LALIT NANDLAL SAKHARE,PUNE vs. ITO, WARD - 7(3), PUNE

Since the issues involved in these two appeals are common, identical and similar and for the sake of convenience, we shall take up ITA 481/PAN/2026 for the Assessment Year 2015-16 as a lead case and facts narrated.

The brief facts of the case are that, the income tax department has received information from the Joint Sub-registrar, Haveli pane that the assessee has sold immovable property value of Rs. 95,60,000/- in the financial year 2014-15 and the assessee has not filed the return of income for A.Y.2015-16.. The Assessing Officer has reason to believe that the income has escaped assessment and has followed the provisions of the Act and passed the order u/sec 148A (d) of the Act on 04.04.2022 and issued notice u/sec 148 of the I.T. Act and there was no response to the notice issued to the assessee. Further, the notice issued u/sec 142(1) of the Act on various dates and there was no compliance. Finally the AO has issued two show cause notices and the assessee has filed the reply with partial details and information The.AO has dealt on the information and explanations of the assessee on the credits in the bank accounts and found that the assessee could not explain credits aggregating to Rs.9,40,611/- with documentary evidences in spite of providing adequate opportunities made finally the A.O made addition of unexplained money u/sec69A of the Act and assessed the total income of Rs.9,40,611/- and passed the order u/sec 147 r.w.s 144 r.w.s 144B of the Income Tax Act dated 29.02.2024.

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 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 Assessing officer and dismissed the appeal. Aggrieved by the order of the CIT(A), the assessee has filed the appeal before the Hon'ble Tribunal.

At the time of hearing, the Ld. A.R. submitted that the CIT(A) has erred in confirming the action of the AO overlooking the information of the assessment proceedings. The Ld.AR mentioned that non-compliance of notices before the CIT(A) is not a wanton act but the circumstances beyond the control of the assessee. Further, Ld A.R. submitted that the assessee has a good case on merits and has filed an application for admission of additional evidence under Rule 29 Of ITAT rules and also the Ld.AR made submissions on the validity of issue of notice u/sec148 of the Act and substantiated the submissions with paper book. Per contra, the Ld. DR supported the order of the CIT(A). 6. We heard the rival submissions and perused the material on record. Prima facie, the 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 dismissed the appeal ex- parte confirming the action of the AO. Whereas the CIT(A) has issued notices of hearing on various dates referred at Page 14 Para 5 of the CIT(A) order but there was no response and thus, the CIT(A) came to the conclusion that the assessee is not interested and decided the appeal based on the information available on record. The Ld.AR mentioned that the non- compliance to the notices in the appellate proceedings was neither deliberate nor intentional, but circumstances beyond the control of the assessee. Whereas the assessee has raised grounds of appeal challenging in the addition u/sec69A of the Act made by the AO and there could be various reasons for non-appearance which cannot be overruled. Further the Ld.AR made submissions on the validity of issue of notice u/sec148 of the Act for the first time and which was not raised before the CIT(A). We find the assessee has raised sole ground of appeal before the CIT (A) referred at Page 14 Para 3 @3.1 of the CIT(A) order-“Due to faceless assessment we were unable to explain our transactions properly to the assessing officer but none of the unexplained transaction is my income entries are just transfer of amount and some are reversal of amount received in my account” . Further due to non compliance of notice of hearings by the assessee, the CIT(A) has dismissed the appeal ex parte. Therefore, we considering the facts, circumstances, submissions and principle of natural justice shall provide with one more opportunity of hearing to the assessee to substantiate the case and to explain the transactions with the evidences and information. Accordingly, we set aside the order of the CIT(A) and remit the disputed issue along with the evidences filed before the Hon’ble tribunal to the file the CIT(A) for adjudication afresh on merits and also the CIT(A) to adjudicate the ground of appeal raised by the assessee on the validity of issue of notice u/sec148 of the Act for the first time and pass a speaking order. Further the assessee should be provided adequate opportunity of hearing and shall cooperate in considering the information for earlier disposal of appeal. And we allow the grounds of appeal of the assessee for statistical purposes. 7. In the result, appeal filed by the Assessee is allowed for statistical purposes. ITA No. 482/PUN/2026 (A.Y. 2016-17) 8.As the facts and circumstances in this appeal is identical to ITA481/PUN/2026 for the A.Y. 2015-16 (except variance in figures) and the decision rendered in above paragraphs 6 & 7 would apply mutatis mutandis for this appeal also. Accordingly, the grounds of appeal of the assessee are allowed for statistical purpose. 9. In the result, the two appeals filed by the assessee are allowed for statistical purpose. Order pronounced in the open court on the day of 03rd June, 2026. Sd/- Sd/- MANISH BORAD PAVAN KUMAR GADALE (ACCOUNTANT MEMBER) (JUDICIAL MEMBER) Pune; दिन ांक / Dated: 03rd June, 2026. Abhishek mohan आिेश की प्रतितिति अग्रेतिि / Copy of the Order forwarded to : अिीि र्थी / The Appellant. 1. प्रत्यर्थी / The Respondent. 2. 3. The Pr. CIT concerned. 4. तिभ गीय प्रतितनति, आयकर अिीिीय अतिकरण, “SMC” बेंच, पुणे /DR, ITAT, “SMC” Bench, Panaji. ग र्ड फ़ इि / Guard File. 5. //True Copy// आिेश नुस र / BY ORDER,