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Facts
The assessee, a beer shoppe owner, did not file an income tax return for AY 2017-18. The Assessing Officer made additions under section 144 based on cash deposits during demonetization. The CIT(A) confirmed these additions. The assessee failed to appear before the Tribunal.
Held
The Tribunal noted that the assessee failed to appear despite valid notices, indicating a lack of interest. However, to provide a fair opportunity, the case was remitted back to the CIT(A) for a fresh adjudication on merits.
Key Issues
Whether the assessee is entitled to another opportunity to present their case before the CIT(A) given their non-appearance before the Tribunal and previous non-compliance.
Sections Cited
250, 144, 69A, 143(3)
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Income Tax Appellate Tribunal, PUNE BENCHES “SMC”, PUNE
Before: DR.MANISH BORAD
आदेश / ORDER
The captioned appeal at the instance of assessee pertaining to A.Y. 2017-18 is directed against the order dated 24.02.2025 of National Faceless Appeal Centre (NFAC) Delhi passed u/s.250 of the Income-tax Act, 1961 (hereinafter also called ‘the Act’) arising out of Assessment Order dated 27.12.2019 passed u/s.144 of the Act.
When the case was called for, none appeared inspite of being served with valid notice. In the past also, assessee failed to appear on 11.06.2025 and 22.07.2025. It prima-facie indicates that assessee is not interested in to prosecute its appeal. I therefore proceed to adjudicate the appeal with the assistance of ld. Departmental Representative and available records.
Assessee has raised two grounds against the finding of ld.CIT(A) confirming the addition of Rs.12,30,000/- u/s.69A of the Act and the disallowance of Rs.68,270/- incurred as business expenditure.
I have heard the ld. Departmental Representative and perused the record placed before me. Assessee is an individual and no return of income has been filed for A.Y. 2017-18 as observed by ld. Assessing Officer (AO). Ld. AO based on the information about deposit of cash during the demonetization period issued statutory notices for carrying out the assessment proceedings. However, assessee failed to complied and ld. AO completed the Best Judgment Assessment u/s.144 of the Act making various additions amounting to Rs.19,50,314/-. Aggrieved assessee preferred appeal before ld.CIT(A) and in the statement of facts assessee has submitted that the assessee is carrying the business of Retail Beer Shoppe and sales are in cash and regular books of accounts are maintained. Eventhough the appeal filed before ld.CIT(A) was delayed but still ld.CIT(A) condoned the delay and proceeded to adjudicate the appeal of the assessee on merits. However, assessee did not comply with the notices and also no return was filed in response to notices and ld.CIT(A) therefore giving finding on merits confirmed the addition made by ld. Assessing Officer.
Before me, ld. DR supported the order of ld.CIT(A). I note that the books of accounts of the assessee are audited and ld.CIT(A) has also referred to the Audit Report in the impugned order and in absence of the assessee’s submission to the queries raised by the ld.AO as well as the ld.CIT(A) the impugned additions have been made.
Under the given facts and circumstances of the case and in the larger interest of justice and being fair to both the parties, I deem it proper to afford one more opportunity to the appellant assessee to go before ld.CIT(A) by remitting the issues raised in the instant appeal to the file of ld.CIT(A). Assessee is directed to furnish all necessary details and replies in support of its contentions and grounds of appeal raised on merits. Needless to mention that ld.CIT(A) shall grant reasonable opportunity in the set aside proceedings. 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 the effective grounds of appeal raised by the assessee are allowed for statistical purposes.
In the result, appeal of the assessee is allowed for statistical purposes.
Order pronounced on this 22nd day of September, 2025.