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Facts
The assessee's income tax return for AY 2021-22 was selected for scrutiny due to large cash deposits. The AO made additions and assessed income at Rs. 1,00,58,059/-. The assessee filed an appeal with the CIT(A), but failed to attend hearings, leading the CIT(A) to dismiss the appeal in limine for want of prosecution without adjudicating on merits.
Held
Citing a Bombay High Court judgment, the ITAT ruled that the CIT(A) is obligated to dispose of appeals on merits, even in ex-parte orders. The ITAT remitted the case back to the CIT(A) for fresh adjudication on merits, directing the assessee to update their contact details.
Key Issues
Whether the CIT(A) can dismiss an appeal in limine for non-prosecution without adjudicating on its merits, particularly when notices were issued but not responded to.
Sections Cited
143(2), 142(1), 144
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Income Tax Appellate Tribunal, PUNE “B” BENCH : PUNE
Before: DR. MANISH BORAD & SHRI VINAY BHAMORE
IN THE INCOME TAX APPELLATE TRIBUNAL PUNE “B” BENCH : PUNE BEFORE DR. MANISH BORAD, ACCOUNTANT MEMBER AND SHRI VINAY BHAMORE, JUDICIAL MEMBER I.T.A.No.855/PUN/2025 (Assessment Year 2021-22) Popatial Tejraj Gandhi, ITO, Ward-11(1), Pune Zaveri Arcade Marwad Peth, Baramati, Pune-413 102 vs. PAN : ABMPG 3609 E (Appellant) (Respondent) For Assessee : None For Revenue : Shri Manish Mehta, Addl. CIT Date of Hearing : 15.05.2025 Date of Pronouncement : 21.05.2025 ORDER PER DR. MANISH BORAD, AM:
This appeal by the assessee is directed against the order dated 29.01.2025 of the Ld. Commissioner of Income Tax (Appeals)/NFAC, Delhi [“CIT(A)”] for the A.Y. 2021-22
When the case is called for, none appeared on behalf of the assessee, even when valid notice of hearing has been issued. With the assistance of Ld.DR, we, on perusal of the record, noticed that the impugned order is an exparte and Ld. CIT(A) has dismissed the appeal in limine by applying judicial precedents, but has failed to adjudicate the issues on merits.
Ld.DR raised no objection if the issues raised in the instant appeal are restored back to the file of the Ld. CIT(A) for necessary adjudication on merits.
2 ITA.No.855/PUN./2025 (Popatial Tejraj Gandhi) 4. We have heard Ld.DR and perused the record placed before us. We observe that the assessee is an individual and had declared income of Rs. 15,96,270/- in the e-return for A.Y. 2021-22 filed on 26/03/2022. The said return selected for scrutiny through CASS to examine the issue of “large cash deposits in the bank account”. Notice/s were issued u/sec. 143(2) and 142(1) & 144 of the Act and remain to be complied. Based on the information contained in the tax return and the information available with the Ld.AO, the additions amounting to Rs. 84,61,789/- were made by the Ld.AO and income was assessed at Rs. 1,00,58,059/-.
The assessee preferred an appeal before the Ld. CIT(A), but failed to attend the notices of hearing issued by the Ld. CIT(A). We further observe from para 5 of the impugned order that the Ld.CIT(A) has mentioned the e-mail ID on which various notices were sent and in the remark column mentions “no response received”. Thereafter, Ld. CIT(A) without dealing with the matter on merits, dismissed the appeal for want of prosecution placing reliance on certain judicial precedents. We observe that the Hon'ble Bombay High Court in the case of Pr.CIT (Central) Vs. Premkumar Arjundas Luthra (HUF) [2017] 297 CTR 614 (Bombay) has held that Ld. CIT(A)/NFAC is obliged to dispose of the appeal on merits even in ex-parte order. Taking guidance of the said judgment, and also considering the facts and circumstances of the case, we deem it appropriate to remit the issues back to the file of the Ld. CIT(A) for necessary adjudication on merits, for which a reasonable opportunity shall be provided to the assessee. We also direct the assessee to update the latest e-mail ID and contact
3 ITA.No.855/PUN./2025 (Popatial Tejraj Gandhi) details on the income tax e-portal and also provide the same to the Ld. CIT(A), so that notice of hearing can be received by the assessee and proper compliance can be made. Assessee is also directed to remain vigilant and not to take adjournments unless otherwise required for reasonable cause and furnish all the details in support of grounds of appeal based on which the Ld. CIT(A) shall decide the appeal in accordance with law by way of passing speaking order.
6. In the result, appeal of the assessee is allowed for statistical purposes. Order pronounced in the open Court on 21.05.2025.