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Facts
The assessee, a Cooperative Society, failed to file its return of income for AY 2016-17 despite notices. The Assessing Officer made an addition of Rs.1,24,97,234/- based on cash deposits of Rs.85,72,800/-. The assessee also failed to appear before the CIT(A).
Held
The Tribunal noted that the assessee failed to provide opportunities to the AO and CIT(A), leading to an ex-parte assessment. However, considering the larger interest of justice, the Tribunal restored the issues to the AO for a denovo assessment after the assessee furnishes necessary details.
Key Issues
Whether the assessee should be granted another opportunity to present its case before the AO for a denovo assessment, considering past failures to comply with notices.
Sections Cited
250, 147, 144, 148, 144B
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, PUNE BENCHES “A”, PUNE
Before: DR.MANISH BORAD & SHRI VINAY BHAMORE
आदेश / ORDER
PER DR. MANISH BORAD, ACCOUNTANT MEMBER :
The captioned appeal at the instance of assessee pertaining to A.Y. 2016-17 is directed against the order dated 11.06.2024 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 14.02.2024 passed u/s.147 r.w.s 144 r.w.s 144B of the Act.
At the outset, ld. Counsel for the assessee submitted that assessee failed to avail the opportunities granted by the Assessing Officer as well as CIT(A) resulting into ex-parte best judgment assessment u/s.144 of the Act. He further submitted that ld. CIT(A) has not dealt the issues on merits of the case and thus prayed that the matter may please be restored to the file of ld. Jurisdictional Officer so that all necessary details can be filed to
We have heard the rival contentions and perused the record placed before us. We find that the assessee is a Cooperative Society and for A.Y 2016-17 cash of Rs.85,72,800/- was found to be deposited in the bank account of the assessee. Assessee did not file the return of income even after issuance of notices u/s. 148 of the Act. Ld. Assessing Officer based on the information available on record completed the assessment making addition of Rs.1,24,97,234/-. Aggrieved assessee preferred appeal before CIT(A) but again failed to respond to the notices of hearing and furnish the requisite details in respect of its grounds of appeal. Before us, Ld. Counsel for the assessee has furnished paper book running into 192 pages which includes copy of Registration of Society, Audit Report for the Financial Year 2015-16 along with Members list and Income-tax returns filed from A.Y 2018-19 onwards. From going through all these details and the contention of ld. Counsel for the assessee and in the larger interest of justice being fair to both the parties, we deem it proper to provide one more opportunity to the assessee to substantiate its case. We therefore restore all the issues raised before us to the file of ld. Jurisdictional Assessing Officer before assessee shall file all the details. After carefully examining the details, ld. JAO shall frame denovo assessment in accordance with law after affording reasonable opportunity of hearing to the assessee. Assessee is directed to provide updated email id and contact detail to the department for receiving the notices from ITBA portal. Assessee is also directed to remain vigilant and not to take adjournment unless otherwise required for reasonable cause.
In the result, appeal of the assessee is allowed for statistical purposes.
Order pronounced on this 14th day of July, 2025.