BASU DEV SHARMA,GUWAHATI vs. ITO-W(1), GUWAHATI

IN THE INCOME TAX APPELLATE TRIBUNAL – GUWAHATI BENCH VIRTUAL BENCH AT KOLKATA Before Shri Sonjoy Sarma, Judicial Member and Shri Rakesh Mishra, Accountant Member ITA No.121/GTY/2026 Assessment Year: 2017-18 Basu Dev Sharma………………………………………….………...Appellant House No.67, Narangi Housing Colony, Kamrup, Guwahati Assam-781026 [PAN: AVMPS2939K] vs. ITO, Ward-1, Guwahati……………………………..……...…..…..Respondent Assam-781005 Appearances by: Shri Ashok Sharma, CA, appeared on behalf of the Appellant. Shri Santosh Kumar Karnani, Addl. CIT, appeared on behalf of the Respondent. Date of concluding the hearing : May 04, 2026 Date of pronouncing the order : May 05, 2026

ORDER Per Sonjoy Sarma, Judicial Member: The present appeal filed by the assessee is directed against the order dated 05.01.2026 passed by the NFAC, Delhi [hereinafter referred to as the ‘Ld. CIT(A)] u/s 250 of the Income Tax Act, 1961 (the ‘Act’) for the assessment year 2017-18. 2. Brief facts of the case are that, assessee filed its return of income declaring total income of Rs.15,06,740/-. The case of the assessee was selected for scrutiny under CASS. During the assessment proceedings, it was observed that the turn over declared by the assessee was Rs.8,68,925/-. However, no books of accounts were maintained. The Ld. Assessing Officer observed that during the demonetisation period, cash deposits of Rs.50,64,214/- were made in bank accounts maintained by

ITA No.121/GTY/2026 Basu Dev Sharma the assessee with Bank of Baroda and Central Bank of India. The Assessing Officer called upon the assessee to explain the sources of such cash deposits. However, assessee failed to respond despite specific opportunity. Accordingly, the Assessing Officer completed the assessment u/s 143(3) of the Act and made addition of Rs.50,64,214/- u/s 69A of the Act, by determining the total income at Rs.65,70,954/-. 3. Dissatisfied with the above order, assessee went in appeal before the Ld. CIT(A), after a delay of more than 25 months. In this connection, assessee had filed an application for condonation of such delay, however, the Ld. CIT(A) dismissed the appeal on ground of delay, without adjudicating the issue on merit. 4. Aggrieved by the above order, assessee is in appeal before this Tribunal. At the time of hearing, the Ld. AR submitted that the impugned order passed by the Ld. CIT(A) is an ex-parte order, therefore, another chance may be given to the assessee, by remanding back the issue to the file of the Ld. CIT(A). 5. On the other hand, the Ld. DR supported the decision of the authorities below, and stated that the assessee has failed to submit the reasons for such delay, therefore, the Ld. CIT(A) has rightly dismissed the appeal of the assessee, by sustaining the order of the Assessing Officer. 6. We, after hearing the rival submissions of the parties, and perusing the material available on record, we find that the Ld. CIT(A) has dismissed the appeal solely on the ground of delay, without properly examining the reasons furnished by the assessee for condonation of delay, and without adjudicating the issue on merit. Considering the facts and circumstances of the case, we are of the view that the matter requires reconsideration, in the interest of justice. Accordingly, we set aside the order of the Ld. CIT(A), and restore the matter to the file of the

ITA No.121/GTY/2026 Basu Dev Sharma Ld. CIT(A), with a direction to examine the issue afresh. The assessee shall file a proper and detailed application for condonation of delay, explaining the reasons for the delay, and the Ld. CIT(A) shall consider the application for condonation of delay, in accordance with law. If the delay is condoned, the Ld. CIT(A) shall adjudicate the appeal on merit, after providing adequate opportunity of being heard to the assessee. The assessee is also directed to cooperate, and comply with all the notices issued during the appellate proceedings. 7. In the result, appeal of the assessee is allowed for statistical purposes.

Kolkata, the 05th May, 2026.

Sd/- Sd/- [Rakesh Mishra] [Sonjoy Sarma] Accountant Member Judicial Member Dated: 05.05.2026. DP, PS Copy of the order forwarded to: 1. Appellant - 2. Respondent - 3. CIT(A)- 4. CIT- , 5. CIT(DR),

//True copy// By order Assistant Registrar, Kolkata Benches