AJINKYA RAVINDRA PAWAR,NASHIK vs. INCOME TAX OFFICER, WARD 2(1), NASHIK

The brief facts of the case are that, the assessee is an individual and Assessing Officer (A.O) has received information that the assessee has purchased the immovable property and received fees for technical services in the F.Y. 2014-15 and the assessee has not filed the return of income for the Assessment Year 2015-16. The A.O has reason to believe that income has escaped assessment and issued notice u/sec 148A(b) of the Act and there was no compliance by the assessee and the A.O has passed the order under Section 148A(d) of the Act dated 31.03.2022 and notice u/sec 148 of the Act was issued and there was no response. Further notice u/sec 142(1) of the Act and a show cause notice was issued to explain the sources of purchase of property with the evidences and there was no response. Finally the A.O has issued a show cause notice and the assessee has submitted the details and filed the return of income. The A.O has dealt on the facts and submissions referred the matter to the D.V.O and since the report was not received, the Assessing Officer considering the time barring limitation and considering the information available on record has invoked the provisions of section 56(2)(vii) r.w,s 50C of the Act and made addition of Rs.1,57,25,000/- and similarly unexplained investment u/sec69 of the Act of Rs.69,00,000/- and assessed the total income of Rs.2,92,64,430/- and passed the order under Section 147 r.w.s. 144B of the Income Tax Act dated 03.03.2023. 3. Aggrieved by the order, the assessee has filed an appeal before the CIT where the CIT(A) has considered the grounds of appeal, statements of facts and finding of the AO and 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), assessee has filed appeal before the Hon'ble Tribunal.

At the time of hearing, ld. AR submitted that the CIT(A) has erred in confirming the action of the AO overlooking the information of the assessment proceedings and non- compliance of notice was not a deliberate act or wanton act by the assessee. Further, the Ld. AR of the assessee mentioned that assessee has a good case on merits and shall substantiate with material evidences and prayed for an opportunity to explain before the lower authorities. Per contra, the ld. DR supported the order the CIT(A).

We heard the rival submissions and perused the material on record. Prima facie, CIT(A) has passed the order, considering the fact that there is non-compliance and non-appearance 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 dismissed the appeal ex-parte confirming the action of the AO. Whereas the CIT(A) has issued notices on various dates referred at Para 4.1 of the order but there was no response. Thus, the CIT(A) came to the conclusion that the assessee is not interested and decided the appeal based on the information available on record. Whereas the assessee has raised grounds of appeal challenging in the additions made by the AO and there could be various reasons for non-appearance 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, 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 assesse are allowed for statistical purposes.

In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the open Court on 23rd July, 2026. DIPAK P. RIPOTE PAVAN KUMAR GADALE (ACCOUNTANMEMBER) (JUDICIAL MEMBER) Pune, Dated: 23rd uly, 2026 Abhishek Mohan Abhishek Mohan Date: 2026.07.23 17:37:42 +05'30' आदेशकीप्रतितितिअग्रेतिि / Copy of the Order forwarded to : अिीिार्थी / The Appellant. 1. प्रत्यर्थी / The Respondent.

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