BOYINA VINODA,MACHILIPATNAM vs. INCOME TAX OFFICER, WARD-1, MACHILIPATNAM
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Income Tax Appellate Tribunal, VISAKHAPATNAM BENCH, VISAKHAPATNAM
Before: SHRI DUVVURU RL REDDY, HON’BLE & SHRI S BALAKRISHNAN, HON’BLE
PER DUVVURU RL REDDY, Judicial Member :
This appeal filed by the assessee is against the order of the Learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi [“Ld. CIT(A)-NFAC”] in DIN & Order No. ITBA/NFAC/S/250/2024-25/1065862590(1), dated 20/06/2024
2 arising out of the order passed U/s. 147 r.w.s 144 r.w.s 144B of the Income Tax Act, 1961 [“the Act”] for the AY 2016-17.
Briefly stated the facts of the case are that the assessee is an individual. As per the information available with the Department, the Ld. AO observed that the assessee carried out certain transactions during the FY 2015-16 relevant to the AY 2016-17 aggregating to Rs. 1,02,17,720/-. However, the assessee failed to furnish the return of income U/s. 139(1) of the Act. Subsequently, the Ld. AO issued a notice U/s. 148A(b) of the Act wherein the assessee was required to show-cause as to why notice U/s. 148 should not be issued on the basis of the information available with the Department which suggests that the tax has escaped assessment. The notice was duly served on the assessee by post on 25/02/2023. In response, the assessee filed his reply along with documents on 17/03/2023. On perusal of the assessee’s reply, the Ld. AO observed that the assessee has not furnished any documentary evidence for proof for his commission business. Therefore, the Ld. AO, in the absence of any documentary evidence, reopened the case of the assessee U/s. 148 of the Act based on the material available on record. Subsequently, the assessee’s case was selected for proceedings
3 U/s. 147/148 of the Act for the AY 2016-17 with the prior approval of the competent authority and a notice U/s. 148 of the Act was issued on 27/03/2023 and the assessee was required to furnish the return of income within 30 days for the AY 2016-17. However, the assessee failed to file his return of income in response to notice U/s. 148 of the Act. Later on notices U/s. 142(1) of the Act were issued along with questionnaires however, the assessee did not comply with the notices issued U/s. 142(1) of the Act. Considering the assessee’s non-compliance to the notices U/s. 142(1) of the Act, the Ld. AO proposed to invoke the provisions of section 144 of the Act and issued a show cause notice on 21/01/2014. In response, the assessee filed its reply through e-proceedings platform. After considering the submissions of the assessee, the Ld. AO observed that the transactions in the form of cash deposits made in the bank accounts of the assessee aggregating to Rs. 1,02,17,720/- is the unaccounted money of the assessee as he could not furnish any cogent evidence to prove the transactions. Accordingly, the Ld. AO made addition of Rs.1,02,17,720/- as unaccounted money U/s. 69A r.w.s 115BBE of the Act on account of variation. Thus, the Ld. AO determined the total income of the assessee at Rs. 1,02,17,720/- and passed the assessment order U/s. 147 r.w.s
4 144 r.w.s 144B of the Act, dated 15/03/2024. Aggrieved by the order of the Ld.AO, the assessee filed an appeal before the Ld. CIT(A)-NFAC.
On appeal, since there was no response from the assessee with respect to the hearing notices issued and in the absence of any representation on behalf of the assessee, the Ld. CIT(A)-NFAC passed the order ex-parte dismissed the assessee’s appeal. Aggrieved by the order of the Ld. CIT(A)-NFAC, the assessee is in appeal before the Tribunal by raising the following grounds of appeal:
“ 1. In the facts and circumstances of case, Ld. CIT(A) erred in dismissal of the appeal ex-parte without considering the facts of the case. 2. The Ld. Cit(a) has replicated the assessment order and dismissed the appeal but has not adjudicated the case on merits. 3. The issue of Notice dated 22/2/2023 U/s. 148A(b) by the JAO was bad in law (ie., Sec 151A r.w the Faceless Assessment Scheme) and as such all the subsequent proceedings are also bad in law. 4. The appellant craves leave to add or amend the grounds of appeal.”
