SANTOSH PRABHAKAR TARAS,PUNE vs. THE ASSTT. CIT, CENTRAL CIRCLE 2(2), PUNE, PUNE

At the time of hearing, the Ld.AR submitted that there is delay of 115 days in filing the appeal before the Hon'ble Tribunal and the assessee has filed an affidavit for condonation of delay. On consideration of facts and information mentioned in the affidavit, there is a reasonable cause explained and the Ld. DR. has no specific objections. Accordingly, the delay is condoned and the appeal is admitted.

The brief facts of the case are that, the assessee is engaged in the business of land development and trading and he is also a partner in two partnership firms. There was survey operations u/sec133A of the Act carried out in the one of the partnership firms i.e M/s Truptati enterprises were several incriminating evidences involving the cash transactions were found The Assessing Officer(A.O) has dealt on the discrepancies in the transactions of the partnership firm, statement recorded and the assessee has accepted to admit the additional income in the individual capacity over and above the regular income for A.Y.2019-20. Subsequently, the assessee has filed the return of income on 30.07.2020 disclosing a total income of Rs. 6,09,480/- and the A.O found that the assessee has not disclosed the additional of Rs.73,00,000/- admitted in the survey operations. Further the A.O has issued notice u/sec 143(2) & u/sec 142(1) of the Act and a show cause notice but there was no compliance. Finally, the A.O based on the information available on record and income admitted in the survey operations invoked the provisions of Section 144 of the Act and made addition of (i) income declared in survey operations of Rs.73,00,000/- (ii) unexplained credits u/sec68 of the Act of Rs.1,00,72,933/- and (iii) disallowance of claim of house property loss of Rs.1,97,547/- and assessed the total income of Rs. 1,81,79,960/- and passed the order u/sec 144 of the Income Tax Act dated 27.09.2021. 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 AO 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 was due to email sent on different email.id other than the email.id mentioned in the Form.No.35 filed before the CIT(A).Non compliance of notices is not a wanton act but circumstances beyond the control of the assessee. Further the Ld.AR mentioned that 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).

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 Para 3 of the order but there was no response. Whereas the assesse has raised grounds of appeal challenging the additions 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 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 20th July, 2026. DIPAK P. RIPOTE PAVAN KUMAR GADALE (ACCOUNTANT MEMBER) (JUDICIAL MEMBER) Pune, Dated: 20th July, 2026 Abhishek Mohan Abhishek Mohan Mohan Date: 2026.07.21 10:29:52 +05'30' आदेशकीप्रतितितिअग्रेतिि / Copy of the Order forwarded to : अिीिार्थी / The Appellant. 1. प्रत्यर्थी / The Respondent.

The Pr. CIT concerned. 4. तिभागीयप्रतितिति,आयकरअिीिीयअतिकरण, “B” बेंच, पुणे/ DR, ITAT, “B” Bench, Pune. गार्डफ़ाइि / Guard File. 5. ////