MAHALAXMI TRADERS,BELGAUM vs. ITO WARD 2, BELGAUM

PER PAVAN KUMAR GADALE, JUDICIAL MEMBER:

The assessee has filed the appeal against the order of NFAC/CIT(A) passed u/sec 143(3) and u/sec 250 of the Income Tax Act. The assessee has raised the grounds of appeal challenging the ex-parte order of the CIT(A) sustaining the addition u/sec 69A of the Act made by the Assessing Officer.

Rs. 10,67,679/- and subsequently the case was selected for scrutiny under the CASS and Notice u/sec. 143(2) and 142(1) of the Act were issued and duly served on the assessee. The Assessing Officer (A.O) called for details of sources of cash deposits made during the demonetization period along with evidences, and also details of long term and short term capital gains, month wise purchases and sales, and to produce cash book, purchase and sales register and the assessee has complied with the information. On perusal of the information, Assessing Officer found that the assessee has disclosed lowest net profit and cash deposits does not substantiate with the turnover data. The assessee has made cash deposits in the Maharashtra Co-operative Bank and the assessee was called to explain the deposits with supporting evidences and there was partial compliance, Finally the A.O was not satisfied with the explanations and made addition of unexplained cash deposits u/sec69A of the Act of Rs.1,86,02,000/- and assessed the total income of Rs.1,96,69,680/- and passed the order u/sec. 143(3) of the Income Tax Act dated 30-12-2019. 3. Aggrieved by the order, the assessee has filed an appeal with the CIT(A). Whereas the CIT(A) has considered the grounds of appeal, statements 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 confirmed the action of the AO and dismissed the appeal. Aggrieved by the order of the CIT(A), the assessee has filed the appeal before the Hon'ble Tribunal.

MAHALAXMI TRADERS

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 on various dates referred at Para 5 of the order but there was no response. Whereas the assessee has raised grounds of appeal challenging the addition u/sec69 Aof the Act 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, We set 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 adequate opportunity of hearing and shall cooperate in submitting the information for early disposal of appeal. And the grounds of appeal of the assessee are allowed for statistical purposes.

Satish Kumar Madishetty ITA 278/PAN/2025 MAHALAXMI TRADERS

आदेश की प्रतिलिपि अग्रेपिि / Copy of the Order forwarded to : अपील र्थी / The Appellant. 1. प्रत्यर्थी / The Respondent.