RAMESH CHOTURAM SHARMA,RAIGAD vs. COMMISSIONER OF INCOME TAX, NAVI MUMBAI

The captioned appeal at the instance of assessee pertaining to A.Y. 2017-18 is directed against the order dated 26.12.2024 passed by National Faceless Appeal Centre, Delhi u/s.250 of the Income-tax Act, 1961 (in short ‘the Act’) arising out of the Assessment order dated 03.10.2019 passed u/s.144 of the Act.

At the outset, Ld. Counsel for the assessee submitted that since the assessee is residing in a village, neither e-mails could be accessed for the notices sent by ld.CIT(A)/NFAC through ITBA portal nor any notice was sent through speed post. It was also submitted that assessee could not place any evidence to explain the source of cash deposit of Rs.23,66,720/- for which ld. AO made addition u/s.69A of the Act. Therefore, a prayer is made for remitting back the issues on remit to the file of ld.CIT(A) for necessary adjudication to which ld. Departmental Representative did not oppose.

We have heard the rival submissions and perused the record placed before us. We note that the assessee is an individual and did not file return of income for A.Y. 2017-18 under the provisions of section 139(1) of the Act. Based on the information about the cash deposit of Rs.22,88,000/- during the demonetization period in the old currency in the bank account held by the assessee, case selected for scrutiny, however assessee failed to make any compliance resulting into best judgment assessment u/s.144 of the Act making couple of additions and assessed the income at Rs.23,66,720/-. Before ld.CIT(A), assessee challenged the addition and stated that he is a labour contractor and has meagre income of Rs.48,934/- and no tax liability. However, assessee failed to make any submission about the source of alleged cash deposit in the bank account held in his name. We also observe that few notices of hearing issued by ld.CIT(A) were during covid-19 pandemic period prevailed across the country at that point of time and for the remaining except once assessee could not appear. We therefore considering the facts and circumstance of the case and in the larger interest of justice deem it proper to restore the issues to the file of ld.CIT(A) for necessary adjudication. Assessee is directed to provide latest 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 unnecessary adjournment unless otherwise required for reasonable cause. Impugned order is set aside and the grounds of appeal raised by the assessee are allowed for statistical purposes.