PURUSHOTTAM VISHWANATH PARKAR ,KUDAL vs. INCOME TAX OFFICER WARD 1, KUDAL

At the time of hearing, it was brought to the knowledge that there is a delay in filing the appeal before Hon'ble Tribunal and the assessee has filed the affidavit for condonation of delay. On consideration of facts and information mentioned in the affidavit, there is a reasonable cause explained and the Ld. DR. has no specific objections. Accordingly, the delay is condoned and the appeal is admitted.

The brief facts of the case are that, the Assessing Officer (A.O) has received information that the assessee has made cash deposits in the bank accounts and TDS was deducted in respect of rent, payment to contractor, and interest on securities in F.Y.2017-18 and the assessee has not filed the return of income for the A.Y. 2018-19. The Assessing Officer (A.O) has reason to believe that the income has escaped assessment and with due procedure of law the AO has issued notice u/sec 148 of the Act and the assessee has filed the return of income. Further Notice u/sec142(1) of the Act was issued to submit the details and information in support of the claims and the assessee has submitted the audited financial statements and explanations. Whereas the A.O has dealt on the information and find that the assessee could not explain the sources of cash deposits to the extent of Rs.62,52,758/- and made addition of unexplained money u/sec69A of the Act of Rs.658,75,208/- and passed the order u/sec147 rws144B of the Act dated 27.03.2023.

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. None appeared on behalf of the assessee.

We heard the Ld.DR submissions and perused the material on record. Prima facie 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 dismiss the appeal ex-parte confirming the action of the Assessing Officer. Whereas the CIT(A) has issued four notices of hearing and provided ample opportunities to the assessee refereed at Para 3 of the order but there was no response. Whereas the assessee has raised grounds of appeal challenging the addition 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 and principles of natural justice, 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 issues 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.

In the result, the appeal filed by the assessee is allowed for statistical purposes.