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Facts
The assessee's appeals were directed against separate orders of the CIT(A) for Assessment Years 2005-06 and 2010-11, arising from assessment orders passed under Section 143(3) r.w.s. 148. The assessee failed to appear before the CIT(A) on multiple occasions, leading to ex-parte orders.
Held
The Tribunal restored the impugned issues back to the file of the CIT(A) to provide the assessee with a fair opportunity to explain and prove the genuineness of the loan received from Mr. Umesh Shinde. The assessee was directed to be vigilant and avoid unnecessary adjournments.
Key Issues
Whether the CIT(A) erred in passing ex-parte orders without considering the merits, and whether the additions for unexplained investments were justified without considering the declared source of funds.
Sections Cited
147, 148, 143(3), 250, 254, 132
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, SMC BENCH, PUNE
Before: Dr. MANISH BORAD
Assessee by : None Revenue by : Shri Dayanand Jawalikar Date of hearing : 11.06.2025 Date of : 19.06.2025 pronouncement आदेश/ORDER
PER DR. MANISH BORAD, ACCOUNTANT MEMBER :
The present appeal at the instance of assessee are directed against the separate orders of Ld. ADDL/JCIT(A)-3 Bengaluru [(Ld. CIT(A)] framed u/s 250 r.w.s. 254 of the Income Tax Act evenly dated 24.02.2025 and are arising out of the separate Assessment Orders for A.Y. 2005-06 and 2010-11 passed u/s 143(3) r.w.s 148 of the Act evenly dated 07.03.2013.
Since assessee has raised common grounds of appeal for A.Y. 2005-06 and A.Y. 2010-11, I am reproducing below the grounds of appeal raised for A.Y. 2005-06:-
1. On the facts and the circumstances of the case and in law, learned CIT appeal erred in passing Ex-parte order u/s 250 of The Income Tax Act, 1961 without discussing the merit of the case, appellant prays for restoring the matters to the file of learned CIT Appeal for considering the appeal on merit. The notice for hearing was send to email address which was not used by the assessee and hence the assessee was unable to comply with the notices.
2. On facts and in circumstances of the case the Learned CIT(A) has erred in confirming additions of Rs. 7,50,000/- in the hands of assessee as unexplained investment.
3. On facts and in circumstances of the case the learned CIT(A) has erred in law and on merit in not considering the fact that original source of investment has been offered in declaration made of Shri. Umesh shinde in search action u/s 132 conducted on him.
The appellant craves leave to add, alter, amend or delete any of the above grounds of appeal.
3. When the case was called for none appeared on behalf of the assessee. With the assistance of Ld. DR and on perusal of records I note that ground No. 1 has been raised stating that since the order of Ld. CIT(A) is ex-parte, the matter may please be restored to the file of Ld. CIT(A) for considering the appeal on merit.
4. I have heard Ld. DR and perused the record placed before us. The assessee preferred the appeal before the Ld. CIT(A) against the addition of Rs. 7,50,000/- and Rs. 9,11,500/- for A.Y. 2005-06 and A.Y. 2010-11 made by the Assessing Officer (AO) for unexplained investment. In the first round of proceedings the assessee failed to appear and assessee’s appeal was dismissed by Ld. CIT(A) and then this Tribunal vide order dated 14.06.2019 remanding the issue back to the file of Ld. CIT(A). But surprisingly assessee again failed to make any compliance to the notice of hearing given by the Ld.
CIT(A) on six occasions. As a result Ld. CIT(A) dismissed the assessee’s appeal. Again the assessee preferred the appeal before this Tribunal and has raised the ground No. 1 for restoring the matter to the file of Ld. CIT(A). The assessee has not furnished any Paper Book before this Tribunal nor any specific details have been mentioned in the facts.
Considering the facts and circumstances and also observing that similar nature of additions have been made in other assessment years and still pending for adjudication therefore in the larger interest of justice I remit the impugned issues back to the file of Ld. CIT(A) who shall give fair opportunity to the assessee to explain and prove the genuineness of the loan received from Mr. Umesh Shinde and then Ld. CIT(A) can decide in accordance with law. Assessee is directed to remain vigilant and not to take unnecessary adjournment unless otherwise required for reasonable cause. Effective grounds of appeal raised by the assessee on merits for both the impugned years are allowed for statistical purposes.
In the result, appeals of the assessee for A.Y. 2005-06 and A.Y. 2010-11 are allowed for statistical purposes.
Order pronounced on this 19th day of June, 2025.