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Facts
The assessee, Bhagyeshree Chandrashekar Sakle, did not file an Income Tax Return for A.Y. 2020-21. Based on information, the Assessing Officer initiated reassessment under section 147, but due to non-compliance by the assessee, an ex-parte assessment was completed under section 144 r.w.s 147, resulting in additions for unexplained money under section 69A r.w.s 115BBE. The CIT(A) dismissed the assessee's appeal due to non-compliance, without adjudicating the merits of the case.
Held
The Tribunal set aside the assessment order for A.Y. 2020-21 and remanded the matter back to the Assessing Officer for de novo adjudication. The AO is directed to provide the assessee with a proper opportunity of hearing to file all necessary details. The Tribunal noted that for A.Y. 2019-20, a similar ex-parte assessment was set aside by the CIT(A), and for A.Y. 2024-25, the AO had accepted the assessee's submissions without additions.
Key Issues
Validity of ex-parte assessment and alleged violation of natural justice due to assessee's non-compliance. Additions for unexplained money/cash deposits under section 69A r.w.s 115BBE related to the assessee's activities as a Bank Mitra and commission agent.
Sections Cited
Section 250, Section 147, Section 144, Section 144B, Section 148, Section 69A, Section 115BBE
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, PUNE BENCHES “A” :: PUNE
Before: DR.DIPAK P. RIPOTE & SHRI VINAY BHAMORE
ORDER
PER DR. DIPAK P. RIPOTE, AM:
This appeal filed by the Assessee is against the order of ld.Commissioner of Income Tax(Appeal)[NFAC], passed under section 250 of the Income Tax Act, 1961 dated 12.09.2025 for A.Y.2020-21 emanating from the assessment order passed under section 147 r.w.s 144 read with section 144B of the Income-tax Act, 1961 dated 17.01.2025. The Assessee has raised the following grounds of appeal :
On the facts and the circumstances of the case and in law, lower authorities erred in passing ex-parte order and erred in deciding the issue only on the basis of material available with them, this action is being violative of principal of natural justice. Your appellant prays for granting opportunity of hearing before lower authorities. Without prejudice to the above grounds of appeal
, following grounds are also taken on merit,
2. On the facts and in the circumstances of the case and in law, Ld. AO erred in making an addition of Rs.2,31,73,455/- u/s 69A r.w.s 11588E- Unexplained Money, given an opportunity, your appellant is in position to explain the details of deposits and anyway these cash deposits were made on behalf of bank for its customers and such amount cannot be treated as income of the appellant
3. On the facts and in the circumstances of the case and in law, Ld. AO erred in making an addition of Rs.1,30,637/- anyway the entire receipt cannot be taxed your appellant prays for appropriate relief as per the provisions of law. Your appellant prays for deletion of entire addition. Your appellant craves for to add, alter amend, modify, delete any or all grounds of appeal before or during the course of hearing in the interest of principle of natural justice.” Findings &Analysis :
2. We have heard both the parties and perused the records. In this case, Assessee has not filed Return of Income for A.Y.2020-21. Assessing Officer had received information on the Insight Portal of Income Tax Department. Accordingly, Assessing Officer issued notice u/s.148 of the Act, dated 24.01.2024. Assessee had not complied to the notice u/s.148 of the Act. Then, Assessing Officer issued various notices. Assessee failed to comply any of the notices, including show-cause notice. Therefore, Assessing Officer passed 2 order u/s.144 r.w.s 147 of the Act, assessing the total income at Rs.2,33,90,380/-. Aggrieved by the assessment order, Assessee filed appeal before the ld.CIT(A) on 17.06.2025. Ld.CIT(A) dismissed the appeal of the assessee on account of non-compliance, without adjudicating the grounds of appeal raised by the Assessee. Aggrieved by the order of ld.CIT(A), Assessee has filed appeal before this Tribunal.
