SHRI AJINKYA MAHADEV KANCHAN,PUNE vs. ITO WARD-43(3), PUNE

2. On the facts and in the circumstances of the case and in law, the Ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, NFAC, Delhi erred dismissing the appeal of the appellant for non-compliance to the notices of hearing issued by him during the appellant proceedings on 15/10/2019, 08/11/2019, 06/12/2019, 05/03/2020 and 15/01/2021 ignoring and without appreciating the facts that no such notices had been received by the appellant or by his CA/Accountant due to closure of the office of the CA/Accountant during the Covid-19 Pandemic in the said period of issuing notices and therefore the appellant had no occasion to interact with the CA/Accountant and comply to the notices even if the same had been received in appellant's e- filing portal where in the accessed to such portal was only with the said CA/Accountant since the appellant was totally ignorant about the operation of e-filing portal and was fully dependent on him for any response to any notice for income tax proceedings. The appellate order therefore so passed by the Ld. CIT(A), NFAC ignoring and without appreciating the above facts being arbitrary, illegal and bad-in-law be quashed/set-aside.

and statement of facts raised by the appellant without any application mind or giving any observation and findings in respect of the grounds of appeal raised by the appellant and without point wise discussion and analysis in the appellate order in violation of the provisions of section 250(6) of the IT Act, 1961 wherein it was categorically stated that the appeal was required to be disposed of "in writing and shall state the points for determination, the decision there on and the reason for the decision". The appellate order therefore so passed by the Ld. CIT(A), NFAC dismissing the appeal in violation of the said section being arbitrary, illegal and bad-in- law be quashed/set-aside.

4. On the facts and in the circumstances of the case and in law, the Ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, NFAC, Delhi erred in dismissing the appeal of the appellant thereby merely referring to the statement of facts and grounds of appeal raised by the appellant in Form No. 35 in the said appellate order without addressing the issues raised in the grounds by the appellant and giving his specific findings as to why such grounds and contentions in the grounds raised were not acceptable to the CIT(A) and therefore such order passed by merely quoting the entire Assessment Order in appellate order in violation of principles of natural justice and further in violation of section 250(6) of the Act being arbitrary, illegal and bad-in- law be quashed/set-aside.

5. On the facts and in the circumstances of the case and in law, the Ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, NFAC, Delhi erred in dismissing the appeal of the appellant and consequently confirming the various arbitrary additions made by the Ld. Assessing Officer in the Assessment Order ignoring and without properly appreciating the detailed submission made with documentary evidences during such assessment proceedings thereby only quoting the entire Assessment Order in the appellate order passed by him when such additions made by the Assessing Officer were not factually and legally justified in view of the facts of the case of the appellant. The appellate order therefore so passed thereby mechanically following the Assessment Order by the Ld. CIT(A), NFAC being arbitrary, illegal and bad-in-law be quashed/set- aside.

6. The appellant craves leave to add, alter, delete, amend, withdraw, modify, change or substitute any ground or grounds of appeal or to add any new ground or grounds of appeal during or before the hearing of the appeal.”

4. Facts of the case, in brief, are that the assessee is an individual and deriving income from agricultural activities and income from house property and has furnished its return of income on 17.07.2014 declaring total income of Rs.2,52,000/-. The case was selected for scrutiny under CASS and statutory notices u/s 143(2) and 142(1) respectively were issued to the assessee. In response to the above notices, the assessee made part compliance and after considering the submissions of the assessee, the Assessing Officer completed the assessment proceedings and vide order dated 29.12.2016 passed u/s 143(3) of the IT Act determined total income at Rs.4,14,76,460/- as against the income returned by the assessee at Rs.2,52,000/- only. The above assessed income includes addition of Rs.61,30,280/- u/s 56(2)(vii) of the IT Act and addition of Rs.76,00,000/- on account of unexplained investments and also an addition of Rs.2,74,94,181/- on account of capital gain on development/joint venture agreement.

Being aggrieved with the above assessment order, the assessee preferred an appeal before Ld. CIT(A)/NFAC. Since the assessee remained absent, Ld. CIT(A)/NFAC dismissed the appeal for want of prosecution.

8. Ld. DR appearing from the side of the Revenue relied on the orders passed by the subordinate authorities and requested to confirm the same.

9. We have heard Ld. Counsels from both the sides and perused the material available on record including the paper book furnished by the assessee. In this regard, we find that Ld. CIT(A)/NFAC dismissed the appeal filed by the assessee for want of prosecution without going into merits of the case. It is the sole prayer of the counsel of the assessee that if one final opportunity is provided to the assessee, he is in a position to substantiate grounds of appeal before Ld. CIT(A)/NFAC. Considering the totality of the facts of the case and in the interest of justice and without going into merits of the case, we deem it appropriate to set-aside the order passed by Ld. CIT(A)/NFAC and remand the matter back to his file with a direction to decide the appeal afresh and 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 relevant