SOHANLALJI ASHOK SEERVI ,BANGALORE vs. INCOME TAX OFFICER, WARD-1(2)(2) , BENGALURU

Date of Hearing : 18.03.2024 Date of Pronouncement : 18.03.2024 O R D E R PERLAXMI PRASAD SAHU, ACCOUNTANT MEMBER:

This appeal filed by the assessee is directed against ex-parte order passed by NFAC u/s 250 of the Income Tax Act, 1961 (in short “The Act”) vide order dated 30.10.2023 with DIN & Order No.ITBA/NFAC/S/250/2023-24/1057492214(1) for the assessment year 2017-18. The sole issue raised by the assessee is on addition made u/s 69A of the Act at Rs.72,92,966/- and taxed u/s 115BBE of the Act.

Sohanlalji Ashok Seervi, Bangalore Page 2 of 5 2. Brief facts of the case are that the assessee has not filed return of income u/s 139 of the Act. Accordingly, notice u/s 142(1) of the Act was issued to the assessee but the assessee did not comply to the same. Hence, the ld. AO issued notice u/s 133(6) of the Act to the bank and obtained bank statement. Accordingly, it was observed that the assessee has maintained bank accounts in Union Bank of India A/c No.45770201057554 and in United Commercial Bank alone assessee is having 6 bank accounts (1) 06240610011485 (2) 06240610015728 (3) 06240610011140 (4) 06240610017456 (5) 06240610012284 (6) 06240610012574 wherein the total cash deposits in both banks during the year under consideration on various dates are found at Rs.72,82,172/-. The assessee did not file return of income u/s 139(1) of the Act and hence the case was completed u/s 144 of the Act. The entire cash deposited was treated as income of the assessee, tax payable was calculated u/s 115BBE of the Act and passed order on 8.10.2019.

2.1 Aggrieved from the above order, the assessee filed appeal before this Income Tax Appellate Tribunal. The ld. NFAC/CIT(A) issued various notices to the assessee on different dates as per para 4 of his order. However, the assessee did not comply to any of the notices. Accordingly, the appeal was dismissed.

2.2 Aggrieved from the above order, the assessee filed an appeal before us with a delay of 52 days. During the course of hearing, the ld. A.R. of the assessee stating the reasons for delay in filing appeal vide its affidavit dated 15.03.2024 along with a petition to condone the delay explaining the reason that the assessee had visited the office of Sohanlalji Ashok Seervi, Bangalore Page 3 of 5 the Counsel in first week of February with one of his relative for some consultation in Income Tax matters casually enquired about the status of the appeal filed and then the concerned Chartered Accountant logged into the portal and found that the appellate order has already been passed in the case of the assessee in October, 2023 itself. Then the matter was discussed and arrangements were made to file the appeal before the ITAT with a delay of 52 days The said Chartered Accountant further observed that the assessee was not in receipt of any of the notices issued by the ld. NFAC/CIT(A) for which the appeal could not be pursued, therefore, he requested that if a chance is given to the assessee, the assessee will comply with the notices for completion of the assessment.

Sohanlalji Ashok Seervi, Bangalore Page 4 of 5 4.1 Considering the rival submissions, we noted that assessment was completed u/s 144 of the Act and before the ld. CIT(A), the case was also decided ex-parte by the NFAC/CIT(A). The NFAC has issued various notices which were not responded. However, considering the prayer of the ld. A.R. for the assessee and in the interest of justice, we are remitting the issue back to the file of the ld AO for de-novo consideration. The ld. AO is directed to give reasonable opportunity of being heard to the assessee and decide the issue as per law. The assessee is directed to produce the necessary documents for substantiating his case and to avoid unnecessary adjournments for early disposal of the case and update the email, mobile number and address for communication.