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Facts
The assessee, who did not file a return of income for AY 2017-18, failed to appear for hearings before the Ld. CIT(A) and did not submit documentary evidence. The original assessment order was passed ex-parte by the AO after observing cash deposits during the demonetization period.
Held
The Tribunal, in the interest of justice, restored the issue to the file of the Ld. CIT(A) and granted the assessee one more opportunity to present their case. The Ld. CIT(A) is directed to grant a reasonable opportunity and pass a speaking order.
Key Issues
Whether the additions made by the AO were justified without considering the assessee's submissions and evidence, and whether the assessee should be granted another opportunity to present their case before the CIT(A).
Sections Cited
144, 69, 44AD
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, SMC BENCH, PUNE
Before: Dr. MANISH BORAD & MS. ASTHA CHANDRA
Assessee by : None Revenue by : Shri Akhilesh Srivastava, Additional CIT Date of hearing : 23.04.2025 Date of : 25.04.2025 pronouncement आदेश/ORDER PER DR. MANISH BORAD, ACCOUNTANT MEMBER :
This appeal at the instance of assessee pertaining to Assessment Year 2017-18 is directed against the order dated 17.12.2019 passed by ITO, Pune u/s 144 of the Income-tax Act, 1961.
Assessee has raised following grounds of appeal:-
1. The Ld. CIT (A) (NFAC) and Ld. Assessing Officer [ITO Ward 8(4)] has erred in law and in facts in treating amount of Rs. 14,96,500/- as unexplained investment u/s 69 of the 1.T Act without taking into consideration the fact that appellant has already given clarification regarding the cash deposits made for the period under consideration with detailed evidence.
2. The Ld. CIT (A) (NFAC) and Ld. Assessing Officer [ITO Ward 8(4)] has erred in law and in facts in treating the amount of Rs. 627,300/- as Income from business or Profession. The Assessee had opted for presumptive mode of taxation u/s 44AD of the Act and declared business income @ 9% but the Ld. AO without considering the Income Tax Return had considered business income @15%.
The Ld. CIT (A) (NFAC) and Ld. Assessing Officer [ITO Ward 8(4)) has erred in law and in facts by making addition of all credits in the Bank Statement without considering the factual position of the same.
The Ld. CIT (A) (NFAC) and Ld. Assessing Officer [ITO Ward 8(4)] has erred in law and in facts in Completing the Assessment Proceedings without considering the Income Tax Return filed by the Assessee against the Notices issued.
5. The appellant craves leave to add / alter / amend / modify / delete all / any grounds of appeal.
3. When the case was called for none appeared on behalf of the assessee even though valid notice of hearing was issued to the assessee. With the assistance of Ld. DR., we on perusal of record find that the impugned order is ex-parte as the assessee failed to appear on the dates of hearing and could not submit any documentary evidence.
4. We have heard Ld. DR and perused the record placed before us. The assessee who is an individual did not file return of income for A.Y. 2017-18 but on account of cash deposit during demonetization period assessment proceedings were carried out after valid issuance of statutory notice. The assessee failed to make proper submissions. Ld. AO concluded the assessment making addition of Rs. 21,23,800/- The assessee challenged the additions before Ld. CIT(A). After filing of the appeal, assessee failed to appear on dates of hearing given by Ld. CIT(A) on various occasions . Ld. CIT(A) passed the order on merits based on file records. We however notice that finding of Ld. CIT(A) is only based on the assessment order but clearly there was no documentary evidence filed by the assessee.
We therefore in the larger interest of justice, deem it appropriate to restore the issue to the file of Ld. CIT(A) and afford one more opportunity to the assessee. Assessee is also directed to remain vigilant and not to take unnecessary adjournment unless otherwise required for reasonable cause. Ld. CIT(A) shall grant reasonable opportunity to assessee and pass a speaking order in accordance to law. Effective grounds of appeal raised by the assessee are allowed for statistical purposes.
In the result, appeal of the assessee is allowed for statistical purposes.
Order pronounced on this 25th day of April, 2025.