MAHEBUB KHAN NIYAMAT KHAN PATHAN,BHOKARDAN vs. INCOME TAX OFFICER WARD 1(1), AURANGABAD

The brief facts of the case are that, the Income Tax Department has received information from the search and seizure action in the case of cooperative credit society that the assessee has maintained account and has made substantial cash deposits in the F.Y. 2013-14 and the assessee has not filed the return of income for A.Y.2014- 15.The Assessing Officer (A.O) has reason to believe that income as escaped assessment and issued notice u/sec 148(A) of the Act and subsequently, order under Clause(d) of section 148A of the I.T. Act was passed on 25.07.2022. Further notice u/sec 143(2) and 142(1) of the Act was issued to submit the details and the claims made by the assessee. The AO has dealt on the submissions made by the assessee in respect of the sales of agricultural products and the various evidences in respect to the transactions. Whereas the AO was not satisfied with the explanations as the assessee could not substantiate the sources of cash deposits and made addition and assessed the total income of Rs.7.07,76.009/- and passed the order u/sec 147 r.w.s 144B of the Act dated 27.04.2023. Aggrieved by the order, the assessee has filed a rectification application and the same was rejected by order u/sec 154 r.w.s 147 of the Act dated 07.06.2023. 3. Aggrieved by the rectification order, the assessee has filed an appeal before the CIT(A) 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, 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 non- compliance of notice was not a deliberate act or wanton act by the assessee. Further, 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 inspite 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 in Page 7 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, Weset aside the order of the CIT(A) and remit the disputed issue to the file of the CIT(A) to adjudicate afresh and the assessee should be provided adequateopportunity of hearing and shall cooperate in submitting the information for early disposal of appeal.

In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the open Court on 29th June, 2026. MANISH BORAD PAVAN KUMAR GADALE (ACCOUNTANT MEMBER) (JUDICIAL MEMBER) Pune, Dated: June, 2026 Abhishek Mohan

The Pr. CIT concerned. विभागीयप्रविविवि,आयकरअपीलीयअविकरण, “B” बेंच, 4. पुणे/ DR, ITAT, “B” Bench, Pune. गार्डफ़ाइल / Guard File. 5. आदेशािुसार / BY ORDER, ////