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Facts
The assessee individual engaged in liquor business declared income of Rs. 26,720/-. Information from Form 26AS revealed purchases exceeding those shown in the profit and loss account. The Assessing Officer made an addition for unexplained purchases and assessed income accordingly.
Held
The Tribunal noted that the assessee was not granted a personal hearing by the First Appellate Authority. Therefore, the Tribunal set aside the order of the CIT(A) and remitted the matter back for fresh adjudication.
Key Issues
Whether the assessee was denied a reasonable opportunity of being heard by the CIT(A), and if so, whether the matter should be remanded for fresh adjudication.
Sections Cited
143(3), 144B, 69C, 250(6)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, PUNE BENCHES “B”, PUNE
Before: DR.MANISH BORAD & SHRI VINAY BHAMORE
आदेश / ORDER
PER DR. MANISH BOARD, ACCOUNTANT MEMBER :
The captioned appeal at the instance of assessee pertaining to A.Y. 2018-19 is directed against the order dated 30.09.2025 framed by National Faceless Appeal Centre, Delhi arising out of Assessment Order dated 24.05.2021 passed u/s.143(3) r.w.s.144B of the Income Tax Act, 1961.
We have heard the rival contentions and perused the record placed before us. We note that the assessee is an individual and engaged in the liquor business. Income of Rs.26,720/- declared in the return of income for A.Y. 2018-19 furnished on 05.10.2018. Subsequently, based on the information about Tax collected at source appearing in Form No.26AS, it was noticed that the purchases shown therein are more than the purchases shown in the profit and loss account. After the case being selected for scrutiny through CASS followed by validly serving statutory notices, ld. Assessing Officer carried out the assessment proceedings and the assessment framed u/s.143(3) r.w.s.144B of the Act. Ld. Assessing Officer made addition for unexplained purchases u/s.69C of the Act at Rs.92,19,085/- and assessed the income at Rs.92,45,805/-.
Dissatisfied with the addition made by ld. Assessing Officer, assessee filed appeal before ld.CIT(A) but apart from filing an application for condonation of delay and statement of facts assessee could not furnish any submission in support of its grounds of appeal inspite of being provided sufficient opportunity. Ld.CIT(A) dismissed the appeal for non- prosecution by observing as under :
“6.5 In light of the above, the appellant's failure to respond, furnish evidence, or substantiate their grounds demonstrates a lack of bona fide effort to prosecute the appeal. The appellant's neglect to cooperate and substantiate their case undermines the principles of natural justice and fair adjudication. Accordingly, in the absence of any substantive response or evidence, and considering the appellant's apparent disinterest in pursuing the appeal, the same is deemed devoid of merit and is hereby "dismissed".”
Before us, during the course of hearing, ld. Counsel for the assessee submitted that despite a specific request for providing personal hearing through video conference, the same was not granted by the First Appellate authority. Therefore, a prayer is made for providing one more opportunity to the assessee to furnish evidence and details to substantiate the grounds of appeal.
5. Ld. Departmental Representative supported the order of ld.CIT(A).
Under these given facts and circumstances, we in the larger interest of justice and being fair to both the parties deem it appropriate to remit the issues raised in the instant appeal to the file of ld.CIT(A) for afresh adjudication and to pass a speaking order as contemplated u/s.250(6) of the Act. Needless to mention that ld.CIT(A) shall afford reasonable opportunity to the assessee. Assessee is directed to update latest email id and contact detail on ITBA portal. Assessee is also directed to remain vigilant and not to take adjournment unless otherwise required for reasonable cause. Impugned order is set aside and effective grounds of appeal raised by the assessee are allowed for statistical purposes.
In the result, appeal filed by the assessee is allowed for statistical purposes.
Order pronounced on this 28th day of November, 2025.