BALIRAM KRISHNA DARADE,SOLAPUR vs. INCOME TAX OFFICER- WARD2(3),SOLAPUR, SOLAPUR

The brief facts of the case are that, the Income Tax Department has received information through Insight Portal under Non-filing of Return (NMS) in accordance with the risk management strategy formulated by the CBDT (Board) that the assessee has made cash deposit of Rs. 3,00,000/- and time deposit of Rs. 47,06,099/- in the bank in F.Y.2015-15 and the 2 Baliram Krishna Darade

The Assessing officer(A.O) has reason to believe that the income has escaped assessment and issued notice to the assessee under Clause (b) of Section 148A of the Income Tax Act but there was no compliance, and with the prior approval from the Competent Authority, the order u/s 148A(d) of the I.T. Act was passed on 05/04/2022 and accordingly notice u/s. 148 of the Income Tax Act, 1961 was issued to the assessee on the same date i.e 5.04.2022. Further notice u/sec 142(1) of the Act was issued from time to time calling for explanations in respect of cash deposits and time deposits, but there was no compliance. The A.O has also issued show cause to the assessee but there was no response. 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 issued notice u/sec 133(6) of the Act on the banks calling for details of financial transactions carried out by the assessee. Finally, the AO has made addition of Rs. 3,00,000/- under Section 69A of the Act and Rs. 47,06,099/- under Section 69 of the Act and assessed the total income of Rs. 50,06,099/- and passed the order u/sec 147 r.w.s 144 and r.w.s 144B of the Act dated 06.01.2024. 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 by the assessee then, CIT(A) considering the information on record has confirmed the action of the AO and dismissed the 3 Baliram Krishna Darade

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).

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. Whereas the CIT(A) has issued notices on various dates referred at Para 4 of the order but there was no response. Whereas the assesse has raised grounds of appeal challenging the additions 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, we set aside the order of the CIT(A) and remit the disputed issue to 4 Baliram Krishna Darade

In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the open court on 16th October, 2026. (PAVAN KUMAR GADALE) JUDICIAL MEMBER Pune, Dated: 16th October, 2026 Abhishek Mohan आदेशकीप्रतितितिअग्रेतिि / Copy of the Order forwarded to : अिीिार्थी / The Appellant. 1. प्रत्यर्थी / The Respondent.

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