SHIVAJI BHAUSAHEB BANKAR,AURANGABAD vs. INCOME-TAX OFFICER, ( CIB), NASHIK

आदेश / ORDER PER R.S.SYAL, VP : This appeal by the assessee is directed against the order passed by the CIT(A)-2, Aurangabad on 28-08-2013 in relation to the assessment year 2005-06.

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in 1983 in the cadre of Other Ranks in corps of EME and served

till 1991. On his voluntary retirement, he came back to his village.

For sustenance of his family and in order to supplement his

income, he started doing odd jobs and other petty contracts like

supply of metal stone, murum and sand etc. Gradually, the

assessee started getting work contracts in his own name. When his

business activity grew, he engaged a firm of Chartered

Accountants in Aurangabad who started filing his return from

2003-04 onwards. It has been stated that whenever he would get

some letter or document from Income-tax Department, he was

handing over the same to his Chartered Accountant who, in turn,

was assuring that the same would be taken care of. It was only

later on when the tax demand of Rs.6,84,000/- was raised in the

best judgment assessment order framed in 2008 because of the

Chartered Accountant not attending the office of the AO, that the

assessee realized the gravity of the problem. On further probing, it

transpired that the Chartered Accountant appointed by the assessee

had not participated in the assessment proceedings for the year

under consideration as a result of which the assessment order was

passed u/s.144 of the Act determining the total income at

Rs.13,50,500/-, being, the amount deposited in the Savings bank

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account. When an appeal was filed against the assessment order

passed u/s.144, the ld. CIT(A) called for the remand report from

the AO. The assessee’s Chartered Accountant again did not appear

in the remand proceedings as well, which led to the dismissal of

the appeal. In view of the above narrated facts, it is amply clear

that the assessee, an Ex-serviceman and under-graduate belonging

to the family of farmers, who relied on his Chartered Accountant

for income-tax matters was betrayed, not only during the course of

assessment proceedings which led to the passing of the ex parte

assessment order but also during the course of the first appellate

proceedings, in which the Chartered Accountant of the assessee did

not participate in the remand proceedings. In our considered

opinion, the assessee has successfully justified the long delay in

presenting the appeal before the Tribunal. As such, the delay is

condoned and the appeal is admitted for hearing.

u/s.144 of the Act in which total cash deposited in the bank

amounting to Rs.13,50,500/- was treated as unexplained and

charged to tax. Income-tax on such amount along with interest

stood computed at Rs.6,84,900/-. Though the appeal was filed

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before the ld. CIT(A), the assessee again remained unrepresented

before the AO during the remand proceedings, a report of which

was sought by the ld. CIT(A). As such, the appeal came to be

dismissed. In the given facts and circumstances, we are of the

considered opinion that the ends of justice would meet adequately

if the impugned order is set-aside and the matter is restored to the

file of AO. We order accordingly and direct him to frame the

assessment afresh as per law after allowing a reasonable

opportunity of hearing to the assessee. The ld. AR has undertaken

that the assessee will extend full co-operation to the AO if his

prayer for second innings is accepted.

Sd/- Sd/- (PARTHA SARATHI CHAUDHURY) (R.S.SYAL) JUDICIAL MEMBER VICE PRESIDENT पुणे Pune; �दनांक Dated : 29th April, 2019 सतीश

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आदेश क� आदेश क� �ितिलिप �ितिलिप अ�ेिषत अ�ेिषत/Copy of the Order is forwarded to: आदेश आदेश क� क� �ितिलिप �ितिलिप अ�ेिषत अ�ेिषत अपीलाथ� / The Appellant; 1. ��यथ� / The Respondent; 2. 3. The CIT(A)-2, Aurangabad 4. The Pr.CIT-2,Aurangabad िवभागीय �ितिनिध, आयकर अपीलीय अिधकरण, पुणे 5. “SMC” / DR ‘SMC’, ITAT, Pune; गाड� फाईल / Guard file. / True copy // 6.

आदेशानुसार आदेशानुसार/ BY ORDER, आदेशानुसार आदेशानुसार

// True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण ,पुणे / ITAT, Pune

Date 1. Draft dictated on 29-04-2019 Sr.PS 2. Draft placed before author 29-04-2019 Sr.PS 3. Draft proposed & placed JM before the second member 4. Draft discussed/approved JM by Second Member. 5. Approved Draft comes to Sr.PS the Sr.PS/PS 6. Kept for pronouncement on Sr.PS 7. Date of uploading order Sr.PS 8. File sent to the Bench Clerk Sr.PS 9. Date on which file goes to the Head Clerk 10. Date on which file goes to the A.R. 11. Date of dispatch of Order. *