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Income Tax Appellate Tribunal, INDORE BENCH, INDORE
Before: SHRI B.M. BIYANI & SHRI PARESH M. JOSHI
आदेश/ O R D E R
Per B.M. Biyani, A.M.:
Feeling aggrieved by order of first-appeal dated 29.11.2024 passed by learned Commissioner of Income-Tax (Appeals)-NFAC, Delhi [“CIT(A)”] which in turn arises out of assessment-order dated 01.03.2023 passed by learned Assessment Unit of Income-tax Department [“AO”] u/s 147 r.w.s. 144 & 144B of Income-tax Act, 1961 [“the Act”] for Assessment-Year [“AY”] 2018-19,
Page 1 of 4 the assessee has filed this appeal on the grounds mentioned in Appeal Memo (Form No. 36).
Ld. AR for assessee submits that the assessee is a consumer co- operative society engaged in distribution of LPG connections of Bharat Petroleum (a Govt. of India undertaking) to the labourers in Narmada Nagar where a Hydel Project of 1000 MW is erected on river Narmada in Khadwa District. For the relevant AY 2018-19, the assessee’s case was taken for assessment u/s 147 on the basis of information available with the AO as to the cash deposits of Rs. 1,59,28,227/- in bank a/c of assessee and interest of Rs. 1,37,118/- earned by assessee; both aggregating to Rs. 1,60,65,345/-.
For assessment of assessee, the AO issued various notices u/s 148/142(1)/144 but the assessee-society was having a part time accountant who did not have any access to the email of assessee-society and the notices sent by AO could not be attended. The assessee could only file the return of income lastly on 20.02.2023 after receiving a verbal communication from Income-tax Department [the details of return so filed are available in Column 8.1 of the Form No. 35 filed to CIT(A)]. The AO, however, passed ex- parte assessment-order on 01.03.2023 u/s 144 with the remark as return “Not filed” and assessing total income at Rs. 1,60,65,345/- [Para 4 of assessment-order]. The assessee was not even aware of the assessment- order having been passed by AO for the very same reason of part time accountant and hence there occurred a delay of 121 days in filing first- appeal to CIT(A). The CIT(A), however, was kind enough in condoning the Page 2 of 4 delay considering the assessee’s case judiciously. Thereafter, the CIT(A) issued five notices to assessee [Para 7.1 of impugned order] but the assessee could comply only first notice dated 16.04.2024 [Para 5.0 of impugned order] and could not comply rest of the four notices because the assessee supplied email id: narmadagasagency@gmail.com in Form No. 35 but the CIT(A) sent notices to email id: salary16knw1617@gmail.com / dajhawar@hotmail.com. To demonstrate this, Ld. AR has filed copies of notices dated 09.09.2024 & 24.09.2024 issued by CIT(A). Therefore, the CIT(A) has dismissed assessee’s first-appeal for non-prosecution and upheld AO’s order in absence of representation by assessee. However, the assessee is having all documents in possession, primarily in the form of Audit report, Audited accounts, Ledger statement of Bharat Petroleum, Bank statement, etc. to explain the deposits in its bank a/c. The assessee is ready to produce these documents to the AO and explain the sources of deposits if an opportunity is given and prays that the present matter should be remanded to AO for adjudication afresh after examining of assessee’s evidences.
Ld. DR for revenue agrees with the prayer of Ld. AR but makes a request to direct the assessee to represent his case before AO and do not seek unnecessary adjournments.
Considering above submissions of parties; having regard to the principle of natural justice and also bearing in mind that no prejudice would be caused to revenue if the present matter is restored at the level of AO, we remand this matter back to the file of AO for adjudication afresh, at the risk
Page 3 of 4 and responsibility of assessee. The AO shall give necessary opportunity of hearing to assessee and pass an appropriate order uninfluenced by his earlier order. The assessee is also directed to remain vigilant and ensure participation in the hearings as may be fixed by AO and do not seek unnecessary adjournments failing which the AO shall be at liberty to pass appropriate order in accordance with law. Ordered accordingly.
Resultantly, this appeal is allowed for statistical purpose.
Order pronounced in open court on 19/08/2025