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Income Tax Appellate Tribunal, PUNE ‘B’ BENCH, PUNE
Before: HON’BLE SHRI SATBEER SINGH GODARA & SHRI G. D. PADMAHSHALI
ORDER PER G. D.PADMAHSHALI, AM; By present appeal, the assessee impugns the ex-parte DIN & order No. ITBA/NFAC/S/250/2023-24/1062491376(1) dt. 12/03/2024 passed u/s 250 of the Income-tax Act, 1961 [‘the Act’ hereinafter] by the National Faceless Appeal Centre [‘CIT(A)/NFAC’ hereinafter] which in turn confirmed the ex-parte order of assessment passed u/s 144 r.w.s. 147 of the Act by the National Faceless Assessment Centre [‘AO’ hereinafter] for assessment year 2018-19 [‘AY’ hereinafter]; ITAT-Pune Page 1 of 3
Dinesh Chhaganlal Dave Vs ITO 2. The case was called twice; none appeared at the behest of the assessee, the absence is also not supported by any letter of adjournment, therefore with the able assistance from the Revenue we thought it fit to adjudicate the minor issue involved in the appeal ex-parte u/r 24 of ITAT- Rules, 1963.
We have heard Ld. DR and submission made on the limited issue of ex-parte assessment and ex-parte dismissal of appeal by the first appellate authority; and subject to provisions of rule 18 of ‘ITAT Rules’ perused material placed on record.
We note that, on the information that the assessee deposited huge cash in his bank account the case of the assessee was reopened u/s 148 of the Act. In the event of non-compliance and effective failure of the assessee to substantiate the nature & sources of cash deposits the Ld. AO framed the assessment ex-parte to the best of his judgement u/s 144 r.w.s. 147 of the Act. Aggrieved assessee instituted an appeal against such ex-parte assessment before Ld. NFAC on 29/03/2023 wherein the first appellate authority provided three opportunity of hearing to the assessee vide notices dt. 12/12/2023, 07/02/2024 & 20/02/2024 allowing thereby insufficient time to place cogent material therefore such notice remained unattended & non-complied. In the absence of effective representation and deprecative evidences, the Ld. NFAC dismissed the appeal of the assessee ex-parte in line with the findings of the Ld. AO. ITAT-Pune Page 2 of 3
Dinesh Chhaganlal Dave Vs ITO 5. Having considered the material placed on records we hold that, the reasons behind such non-compliance occurred before both the tax authorities below was undeliberate and accidental. Having regards to the facts & circumstances, after vouching reasons behind non-compliance, in the larger interest of justice we are of the view that the assessee for sufficient reasons prevented from representing himself before both the tax authorities below. In the event we deem it proper to accord one more opportunity to the assessee to enable him to place evidential material explaining nature & sources of cash deposits before the Ld. NFAC who shall consider the same and decide the issue in accordance with law.
In view hereof, without commenting on merits, we set-aside the impugned order and remit the matters back to the file of Ld. NFAC with a direction to adjudicate the subject matter de-novo in accordance with law after providing two effective opportunities to the appellant assessee.
The appeal in result is ALLOWED FOR STATISTCIAL PURPOSES. U/r 34 of ITAT Rules, order pronounced in open court on this Tuesday, 27th day of August, 2024.
-S/d- -S/d- S. S. GODARA G. D. PADMAHSHALI JUDICIAL MEMBER ACCOUNTANT MEMBER पुणे / PUNE; दिन ांक / Dated : 27th day of August, 2024. आदेशकीप्रतितितिअग्रेतिि / Copy of the Order forwarded to : 1.अपील र्थी / The Appellant. 2. प्रत्यर्थी / The Respondent. 3. The Pr.CIT Concerned. 6.ग र्डफ़ इल / Guard File. 4. The CIT-Concerned(MH-India) 5. DR, ITAT, Bench ‘B’, Pune आिेश नुस र / By Order वररष्ठदनजीसदिव / Sr. Private Secretary आयकरअपीलीयन्य य दिकरण, पुणे / ITAT, Pune.
ITAT-Pune Page 3 of 3