RUPSINGH THANSINGH PATIL,AURANGABAD vs. ITO, WARD-2(5), AURANGABAD

This appeal by the assessee pertaining to Assessment Year 2011-12 is directed against the order dated 24.09.2024 passed by National Faceless Appeal Centre, Delhi u/s.250 of the Income-tax Act, 1961 (hereinafter also called ‘the Act’) which inturn is arising out of the Assessment Order passed u/s.144 r.w.s. 147 dated 16.12.2018.

Facts in brief are that the assessee is an individual who did not file any return of income for the year under consideration under the provisions of section 139(1) of the Act. Based on the information available with the department that the assessee made cash deposit of Rs.20,83,000/- in his savings bank maintained with Deogiri Nagari Sahakari Bank Ltd. for the period from 01.04.2010 to 31.03.2011, the case was reopened by issuance of notice u/s.148 of the Act. In response to notice u/s.142(1) of the Act issued on 18.09.2018, the assessee submitted the copy of ITR filed on 11.09.2018. Thereafter, notice u/s.142(1) along with questionnaire was issued on 16.11.2018 to which there was no compliance by the assessee. In the event, the Assessing Officer completed the assessment us/.144 r.w.s.147 of the Act making addition of Rs.10,23,000/- as unexplained money invoking the provisions of section 69A of the Act.

Aggrieved assessee preferred appeal before the ld.NFAC who vide impugned order dismissed the appeal for non- prosecution, without discussing anything on merits of the issue.

Now the assessee is in appeal before the Tribunal.

I have heard both the sides and perused the record placed before me. It is conspicuous that the assessee did not appear before the Assessing Officer and the First Appellate Authority. Further, it is also a fact that the ld.CIT(A)/NFAC has dismissed the assessee’s appeal in limine without discussing the issue on merits as contemplated u/s.250(6) of the Act, which provides that for adjudicating the appeal, the ld.CIT(A)/NFAC should dispose of the same in writing and shall state the points for determination, the decision thereon and the reason for that decision. The settled position of law mandates the ld.NFAC to dispose of the appeal by adjudicating the issues raised in appeal on merits. In this regard, reference is being made to a decision of the Hon’ble Bombay High Court in the case of Pr.CIT(Central) Vs. Premkumar Arjundas Luthra (HUF) Bombay)/[2017] 297 CTR 614 (Bombay) wherein it was held that NFAC is obliged to dispose of the appeal on merits.

During the course of present hearing, the assessee has filed a paper book and pleaded that he owns agricultural land and runs a business under the name and style ‘M/s. Jay Rana Pan Center’. He also filed Cash summary for the period 01.04.2010 to 31.03.2011. It is also claimed that assessee’s wife owned some agricultural land and she received sale consideration from selling part of the said land which was given to the assessee. All these facts were brought before the Tribunal for the first time. In the light of these facts, I am of the opinion that assessee deserves one more opportunity to meet the ends of justice. In view thereof, without dwelling into merits of the issue, the issue on merits is being remitted to the file of Jurisdictional Assessing Officer for denovo adjudication. The assessee is also directed to remain vigilant and not to take adjournment unless otherwise required for reasonable cause, failing which the ld. Assessing Officer shall be free to proceed in accordance with law. Finding of the ld.NFAC is set aside and Grounds of appeal raised by the assessee are allowed for statistical purposes.

In the result, the appeal of the assessee is allowed for statistical purposes.