At the outset, the Ld. Authorized Representative [“Ld. AR”] submitted before us that the Ld. CIT (A)-NFAC has passed ex-parte order without providing proper opportunity to the assessee of being heard. It was therefore pleaded that the matter may be remitted back to the file of the Ld CIT (A)-NFAC in order to provide one more opportunity to the assessee of being heard.
5 5. Ld. Departmental Representative [“Ld. DR”], on the other hand, vehemently opposed to the submissions of the Ld. AR and argued that several opportunities had been provided to the assessee however, on the given dates of hearing, neither the assessee nor his Representative has responded to the notices issued nor filed any details / submissions as called for by the Ld. CIT (A)-NFAC. It was further submitted that, under these circumstances, the Ld. CIT (A)-NFAC had no other option but to pass ex-parte order based on the materials available on record. Hence, it was pleaded that the order passed by the Ld. CIT(A)-NFAC does not call for any interference.
We have heard the both the sides and carefully perused the materials available on record. On examining the facts of the case, we find that the Ld. CIT (A)-NFAC had posted the case on several occasions. However, there was no response on behalf of the assessee before the Ld. CIT(A)-NFAC on the dates of hearing with regard to the details / submissions as called for by the Ld. CIT(A)-NFAC. Therefore, the Ld. CIT (A)-NAFC was left with no other option except to adjudicate the appeal ex-parte and dismissed the appeal by confirming the additions made by the Ld. AO. On perusal of the above decision of the Ld. CIT(A)-NFAC, we are of the view that the Ld. CIT(A)-NFAC extracted the total assessment order of the Ld. AO however he did not adjudicate the appeal on merits
6 based on the material available on record. In this situation, considering the issues involved in the appeal, as well as considering the prayer of the Ld. AR, and in the interest of justice, strictly following the principles of natural justice, we hereby remit the matter back to the file of Ld. CIT (A)- NFAC in order to consider the appeal afresh and decide the case on merits by providing one more opportunity to the assessee of being heard in accordance with the principles of natural justice. At the same breath, we also hereby caution the assessee to promptly co-operate before the Ld. CIT (A)-NFAC in the proceedings failing which the Ld. CIT (A)-NFAC shall be at liberty to pass appropriate order in accordance with law and merits based on the materials available on the record. It is ordered accordingly.
In the result, appeal filed by the assessee is allowed for statistical purposes as indicated hereinabove.
Pronounced in the open Court on 27th September, 2024. Sd/- Sd/- (एस बालाकृ�णन) (दु�वू� आर.एल रे�ी) (S.BALAKRISHNAN) (DUVVURU RL REDDY) लेखा सद�य/ACCOUNTANT MEMBER �याियकसद�य/JUDICIAL MEMBER Dated :27/09/2024 OKK - SPS
आदेश की �ितिलिप अ�ेिषत /Copy of the order forwarded to:- 1. िनधा�रती/ The Assessee – Boyina Vinoda, 21/225-1A, Batchupeta Kennedy Road, Machilipatnam, Krishna Districit – 521001, Andhra Pradesh. 2. राज�व/The Revenue – The Income Tax Officer, Ward-1, Aayakar Bhavan, Parasupeta, Machilipatnam-521001, Andhra Pradesh-521001. 3. The Principal Commissioner of Income Tax, 4.आयकर आयु� (अपील)/ The Commissioner of Income Tax (Appeals), 5. िवभागीय �ितिनिध, आयकर अपीलीय अिधकरण, िवशाखापटणम/ DR, ITAT, Visakhapatnam 6.गाड� फ़ाईल / Guard file आदेशानुसार / BY ORDER
Sr. Private Secretary ITAT, Visakhapatnam
