PRAVEEN AGARWALLA,TEZPUR vs. ASSESSING OFFICER, GUWAHATI

The assessee is in appeal before the Tribunal raising the following grounds of appeal:

Brief facts of the case are that the assessee is an individual and as per the information available with the Department, the assessee had made cash deposits in YES Bank amounting to ₹1,03,73,000/- and ₹1,02,00,000/- in HDFC Bank Limited. However, for the AY 2018-19 the assessee had not filed his return of income. Accordingly, the assessee’s case was reopened u/s 147 of the Act and a notice u/s 148 of the Act was issued on 28.03.2023, requiring the assessee to file the return of income, and in response to which the return showing total income of ₹12,74,227/-was filed. Subsequently, statutory notices were issued to the assessee along with the questionnaire and the assessee submitted the reply to the queries raised by the Assessing Officer (hereinafter referred to as Ld. 'AO'). Thereafter, the Ld. AO completed the assessment u/s 147 r.w.s. 144B of the Act vide order dated 14.03.2024 determining the total income of the assessee at ₹11,17,650/-. The Ld. AO initiated penalty proceedings u/s 270A of the Act and imposed penalty amounting to ₹3,04,458/- for under-reporting of income in consequence of misreporting. Aggrieved with the penalty order, the assessee filed an appeal before the Ld. CIT(A) who dismissed the appeal of the assessee on the ground of non-prosecution.

Aggrieved with the order of the Ld. CIT(A), the assessee has filed the appeal before the Tribunal.

Rival contentions were heard and the submissions made have been examined.

The Ld. AR submitted that the returned income was accepted by the Ld. AO and no addition was made yet penalty had been imposed. It was stated that the income returned in response to the notice under section 148 of the Act was accepted by the Ld. AO. The assessee could Praveen Agarwalla. not file an adjournment petition before the Ld. CIT(A) and the appeal was dismissed on account of non-prosecution it was submitted that in the interest of justice, one more opportunity may be provided so that the assessee could justify that the penalty was not liable to be imposed.

We have considered the submissions made, gone through the facts of the case and perused the record and the order of the Ld. CIT(A). After examining the facts of the case and the law, we deem it appropriate in the interest of justice and fair play, one more opportunity may be provided. Therefore, by set aside the order of the Ld. CIT(A) and restore the appeal to him for disposal of the grounds of appeal taken by the assessee on merit by passing a speaking order. Needless to say, the assessee shall be given a reasonable opportunity of being heard to make any further submission be wants to make in support of the grounds of appeal and shall not seek unnecessary adjournments and rule 46A of the I.T. Rules, 1962 shall also be followed and an opportunity of being heard may be provided to the Ld. AO, if required. Accordingly, the grounds taken by the assessee in the appeal are partly allowed for statistical purposes.

In the result, the appeal filed by the assessee is partly allowed for statistical purposes. Order pronounced in the open Court on 13th May, 2026. [Sonjoy Sarma] [Rakesh Mishra] Judicial Member Accountant Member Dated: 13.05.2026 Bidhan (Sr. P.S.)

CIT(A)-NFAC, Delhi.

CIT-

CIT(DR), Guwahati Benches, Guwahati.

Guard File. //// By order