SHRI OMKAR NAGARI SAH PAT SANSTHA,SANGLI vs. NATIONAL FACELESS ASSESSMENT CENTER, DELHI, DELHI

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ITA 1617/PUN/2024Status: DisposedITAT Pune07 August 2025AY 2015-16Bench: Dr. MANISH BORAD (Accountant Member), SHRI VINAY BHAMORE (Judicial Member)1 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal, considering the assessee's prayer for another opportunity and in the interest of justice, set aside the order of the CIT(A) and remitted the issues back to the CIT(A) for fresh adjudication, directing that a proper opportunity of hearing be granted.

What were the facts?

The assessee, an Association of Persons, failed to file its return of income for AY 2015-16 and did not comply with notices u/s 148 and 142(1). The Assessing Officer (AO) made a best judgement assessment. The assessee appealed to the CIT(A) but failed to appear for multiple hearings, leading to the dismissal of the appeal.

What were the issues?

Whether the CIT(A) erred in dismissing the appeal ex-parte without providing sufficient opportunity, and whether the reassessment proceedings were validly initiated and conducted.

Which sections of the Income-tax Act were involved?

Section 147,Section 144,Section 153C,Section 144B,Section 69A,Section 148,Section 142(1),Section 250(6)

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Income Tax Appellate Tribunal, A BENCH,

Before: Dr. MANISH BORAD & SHRI VINAY BHAMORE

For Appellant: CA Kishor Phadke
For Respondent: Shri Amol Khairnar CIT-DR

आदेश / ORDER PER DR. MANISH BORAD, ACCOUNTANT MEMBER:- This appeal at the instance of assessee is directed against the order dated 13.06.2024 passed by Ld. CIT(A) NFAC, Delhi u/s 250 of the Income-tax Act, 1961 which is arising out of assessment order passed u/s 147 r.w.s 144 dated 25.04.2022 of the Income Tax Act, 1961.

2.

Assessee has raised following grounds of appeal:-

1.

1. 1. Learned CIT (A) has erred in fact and in law and in the circumstances of the case in confirming addition made by A.O. by passing ex parte order, without providing sufficient opportunity and the rights and liabilities of the appellant are not adjudicated and hence, the order may please be set aside to lower authorities/ to A.Ο.

2. The assessee prays that all the grounds of appeal are without prejudice to each other

3. On the facts and circumstances of the case and in Law, the Ld. CIT [A] has erred in confirming action of AO in proceeding with reassessment u/s 147 of the Income Tax Act instead of proceeding under Section 153C of the Income Tax Act, 1961. Hence the order passed is bad in law being beyond any jurisdiction and need to quashed. The Appellant prays that it be held accordingly.

4. On the facts and circumstances of the case and in law, the Ld. CIT [A] has erred in confirming action of AO that is the order passed by Ld.AO u/s 147 r.w.s. 144B is bad in law as much as it appears that no independent inquiry was made by Ld. AO and the belief was formed merely on the vague information received. Accordingly, the re-assessment proceedings based on borrowed satisfaction needs to be quashed. The Appellant prays that it be held accordingly.

5. On the facts and under the circumstances, the Ld. CIT [A] has erred in confirming action of AO in not appreciating the material on record and submitted during the assessment proceedings and considering entire amount of Rs. 1,61,50,711/- as addition under section 69A. He failed to appreciate the fact that, the assessee had duly shown the bank account and the relevant transactions in the audited books of accounts. Consequentially, he failed to appreciate the fact that, income element embedded in the abovementioned transactions is already accounted for in the audited books of accounts. The appellant prays that the addition be deleted accordingly.

6. On the facts and under the circumstances, the the Ld. CIT [A] has erred in confirming action of AO in not appreciating the material on record and submitted during the assessment proceedings and considering entire amount of Rs. 10,44,55,000 as addition under section 69A. He failed to appreciate the fact that, the assessee had duly shown the relevant bank accounts and the relevant transactions in the audited books of accounts.

7.

Appellant craves to leave, add / alter or amend any other grounds of appeal.

3. At the outset Ld. Counsel for the assessee fairly admitted that in the impugned proceedings assessee failed to appear resulting into the dismissal by Ld. CIT(A). In the interest of justice he requested for providing one more opportunity to pray before Ld. CIT(A).

4. On the other hand Ld. Departmental Representative (DR) supported the orders of Ld. CIT(A).

5.

We have heard rival contentions and perused the record placed before us. The assessee is an Association of Persons and has not filed the regular return of income for A.Y. 2015- 16. The notice u/s 148 of the Act dated 31.03.2021 has been issued after getting proper approval of the competent authority and duly served upon the assessee. Assessee failed to comply even after being served with valid notice u/s 148 and 142(1) of the Act. Ld.Assessing Officer (AO) framed best judgement assessment assessing income at Rs. 12,06,05,711/- after making additions u/s 69A at Rs. 1,61,50,711/- and Rs. 10,44,55,000/- Though the assessee has filed the appeal before Ld. CIT(A) on 25.04.2022 but thereafter on the date of hearing fixed for 16.11.2022, 03.01.2023, 20/12/2023 and 10.03.2024 assessee either failed to appear or did not file the requisite details. As a result Ld. CIT(A) referring to the judgement of Hon’ble Supreme Court in the case of B.N. Bhattacharjee & other 118 ITR 461 (SC) dismissed the assessee’s appeal.

6.

However considering the prayer made by the Ld. Counsel for the assessee and in the larger interest of justice and being fair to both the parties we deem it appropriate to provide one more opportunity to the assessee and set aside the impugned order and remit all the issues raised in the instant appeal to the file of Ld. CIT(A) for necessary adjudication in accordance with law as contemplated u/s 250(6) of the Act. Needless to mention that proper opportunity of hearing shall be granted to the assessee. Assessee is also directed to remain vigilant and not to take adjournment unless otherwise required for reasonable cause. Effective grounds of appeal

raised by the assessee are allowed for statistical purposes.

7. In the result, appeal of the assessee is allowed for statistical purposes. Order pronounced on this 14th day of August, 2025.

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