VARSHA ULLAHAS SHEWALE ,PUNE vs. ITO WD-14(3) , , PUNE

Based on the information available with the Department that the assessee had made cash deposit amounting to Rs. 3,00,000/- and Time Deposit of Rs. 1,20,22,055/- in her bank account maintained with Jansheva Sahakari Bank Ltd. during the relevant AY. 2015-16, the case of the assessee was reopened by issue of notice u/s. 148 of the Act, dt. 13-04-2022. However, the said notice was not responded to by the assessee. Subsequent notices issued u/s. 142(1) of the Act as well as the show cause notice issued u/s. 144 of the Act also remained un-complied

Aggrieved the assessee preferred appeal before the Ld.CIT(A)/NFAC. During the appellate proceedings, the assessee furnished various additional evidences to substantiate its claim of deposits made in her bank account maintained with Jansheva Sahakari Bank Ltd. The Ld.CIT(A)/NFAC set aside the matter to the file of the Ld.AO with a direction to frame a fresh assessment, after affording due opportunity to the assessee to produce all relevant evidence/information/explanation by invoking the amended provisions of section 251(1)(a) inserted by the Finance Act, 2024 w.e.f. 01-10-2024. 4. Dissatisfied, the assessee is in appeal before the Tribunal raising the following Grounds of Appeal:

The Ld.AR submitted that before the Ld.CIT(A)/NFAC apart from challenging the impugned additions made by the Ld.AO, the assessee had also raised a legal ground (Ground No.3 in Form-35) that “the notice issued

The Ld.DR though supported the order of the Ld.CIT(A)/NFAC, he had no serious objection if the matter is set aside to the file of the Ld.CIT(A)/NFAC for adjudication of the legal ground raised by the assessee.

We have heard the Ld. Representatives of the Parties and perused the material available on record. Admittedly, there was non-compliance to the notices issued by the Ld.AO which constrained him to pass an ex-parte order qua the assessee determining the assessed income of the assessee at Rs. 1,23,22,055/- u/s. 69/69A of the Act in the absence of any supporting documentary evidences furnished by the assessee. As the assessee filed certain additional evidences in support of his claim during the appellate proceedings before the Ld.CIT(A)/NFAC, he set aside the assessment order with a direction to the Ld.AO to adjudicate the issues afresh on merits. It is the submission of the Ld. Counsel for the assessee that apart from challenging the issues on merits, the assessee had also raised a legal ground before the Ld.CIT(A)/NFAC, challenging the validity of the notice issued by the Ld.AO u/s. 148A(b) of the Act itself. However, the Ld.CIT(A)/NFAC has not adjudicated the same. He has therefore, urged that the matter may be set aside to the file of the Ld.CIT(A)/NFAC to 4 adjudicate the legal ground raised by the assessee as the same goes to the root of the matter. Considering the totality of the facts and in the circumstances of the case, we deem it fit and proper, in the interest of justice to set aside the impugned order of the Ld.CIT(A)/NFAC and restore the matter back to his file with a direction to decide the legal issue raised by the assessee and as per fact and law, after affording reasonable opportunity of being heard to the assessee. Needless to say, the assessee shall provide the requisite support in terms of submitting the relevant documents/evidence as may be required/called upon on the appointed date, without seeking any adjournment, unless required for a sufficient cause failing which the Ld.CIT(A)/NFAC shall be at liberty to pass the appropriate order in accordance with law. We hold and direct accordingly. The grounds of appeal raised by the assessee are accordingly allowed for statistical purposes.

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

The concerned Pr.CIT, Pune

DR, ITAT, „B‟ Bench, Pune 5. ग र्ड फ ईल / Guard file. आदेशानुसार/ BY ORDER, ////