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Facts
The assessee is an individual engaged in the business of a petrol pump. The appeal arises from a reassessment order for AY 2017-18, where an addition of Rs. 12,53,560/- was made for unexplained money. The assessee failed to appear before the Assessing Officer and the CIT(A)/NFAC, leading to ex-parte orders.
Held
The Tribunal condoned the delay in filing the appeal, noting it was due to the tax consultant. The CIT(A)/NFAC's order was set aside as it did not deal with the merits of the case. The issue was remitted back to the file of the JAO for fresh adjudication.
Key Issues
Whether the assessee should be prejudiced by the delay caused by the tax consultant, and whether the CIT(A)/NFAC properly adjudicated the appeal on merits.
Sections Cited
147, 144, 144B, 69, 115BBE
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, PUNE BENCH “SMC”, PUNE
Before: SHRI MANISH BORAD
Assessment Year : 2017-18 Shivraj Shankar Gundewadi, Vs. ITO, NFAC, Delhi. At Post Salgare, Tal.- Miraj, Pin Code- 416418. PAN : AJDPG2612C Appellant Respondent Assessee by : None Revenue by : Shri S. Sadananda Singh Date of hearing : 18.06.2025 Date of pronouncement : 23.06.2025 आदेश / ORDER
PER MANISH BORAD, AM:
This appeal filed at the instance of assessee is directed against the order of Ld. CIT(A)/NFAC dated 21.11.2023 which is arising out of the assessment order u/s 147 r.w.s. 144 r.w.s.144B of the Act for Assessment Year 2017-18 framed on 30.03.2022 by the ITO, NFAC, Delhi.
When the case was called for none appeared on behalf of the assessee. In the past also on the dates of hearing fixed on 02.04.2025 and 20.05.2025 even after validly serving of notice of hearing, none appeared physically/virtually. I therefore proceed to deal with the appeal.
3. Registry informed that the appeal is delayed by 400 days. Application for condonation of delay has been filed. On perusal of the same, I notice that the main reason for delay is that the consultant who was looking after the appellate work before Ld. CIT(A)/NFAC and whose e-mail ID was given in Form 35 has received the order on 22.11.2023 but he did not inform the assessee and forwarded the order to the present tax consultant of the assessee on 21.02.2025. It is an admitted fact that the assessee’s are dependent upon the tax consultant and for the delay on their part, the assessee should not suffer. Therefore, in the larger interest of justice and also following the recent judgement of Hon’ble Supreme Court in the case of Inder Singh vs. The State of Madhya Pradesh (2025) INSC 382 dated 21.03.2025 I hereby condone the delay and admit the appeal for adjudication on merits.
With the assistance of Ld. Departmental Representative I have perused the record and find that the assessee, who is an individual, was subject to reassessment proceedings for A.Y. 2017-18 but even after validly serving statutory notices, assessee failed to appear resulting into best judgement assessment framed by Ld. Assessing Officer and addition of Rs.12,53,560/- made for unexplained money u/s 69 r.w.s. 115BBE of the Act.
5. Aggrieved the assessee has preferred appeal before Ld. CIT(A)/NFAC with the delay but the same was condoned by Ld. CIT(A)/NFAC. But subsequently no compliance made to the notices of hearing issued by Ld. CIT(A)/NFAC and no written submissions filed, thus he framed the order ex-parte. I observe that the Ld. CIT(A)/NFAC has not dealt with merits of the case and summarily dismissed the appeal for lack of evidence to be tendered by the assessee. In the statement of facts filed before Ld. CIT(A)/NFAC, the assessee has claimed that he is a proprietor of Matoshri Krushi Seva Kendra and is engaged in the business of petrol pump activity at Salgare. He also stated that books of accounts are duly audited and audit report has been uploaded and source of alleged cash is the cash sales of the petrol pump deposited in the bank regularly. Considering these facts, I deem it appropriate to remit back the issue to the file of Ld. JAO, before whom the assessee shall furnish all relevant details including the proof of running petrol pump, details of cash sales, copy of bank statements and all other relevant documents required to explain the alleged cash deposits. Needless to mention that fair and proper opportunity shall be granted to the assessee for making necessary compliance. The assessee is also directed to furnish latest e-mail ID and contact