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Facts
The assessee, an individual, did not file an original return of income. The Department received information about a cash deposit of Rs. 70,00,500/- made by the assessee. A notice under Section 148 was issued, and a return declaring Nil income was filed. The assessment was initially completed under Section 143(3) r.w.s. 147. Later, the Pr. CIT, invoking Section 263, set aside the order due to improper enquiry, leading to an ex-parte assessment under Section 144 r.w.s. 263.
Held
The Tribunal held that the CIT(A)/NFAC erred in dismissing the appeal without condoning the delay of 24 days and without deciding the case on merits. Considering the prevailing circumstances and the interest of justice, the Tribunal set aside the order of CIT(A)/NFAC.
Key Issues
Whether the CIT(A)/NFAC was justified in dismissing the appeal without condoning a 24-day delay and without adjudicating the appeal on merits. Whether the assessment order passed without proper enquiry and ex-parte needs to be revisited.
Sections Cited
147, 148, 143(3), 69, 263, 144, 68
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, PUNE BENCH “A”, PUNE
Before: SHRI R. K. PANDA & SHRI VINAY BHAMORE
Assessment Year : 2014-15 Chhababai Maruti Gadute, Vs. National e-Assessment Gadute Wasti Bakori Kesnand, Centre, Delhi. Haveli, Pune- 412207. PAN : BOZPG9012E Appellant Respondent Assessee by : Shri Suhas P. Bora Revenue by : Shri Ramnath P. Murkunde Date of hearing : 10.02.2025 Date of pronouncement : 27.02.2025 आदेश / ORDER
PER VINAY BHAMORE, JM:
This appeal filed by the assessee is directed against the order dated 07.08.2024 passed by Ld. CIT(A)/NFAC for the assessment year 2014-15.
Facts of the case, in brief, are that the assessee is an individual and had not filed original return of income for the period under consideration. The Department had information that the assessee had deposited cash of Rs.70,00,500/- on 25.03.2014 in Maharashtra Gramin Bank, Wagholi Branch, Pune. Accordingly, notice u/s 148 was issued and in response to that the assessee furnished her return of income declaring Nil income which was accepted by the Assessing Officer and the assessment was completed u/s 143(3) r.w.s. 147 of the IT Act. Subsequently, Ld. Pr.CIT observed that the Assessing Officer failed to make proper enquiry and resultantly the addition of Rs.70,00,500/- on account of above-said cash deposits as unexplained money u/s 69 of the IT Act was not made. Accordingly, Ld. Pr.CIT by invoking the provisions of section 263 of the IT Act set-aside the assessment order to re-frame the assessment as per fact and law after considering the submissions of the assessee. The Assessing Officer completed the assessment u/s 144 r.w.s. 263 of the IT Act wherein addition of Rs.70,00,500/- was made u/s 68 of the IT Act as unexplained money. The assessment u/s 144 r.w.s. 263 of the IT Act was completed ex-parte since the assessee did not participated in the assessment proceedings.
3. Since the first appeal was filed belatedly i.e. with the delay of 24 days, Ld. CIT(A)/NFAC dismissed the same without condoning the delay of 24 days. It is this order against which the assessee is in appeal before this Tribunal.
Ld. AR appearing from the side of the assessee submitted before us that Ld. CIT(A) committed grave error in not condoning the delay of only 24 days in filing appeal before him. It was further submitted by Ld. AR that the appeal was not decided on merits by Ld. CIT(A)/NFAC. Accordingly, it was prayed before the Bench to set-aside the order passed by Ld. CIT(A)/NFAC & further requested to direct him to condone the delay of 24 days & decide the appeal on merits of the case after hearing the assessee, so that the assessee can furnish documents/evidences/explanation in support of grounds of appeal
5. Ld. DR appearing from the side of the Revenue relied on the order passed by Ld. CIT(A)/NFAC and requested to confirm the same.
6. We have heard Ld. Counsels from both the sides and perused the material available on record. We find that Ld. CIT(A)/NFAC 24 days as well as without deciding the merits of the case. In this regard, an affidavit explaining the reasons of delay of 24 days in filing of appeal before Ld. CIT(A)/NFAC has been furnished before us. In this regard, we find that Hon’ble Apex Court has already extended the limitation upto 30-05-2022 due to covid pandemic, and therefore, Ld. CIT(A)/NFAC should have had condoned the delay & decide the appeal on merits of the case. Considering the totality of the facts of the case & in the interest of justice & without going into merits of the case we deem it appropriate to set-aside the order passed by Ld. CIT(A)/NFAC with a direction to condone the delay of 24 days and decide the appeal afresh as per fact and law after providing reasonable opportunity of hearing to the assessee. The assessee is also hereby directed to respond to the notices issued by Ld. CIT(A)/NFAC in this regard and produce supporting documents/evidences/ explanations in support of grounds of appeal without taking any adjournment under any pretext, otherwise, Ld. CIT(A)/NFAC shall