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Facts
The assessee did not file an income tax return for AY 2018-19 but filed one in response to a Section 148 notice, after which the AO made significant additions for cash deposits, business income, and interest income. The appeal to the CIT(A) was dismissed ex-parte due to the assessee's non-compliance with notices, leading the assessee to challenge the AO's jurisdiction and the Section 148A action before the ITAT.
Held
The Tribunal noted the assessee's consistent non-compliance and failure to present facts or avail opportunities before the AO and CIT(A). However, deeming it fit for proper adjudication, the impugned order was set aside and the matter was remanded back to the AO. The AO is directed to consider the assessee's submissions and pass a speaking order, with the assessee urged to cooperate.
Key Issues
Legality of AO's jurisdiction under Section 148A and the implications of the assessee's non-compliance with notices before lower authorities.
Sections Cited
Section 250, Section 148, Section 148A, Section 148A(b), Section 148A(d)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, GUWAHATI BENCH, GUWAHATI
Assessment Year: 2018-19 Than Khupa Hmar, Bethel Veng, Champhai, Mizoram, Aizawl - 796001 [PAN: ALAPH7715A] .....................…...……………....Appellant vs. DDIT, ACIT, Silchar, Silchar.DCIT@ Incometax.gov.in Silchar ...…..…................................. Respondent Appearances by: Assessee represented by : Adj. Petition Department represented by : Kausik Ray, JCIT Date of concluding the hearing : 13.08.2025 Date of pronouncing the order : 21.08.2025
ORDER
PER SANJAY AWASTHI, ACCOUNTANT MEMBER:
The present appeal arises from the order under Section 250 of Income Tax Act, 1961 (hereafter “the Act”) passed by the Ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [hereafter “the Ld. CIT(A)”], dated 05.03.2025.
1.1 In this case, the appellant had moved for an adjournment but it was decided to proceed ahead with the adjudication with the help of Ld. DR. 1.1 It is seen that in this case, the assessee did not file his return of income for AY 2018-19. However, in response to notice u/s 148 of the Act, a return of income was filed on 16.07.2022. Thereafter, the Ld. AO made Than Khupa Hmar three additions in respect of cash deposits (Rs. 5,10,32,368/-); addition in respect of business income (Rs. 2,11,02,315/-); and addition in respect of interest income (Rs. 10,55,804/-). The assessee carried this matter before the Ld. CIT(A), where he could not succeed mainly on account of the fact that the notices issued for hearing in the matter did not elicit any response and hence the appeal was disposed of in an exparte manner.
1.2 Aggrieved with this action, the assessee has filed this appeal before the ITAT with 23 grounds. Through these grounds, the legality of assuming jurisdiction by the Ld. AO has been challenged as also the action u/s 148A has been challenged as being allegedly illegal. We find that the legality surrounding the assumption of jurisdiction was also raised before the Ld. CIT(A), but due to non-compliance to the notices issued by the Ld. CIT(A), no any cognizance was taken of this specific issue.
Before us, the Ld. DR took us through the Ld. AO’s order as also the order of the Ld. CIT(A) and stated that since the fact finding could not be done at the basic level of the Ld. AO hence this matter could, at best, be remanded to the file of Ld. AO. The Ld. DR pointed out that the order u/s 148A(d) of the Act was passed on 04.04.2022 without the benefit of any reply from the assessee’s side.
We have carefully perused the orders of Ld. AO/CIT(A) and have gone through the grounds of appeal also. It is seen that neither before the Ld. AO nor before the Ld. CIT(A) did the assessee make any presentation of facts. In fact, the opportunity provided u/s 148A(b) of the Act was also not availed of. Considering the totality of facts and circumstances of this case, we deem it fit to set aside the impugned order and remand the issue back to the file of Ld. AO for considering the submissions of the assessee and thereby passing a speaking order in the matter. The assessee would do well to present the facts and his objections, if any, before the Ld. AO and invariably cooperate in the assessment proceedings.
Order pronounced on 21.08.2025