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Facts
The assessee filed his return of income on 21.04.2016. The Assessing Officer initiated reassessment proceedings under section 147 as the assessee entered into a sale agreement for a consideration much higher than the market value and received a portion of the payment without explanation. The assessee failed to respond to notices, leading to an ex-parte assessment.
Held
The Tribunal restored the issue to the file of the CIT(A)/NFAC, directing them to grant one final opportunity to the assessee to present their case. The assessee is also directed to appear on the appointed date without seeking adjournment.
Key Issues
Whether the assessee should be given another opportunity to present their case before the CIT(A)/NFAC after the appeal was dismissed for non-prosecution.
Sections Cited
147, 148, 143(2), 142(1), 144, 144B, 250(6)
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 13.11.2024 of the Ld. CIT(A) / NFAC, relating to assessment year 2016-17.
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 in dismissing the appeal of the assessee for non-prosecution and thereby confirming the various additions made by the Assessing Officer.
Facts of the case, in brief, are that the assessee is an individual and derives income from business and other sources. He filed his return of income on 21.04.2016 declaring total income of Rs.3,00,250/- and agricultural income of Rs.5,50,000/-. On the basis of information available with the department that the assessee has entered into a sale agreement with M/s. Swatik Trade Pvt. Ltd. on 12.08.2015, according to which the sale consideration is Rs.5,57,96,500/- as against the market value of Rs.3,19,20,000/- and the assessee has received Rs.55 lakhs from M/s. Swatik Trade Pvt. Ltd. which was not explained by the assessee, reopening proceedings were initiated as per provisions of section 147 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) and accordingly, notice u/s 148 of the Act was issued to the assessee on 30.03.2021. Subsequently, statutory notices u/s 143(2) and 142(1) of the Act were issued and served on the assessee. Since the assessee did not respond to the various notices issued by the Assessing Officer, he completed the assessment u/s 147 r.w.s. 144 r.w.s. 144B of the Act determining the total income of the assessee at Rs.59,13,610/- as against the returned income of Rs.3,00,250/-.
Since, despite number of opportunities granted by the Ld. CIT(A) / NFAC the assessee did not respond to any of the notices issued by the Ld. CIT(A) / NFAC, following the decision of Hon’ble Supreme Court in the case of CIT vs. B.N. Bhattacharjee (1979) 118 ITR 461 (SC) and various other decisions dismissed the appeal filed by the assesse.
Aggrieved with such order of the Ld. CIT(A) / NFAC, the assessee is in appeal before the Tribunal.
The Ld. Counsel for the assessee submitted that during the course of assessment proceedings the assessee had given a copy of the order passed u/s 147 r.w.s. 144B of the Act in case of Mahadeo Narayan Bhujbal, one of the co-owners where under similar circumstances no addition was made. He submitted that after filing of the return, request was made to the Assessing Officer for supply of reasons for reopening of the assessment. However, the reasons were not supplied to the assesse, therefore, the objections could not be filed against the reopening proceedings. He submitted that during the course of appellate proceedings the Ld. CIT(A) / NFAC simply dismissed the appeal filed by the assessee on account of non-prosecution but has not decided the appeal on merit as per provisions of section 250(6) of the Act. He accordingly submitted that in the interest of justice, the assessee should be given an opportunity to substantiate his case by filing the requisite documents.
The Ld. DR on the other hand strongly objected to the arguments advanced by the Ld. Counsel for the assessee. Referring to the orders of the Assessing Officer as well as the Ld. CIT(A) / NFAC, he submitted that despite number of opportunities granted by both the authorities below the assessee never bothered to respond to those notices. Therefore, under these circumstances the action of the Ld. CIT(A) / NFAC in upholding the addition made by the Assessing Officer should be confirmed and the grounds raised by the assessee be dismissed.
We have heard the rival arguments made by both the sides, perused the orders of the Assessing Officer and Ld. CIT(A) / NFAC and the paper book filed on behalf of the assessee. It is an admitted fact that there was no compliance to the notices issued by the Ld. CIT(A) / NFAC from the side of the assessee for which he dismissed the appeal for want of prosecution. However, he has not decided the appeal on merit. It is the submission of the Ld. Counsel for the assessee that in one of the cases of co-owners of the land in question, the returned income has been accepted after the case was reopened. It is also his submission that given an opportunity, the assessee is in a position to substantiate his case by filing the requisite details before the Ld. CIT(A) / NFAC. 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 final opportunity to the assessee to substantiate his case by filing the requisite details and decide the issue 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 at the conclusion of hearing itself i.e. on 31st July, 2025.