Whereas the assesse has raised grounds of appeal challenging the addition u/sec69A 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, 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. ITA.No.1684/PUN/2026 for A.Y. 2015-16.

As the facts and circumstances in the penalty appeal is identical to ITA No. 1684/PUN/2026 for the A.Y 2015- 16 and the decision rendered in above paragraphs 6&7 would apply mutatis mutandis for this appeal also. Accordingly, the grounds of appeal of the assessee is allowed for statistical purpose.

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