BALU RAMBHAU TANPURE,JALNA vs. INCOME TAX OFFICER WARD 2, JALNA

The brief facts of the case are that, The Assessing Officer (A.O) received the information that the assessee has made substantial cash deposits in the bank account and the assessee has not filed the return of income for the A.Y. 2012-

The A.O has reason to believe that the income has escaped assessment and issued notice u/sec 148 of the Act. Further, notice u/sec 142(1) of the Act was issued on various dates on the assessee to substantiate the cash deposits with supporting evidence but there was no compliance. Finally, the A.O considering the information available on record dealt on the transactions of cash deposits and find that the assessee is engaged in various business activities. The AO considered total deposits as turnover of the assessee and estimated income @ 8% which works out to Rs. 16,26,669/-. Similarly, A O made addition of unexplained income of Rs.1,00,400/- and unexplained credits of Rs. 4,61,000/- and assessed the total income of Rs.21,88,069/- and passed the order u/sec144 r.w.s. 147 of the Income Tax Act dated 28.12.2019. 3. Aggrieved by the order, the assessee has filed appeal with the CIT(A), whereas the CIT(A) has considered the grounds of appeal, statement of facts and finding of the AO and has issued notice of hearings and since there was no compliance by the assessee to the notices, therefore, CIT(A) considering information on record has granted partial relief and partly allowed the appeal. Aggrieved by the order of the CIT(A), assessee has filed appeal before the Hon'ble Tribunal.

At the time of hearing, the Ld.A.R submitted that the CIT(A) has erred in sustaining the action of the AO overlooking the information of the assessment proceedings. Further, the LdA.R mentioned that the 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 of the CIT(A).

Heard the rival submissions and perused the material on record. Prima facie, the 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 passed ex- parte order allowing marginal relief and confirmed the action of the AO. Whereas the CIT(A) has issued notices of hearing referred at Para 4 of the CIT(A) order but there was no response and 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. The Ld.AR mentioned that the non-compliance to the notices in the appellate proceedings was not deliberate nor intentional, but the circumstances beyond the control of the assessee. 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 and principle of natural justice 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 the CIT(A) for adjudication afresh on merits and the assessee should be provided adequate opportunity of hearing and shall cooperate in considering the information for earlier disposal of appeal. And allow the grounds of appeal of the assessee for statistical purposes.

In the result, appeal filed by the Assessee is allowed for statistical purposes. Order pronounced in the open Court on 08th July, 2026. PAVAN KUMAR GADALE (JUDICIAL MEMBER) Pune, Dated: 08th July, 2026 Abhishek Mohan Abhishek Mohan Mohan Date: 2026.07.08 18:25:18 +05'30' आदेश की प्रतितिति अग्रेतिि / Copy of the Order forwarded to : अिीिार्थी / The Appellant. 1. प्रत्यर्थी / The Respondent.

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