SURESH DHONDIBA DHOTRE,PUNE vs. ITO WD-8(1), PUNE

At the time of hearing, the Ld.AR submitted that there is a delay in filing the appeal before Hon'ble Tribunal and the assessee has filed the affidavit of the assessee 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 assessee has sold immovable property of value of Rs. 60,10,000/- during the F.Y. 2017-18 and the assessee has not filed the return of income for the A.Y. 2018-19. The A.O. has reason to believe that the income has escaped assessment and passed the order u/sec 148A(d) of the Act dated 04.04.2022 and issued notice under Section 148 of the Act on 5.04.2022 and there was no compliance by the assessee. Subsequently, the A.O has issued notice under Section 142(1) of the Act to explain the property transaction and there was no compliance. Whereas the A.O considering the information available on record has invoked the provisions of Article 144 of the Act and made addition of entire sale consideration as short term capital gains and assessed the total income of Rs.60,10,000/- and passed the order u/sec 147 r.w.s. 144 and 144B of the Income Tax Act dated 15.02.2024. 4. Aggrieved by the order, the assessee has filed an appeal with the CIT(A).Whereas the CIT (A) has considered grounds of appeal, statement of facts, finding of the A.O and has issued notice of hearing and since there was no compliance, CIT(A) considering the information on record has confirmed the action of the Assessing officer and dismissed the assessee appeal. Aggrieved by the order of the CIT(A), the assessee has filed appeal with 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 the Ld.AR mentioned that non-compliance of notices before the CIT(A) is not a deliberate or wanton act and the assessee has a good case on merits and shall substantiate with material evidences and prayed for an opportunity before the Lower authorities. Per contra, the Ld.DR supported the order of CIT(A).

We heard the rival 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. The CIT(A) has issued notices referred at Para 4 of the order but there was no response. Whereas the assesse 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, 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, set aside the order of the CIT(A) and remit the disputed issue to the file of the CIT(A) to adjudicate afreshand the assessee should be provided adequateopportunity of hearing and shall cooperate in submitting the information for early disposal of appeal. And the grounds of appeal of the assesse are allowed for statistical purposes.

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

The Pr. CIT concerned. 4. तिभागीयप्रतितिति,आयकरअिीिीयअतिकरण, “B” बेंच, पुणे/ DR, ITAT, “B” Bench, Pune. गार्डफ़ाइि / Guard File. 5. ////