SANDEEP VIMALCHAND GADIA,BENGALURU vs. INCOME TAX OFFICER, WARD-5(2)(5), BENGALURU

This appeal filed by the assessee against the Order passed by the National Faceless Appeal Centre (NFAC), vide DIN and Order No.ITBA/APL/S/250/2024-25/1070643328(1) dated 26.11.2024, on the following grounds of appeal:

Aggrieved from the above Order, assessee filed appeal before the Tribunal. The learned Counsel for the assessee submitted that the assessee is an individual and is proprietor of Kavita Agency dealing in Handloom Sarees, buying from Surat and also had contract receipts which has been declared in Income Tax returns filed on 20.03.2015 with acknowledgement No.000511. However, the AO has wrongly noted that the assessee has not filed return of income and further submitted that the assessee is in the business of Handloom Sarees and sale of saree is only for cash transactions. Assessee has declared sales and purchase of saree to the commercial tax department by virtue of VAT 100 (monthly return) and the details are lying with the assessee. He submitted that the notices sent by the Revenue authorities on the email provided were Page 4 of 5 never seen by the assessee and there was no intention to disregard the notice issued by both the revenue authorities. The learned Counsel for the assessee undertook that if a chance is given to the assessee, he shall comply with all the notices and provided new email ID which is S8123909999@gmail.com.

Learned DR relied on the Order of the AO and submitted that during the course of proceedings before both the authorities below in spite of giving several opportunities assessee did not respond to the notices. As per the submission made by the assessee, the return filed on 20.03.2015 which is belated return and objected for giving further chances to the assessee.

Considering the rival submissions, we noted that during the course of reassessment proceedings, assessee has not responded to the notices issued by the AO as well as the notices issued by the CIT(A) and submitted by the learned Counsel for the assessee that the notices sent on the email provided was never seen by the assessee and the learned Counsel for the assessee has provided new email ID. Considering the facts and circumstances of the case and in the interest of justice, we are remitting the issue back to the file of the AO for denovo consideration subject to cost of Rs.25,000/-. Assessee has to pay challan under the head “other receipts miscellaneous code 0075” and submit the proof of payment to the AO. The AO is directed to provide reasonable opportunity of being heard to the assessee and notice should be sent on the above email provided by the ld. AR. The assessee has to produce necessary documents as required by the Revenue for speedy disposal of the appeal.