3. Mr.Pramod Shingte-CA, ld.Authroised Representative for the Assessee filed a paper book. Ld.AR submitted that Assessee is working as a Bank Mitra. Ld.AR filed copy of the agreement dated 09.12.2018 to demonstrate that assessee is working as a Bank Mitra. Ld.AR also submitted copy of the order u/s.250 dated 29.10.2025 for A.Y.2019-20, wherein on identical facts ld.CIT(A) has set-aside the order of the Assessing Officer for denovo adjudication. Ld.AR submitted that Assessee may be provided one more opportunity to file all the details. Ld.AR also filed copy of assessment order for A.Y.2024-25 dated 19.11.2025 to demonstrate that Assessing Officer for A.Y.2024-25 has accepted assessee’s submission and passed assessment order without any addition.
Ld.Departmental Representative(ld.DR) for the Revenue vehemently opposed the contention of the ld.AR for the Assessee. 3
We have perused the assessment order for A.Y.2024-25 passed by Assessing Officer on 19.11.2025. The relevant paragraphs 3.4.3, 3.4.5, 3.4.6, 3.4.7 of the assessment order for A.Y.2024-25 are reproduced here as under : “3.4.3. During the course of assessment proceedings, the assessee has provided all the relevant documentary evidences in respect of working as a BCA on behalf of the aforesaid companies. The assessee has submitted daily register maintained by him for working as BCA. The aforesaid register contains Aadhar, transaction amount and bank account number of customers to whom banking facilities provided by the assessee. On perusal of statement of Bank Account No. 060227700000006maintained by the assessee with Bank of India for working as a BCA, it is observed that the said bank account was credited by total amount of Rs.5,29,12,796/-(including cash amount of Rs.2,37,94,920/-) during the year under consideration Further, during the course of assessment proceedings, after perusing the financial transactions reflected in the aforesaid bank account of assessee, it is observed that the amount of commission/brokerage paid by the above mentioned company to the assessee is in accordance with transactions reflected in the aforesaid bank account during the year under consideration and same was offered by the assessee for taxation in the ITR filed for the year under consideration. During the course of assessment proceedings, the reply alongwith details/documents filed by the assessee in respect of issues involved under scrutiny have been perused and no adverse inference drawn in this regard.
3.4.5. During the year under consideration, the assessee was also working as a commission agent of society namely Shield Multi State Co- operative Credit Society Ltd (SMSCCSL) to collect the deposits/new 4 [A] deposits for the society, and also maintaining customer relationships of society. In support of the aforesaid activities, the assessee has submitted appointment letter issued by the society and also ledger of daily collection made by the assessee and commission received by the assessee during the year under consideration. On perusal of the aforesaid details/document as well as ITR filed by the assessee for the AY 2024-25, no adverse inference drawn towards income offered for taxation on account of commission received from the aforesaid society during year under consideration.
3.4.6. The assessee has also submitted copy of registered deed in respect of immovable property purchased during the year under consideration alongwith details/documents towards sources of funds utilized for purchase of immovable property. On perusal of the same, no adverse inference drawn during the course of assessment proceedings.
3.4.7. In view of the facts and circumstances of the case as discussed above, the contentions of the assessee towards issues involved in his case under scrutiny are found to be acceptable. Accordingly, no variation found in the case of assessee for the year under consideration.”
We have also perused the order of ld.CIT(A) for A.Y.2019-20 wherein, on identical facts ld.CIT(A) has set-aside the ex-parte assessment order for denovo adjudication.
In these facts and circumstances of the case, we set-aside the order u/s.144 r.w.s 147 dated17.01.2025 for A.Y.2020-21 to the Assessing Officer for denovo adjudication. Assessee shall file all 5 the necessary details before Assessing Officer. Assessing Officer Assessee. In these facts and circumstances of the case, grounds of appeal raised by the assessee are allowed for statistical purpose.
In the result, appeal of the assessee is allowed for statistical purpose. Order pronounced in the open Court on 27 January, 2026.