RATILAL DAGADULAL MUTHA,PUNE vs. INCOME TAX OFFICER, WARD-14(5), PUNE, PUNE

The captioned appeal at the instance of assessee pertaiing to A.Y. 2014-15 is directed against the order dated 08.11.2024 framed by National Faceless Appeal Centre, Delhi which inturn is arising out of Assessment order dated 22.05.2023 passed u/s.147 r.w.s.144 r.w.s.144B of the Income Tax Act, 1961 ( in short ‘the Act’).

Brief facts of the case are that the assessee is an individual and has not filed the return of income for the year under consideration u/s.139(1) of the Act. Based on the information available that the assessee had deposited cash of Rs.3.40 crore in the bank account maintained with Shri Laxmi Coop. Bank Ltd. the case was reopened by way of issuance of notice u/s.148 of the Act. Statutory notices u/s.142(1) of the Act were issued to the assessee to which there was no compliance. Ld. AO concluded the proceedings by bringing to tax the cash credits of Rs.1,70,25,600/- as unexplained money u/s.69A of the Act.

Aggrieved assessee preferred and appeal before the ld.CIT(A) and the ld.CIT(A) dismissed the appeal in limine for non-prosecution, without discussing anything on merits of the issue. Now the assessee is in appeal before this Tribunal.

We have heard both the sides and perused the record placed before us. During the course of hearing before us, ld. Counsel for the assessee submitted that assessee’s case could not be represented effectively before the authorities for the reasons beyond the control of assessee and prayed to grant one more opportunity to the assessee by remitting the issue on merits to the file of ld.CIT(A). Ld. Departmental Representative was fair enough in not opposing the request of the assessee. Hon’ble Bombay High Court in the case of PCIT (C) 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 an exparte order. In view thereof and without dwelling into merits of the issues and considering the submissions of the assessee, we deem it proper to restore the issue on merits to the file of ld.CIT(A) for necessary adjudication. Assessee is at liberty to adduce evidences in support of the sources of cash deposit. Ld.CIT(A) may call for a remand report from Ld. Jurisdictional Assessing Officer and after obtaining the comments of the assessee to such remand report, pass a speaking order as contemplated u/s.250(6) of the Act. Needless to say, the assessee will be given reasonable opportunity of hearing. Assessee is directed to provide correct email id and contact detail to the department for receiving the notices from ITBA portal. Assessee is further directed to remain vigilant and not to take adjournment unless otherwise required for reasonable cause, failing which the ld.CIT(A) shall be free to proceed in accordance with law. Findings of ld.CIT(A) is set aside and effective grounds of appeal raised by the assessee are allowed for statistical purposes.