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Facts
The assessee, a non-filer, had their assessment reopened under Section 147 based on information indicating escaped income. The Assessing Officer completed the assessment, making additions related to variations in the value of a Mercedes car and property. The Ld. CIT(A)/NFAC dismissed the assessee's subsequent appeal ex-parte due to non-compliance, which the assessee attributed to the father's cancer treatment.
Held
The Tribunal acknowledged the assessee's non-compliance despite opportunities but, considering the circumstances (father's illness) and in the interest of justice, decided to restore the matter to the Ld. CIT(A)/NFAC. The CIT(A)/NFAC was directed to grant one final opportunity to the assessee to present their case on merits, with a condition that the assessee must appear without seeking adjournments.
Key Issues
Whether the CIT(A) was justified in dismissing the appeal ex-parte for want of prosecution and if the assessee should be granted another opportunity to present their case due to genuine reasons for non-compliance.
Sections Cited
147, 148, 143(2), 142(1), 144B
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, PUNE BENCH “A”, PUNE
Before: SHRI R. K. PANDA & MS. ASTHA CHANDRA
This appeal filed by the assessee is directed against the ex-parte order dated 28.02.2025 of the Ld. CIT(A) / NFAC, Delhi relating to assessment year 2018-19.
Although a number of grounds have been raised by the assessee, however, these all relate to the ex-parte order of the Ld. CIT(A) / NFAC dismissing the appeal of the assessee for want of prosecution and thereby sustaining the various additions made by the Assessing Officer.
Facts of the case, in brief, are that the assessee is an individual and a non- filer. On the basis of information received from the Insight portal that the income of the assessee has escaped assessment, the Assessing Officer, after recording reasons, reopened the assessment as per provisions of section 147 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’). Subsequently notice u/s 148 of the Act was issued on 31.03.2022. The assessee in response to the same filed the return of income on 28.04.2022 declaring total income of Rs.5,24,220/-. Subsequently the Assessing Officer issued statutory notices u/s 143(2) and 142(1) of the Act. After considering the various replies submitted by the assessee from time to time, the Assessing Officer completed the assessment u/s 147 r.w.s. 144B of the Act determining the total income of the assessee at Rs.84,83,220/- wherein he made addition of Rs.56,58,999/- on account of variation in the value of Mercedes car and Rs.23 lakhs on account of variation in the value of the property.
Since, the assessee despite number of opportunities granted by the Ld. CIT(A) / NFAC did not make any submission, the Ld. CIT(A) / NFAC dismissed the appeal filed by the assesse for want of any evidence.
Aggrieved with such order of the Ld. CIT(A) / NFAC, the assessee is in appeal before the Tribunal.
The Ld. Counsel for the assessee at the time of hearing submitted that since the assessee’s father was suffering from cancer, the assessee was busy for his treatment and therefore, could not make due compliance before the Ld. CIT(A) / NFAC. He submitted that in the interest of justice, the assessee should be given an opportunity to substantiate his case by filing the requisite details.
The Ld. DR on the other hand while opposing the arguments advanced by the Ld. Counsel for the assessee submitted that despite 4 opportunities granted by the Ld. CIT(A) / NFAC, the assessee never bothered to respond, therefore, the order of the Ld. CIT(A) / NFAC should be upheld.
We have heard the rival arguments made by both the sides, perused the orders of the Assessing Officer and the Ld. CIT(A) / NFAC and the paper book filed on behalf of the assessee. It is an admitted fact that despite 4 opportunities granted by the Ld. CIT(A) / NFAC, there was no compliance from the side of the assessee for which he was constrained to pass the order ex-parte. Further in absence of any evidence to substantiate his case, the Ld. CIT(A) / NFAC sustained the various additions made by the Assessing Officer. Since it is the submission of the Ld. Counsel for the assessee that given an opportunity, the assessee is in a position to substantiate his case by filing the requisite details, therefore, considering the totality of the facts of the case and in the interest of justice, we deem it proper to restore the issue to the file of the Ld. CIT(A) / NFAC with a direction to grant one more opportunity to the assessee to substantiate his case by filing the requisite details and decide the appeal on merit by passing a speaking order as per fact and law. The assessee is also hereby directed to appear before the Ld. CIT(A) / NFAC on the appointed date and make his submissions, if any, without seeking any adjournment under any pretext failing which the Ld. CIT(A) / NFAC shall be at liberty to pass appropriate order as per law. We hold and direct accordingly. The grounds raised by the assessee are accordingly allowed for statistical purposes.
In the result, the appeal filed by the assessee is allowed for statistical purposes.
Order pronounced in the open Court on 26th August, 2025.
Sd/- Sd/- (ASTHA CHANDRA) (R. K. PANDA) JUDICIAL MEMBER VICE PRESIDENT पुणे Pune; दिन ांक Dated : 26th August, 2025 GCVSR आदेश की प्रतितिति अग्रेतिि/Copy of the Order is forwarded to: अपीलार्थी / The Appellant; 1. 2. प्रत्यर्थी / The Respondent 3. The concerned Pr.CIT, Pune 4. DR, ITAT, ‘A’ Bench, Pune गार्ड फाईल / Guard file. 5. आदेशानुसार/ BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अधिकरण ,पुणे / ITAT, Pune
S.No. Details Date Initials Designation 1 Draft dictated on 19.08.2025 Sr. PS/PS 2 Draft placed before author 25.08.2025 Sr. PS/PS Draft proposed & placed before the 3 JM/AM Second Member Draft discussed/approved by Second 4 AM/AM Member 5 Approved Draft comes to the Sr. PS/PS Sr. PS/PS 6 Kept for pronouncement on Sr. PS/PS 7 Date of uploading of Order Sr. PS/PS 8 File sent to Bench Clerk Sr. PS/PS Date on which the file goes to the Head 9 Clerk 10 Date on which file goes to the A.R. 11 Date of Dispatch of order