MAHADEV ZITU MUNDALE,NAGPUR vs. ITO WARD 3(4), NAGPUR, NAGPUR

The brief facts of the case are that, the Income Tax Department has received information that the assessee has made cash deposits in the bank account maintained with the Bank of Baroda in the F.Y. 2018-19 and the assessee has not filed the return of income for the A.Y. 2019-20. The Assessing Officer (A.O) has reason to believe that the income has escaped assessment and after fallowing the due process of law issued notice u/sec148 of the Act and the assessee has filed the return of income for A.Y 2019-20 disclosing a total income of Rs.2,27,380/- Further, notice under Section 143(2) and 142(1) of the Act and a show cause notice was issued to explain the sources of cash deposits and business transactions and there was no compliance by the assessee. The A.O find that the assessee has not made submissions on the disputed issues in spite of providing adequate opportunities of hearing and finally the A.O considering the information available on record has invoked the provisions of section 144 of the Act and made addition of unexplained cash deposits of Rs.28,42,182/- under Section 69A of the Act and assessed the total income of Rs.30,69,562/- and passed the order under Section 147r.w.s1444 r.w.s. 144B of the Act dated 12.01.2024. 3. 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 AO 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 wanton act or deliberate act and the assessee has a good case of 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).

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. Whereas the CIT(A) has issued notices on various dates referred in the order but there was no response. Whereas the assesse has raised grounds of appeal challenging the addition made by the Assessing Officer 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 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 assesse are allowed for statistical purposes

In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the open Court on 13th Oct., 2026. PAVAN KUMAR GADALE (JUDICIAL MEMBER) Pune, Dated: 13th October, 2026 vr/- आदेशकीप्रतितितिअग्रेतिि / Copy of the Order forwarded to : अिीिार्थी / The Appellant. 1. प्रत्यर्थी / The Respondent.

The Pr. CIT concerned. 4. तिभागीय प्रतितिति, आयकर अिीिीय अतिकरण, “SMC” बेंच, नागपूर / DR, ITAT, “SMC” Bench, Nagpur. गार्डफ़ाइि / Guard File. 5. ////