KAUSHIK JAMNADAS SHAH,MUMBAI vs. INCOME TAX OFFICER WARD 18(2)(1), MUMBAI, MUMBAI

Brief facts relevant for adjudication of this case are that in the instant case, the Assessing Officer, vide assessment order dated 28.12.2018 passed under section 143(3) of the Act, made an addition of Rs.15,12,330/- under section 68 of the Act on account of alleged unexplained cash credit arising from share transactions

Thus, the Assessee, being aggrieved, challenged the assessment order and the aforesaid additions before the Ld. Commissioner on 22.01.2019 by filing the first appeal, which was subsequently migrated to the National Faceless Appeal Centre (NFAC), which issued a notice dated 27.01.2021 fixing the case for hearing on 11.02.2021. In response thereto, the Assessee sought an adjournment. Thereafter, there was a substantial lapse of time, and after nearly five years, another notice dated 05.01.2026 was issued by the NFAC fixing the case for hearing on 12.01.2026. As the said notice remained un-complied with, the Ld. Commissioner proceeded ex parte and vide impugned order dated 14.03.2026, dismissed the appeal of the Assessee by affirming the aforesaid additions. Thus, the Assessee has preferred the instant appeal.

We have heard the parties, perused the material available on record and considered the rival submissions. Admittedly, there was a substantial gap between the first notice issued in the year 2021 and the subsequent notice issued in the year 2026. The Assessee therefore contends that, due to an inadvertent mistake, the email account remained unchecked and, consequently, the subsequent notice remained unattended. Considering the prolonged gap of nearly five years between the two notices, the explanation furnished by the Assessee appears to be plausible and bona fide. Therefore, we deem it appropriate to remand the case to the file of the Ld. Commissioner for decision afresh, after affording a reasonable opportunity of being heard to the Assessee.

Thus, the case is accordingly remanded to the file of the Ld. Commissioner for decision afresh, in accordance with law.

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