MAHESH KUMAR SHARMA,BHIND vs. INCOME TAX OFFICER 2(1) GWALIOR, GWALIOR
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Income Tax Appellate Tribunal, AGRA BENCH, AGRA
Before: SHRI S. RIFAUR RAHMAN & SHRI SUNIL KUMAR SINGH
IN THE INCOME TAX APPELLATE TRIBUNAL, AGRA BENCH, AGRA BEFORE : SHRI S. RIFAUR RAHMAN, ACCOUNTANT MEMBER AND SHRI SUNIL KUMAR SINGH, JUDICIAL MEMBER ITA No. 233/Agr/2025 Assessment Year: 2019-20
Mahesh Kumar Sharma, Vs. Income-tax Officer, In front of Shiv Utsav Vatika, Ward 2(1), Gwalior. Ater Road, Ward-1, Bhind (MP) PAN :AZBPS6878C (Appellant) (Respondent) Assessee by Sh. Rajendra Sharma, Advocate Department by Sh. Anil Kumar, Sr. DR Date of hearing 21.08.2025 Date of pronouncement 26.09.2025
ORDER PER : SUNIL KUMAR SINGH, JUDICIAL MEMBER:
This appeal has been preferred by assessee against the impugned order dated 26.02.2025 passed in Appeal No. NFAC/2018-19/10330543 by the Ld. Commissioner of Income-tax (Appeals), NFAC, Delhi u/s. 250 of the Income-tax Act, 1961 (hereinafter referred to as “the Act”) for the assessment year 2019-20, wherein the ld. CIT(Appeals) has dismissed assessee’s first appeal exparte. 2. Brief facts state that the assessee is a non-filer. Based on the information available with the department that the assessee had made
ITA No.233/Agr/2025
cash deposits including deposits through bearer’s cheque in his current
account with Central Bank of India, amounting to Rs.1,19,04,250/-, the
Assessing Officer initiated proceedings u/s. 147 and issued notice u/s.
148 of the Act, which remained un-responded. Thereafter, several
statutory notices were issued, but for no avail. Hence, the Assessing
Officer added and assessed total income of Rs. 1,19,04,250/- u/s. 69A
r.w.s 115BBE, vide assessment order dated 21.02.2024 passed u/s. 147
r.w.s. 144 and 144B of the Act.
Aggrieved assessee preferred an appeal before ld. CIT(Appeals),
who dismissed assessee’s first appeal ex parte.
This second appeal has been filed on the ground, in addition to
others on merits, that the impugned order is liable to be set aside, having
not been passed in accordance with section 250(6) of the Act without
providing proper opportunity of hearing to the assessee.
Perused the records. Heard ld. Representative for assessee and ld.
DR for revenue.
Learned AR, though initially prayed to remand the matter back to
the ld. CIT(Appeals) in accordance with ground No. 1 of the appeal, but
at the later stage of the arguments, it was has vehemently submitted that
the assessment order too was passed u/s. 144 r.w.s. 147 of the Act for
want of any submission on behalf of the assessee to explain the source 2 | P a g e
ITA No.233/Agr/2025
of impugned deposits in the bank account. He, therefore, corrected his
arguments and prayed to remand the matter back to the file of Assessing
Officer to provide one more opportunity to the appellant assessee to
explain and verify the cash deposits in the bank account.
Learned DR has supported the orders of authorities below.
It transpires from the perusal of the assessment order that due to
irresponsive conduct of the assessee, learned Assessing Officer was
compelled to pass best judgment assessment u/s. 144 of the Act.
Similarly, ld. CIT(Appeals) was also compelled to pass ex parte
impugned order due to non-submission on behalf of the assessee
despite various notices dated 07.10.2024, 28.10.2024, 21.11.2024 and
05.02.2025 issued to the appellant assessee. Such an irresponsive and
reluctant conduct of the assessee is unacceptable, however, in the
totality of facts and circumstances and in the interest of justice, we deem
it just and proper to afford an opportunity to the appellant assessee to
make his submissions and explain impugned cash deposits before the
Assessing Officer. The matter is thus remitted back to the file of
Assessing Officer for passing order afresh in accordance with law after
taking assessee’s submissions into consideration. We further direct the
assessee to be diligent and cooperative in attending the proceedings and
making submissions before the learned Assessing Officer for the 3 | P a g e
ITA No.233/Agr/2025
expeditious and effective disposal. Needless to say that learned
Assessing Officer shall ensure the observance of the principles of natural
justice.
In the result, appeal is allowed for statistical purposes. The
impugned order dated 26.02.2025 and assessment order dated
21.02.2024 stand set aside.
Order pronounced in the open court on 26.09.2025.
Sd/- Sd/- (S. RIFAUR RAHMAN) (SUNIL KUMAR SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 26.09.2025 *aks/- Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(A) 5. DR Asst. Registrar, ITAT, Agra
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