AVINASH RAJENDRAKUMAR GHOLAP,PUNE vs. INCOME TAX OFFICER WARD 14(5), PUNE

ORDER

PER VINAY BHAMORE, JM:

1. Under the facts and circumstances of the case and in law, Commissioner of Income Tax (Appeals) / National Faceless Appeal Centre (NFAC) erred in passing order wherein specific request of adjournment was made by assessee and same was not rejected by Ld Commissioner of Income Tax (Appeals) / National Faceless Appeal Centre (NFAC).

2. Ld Assessing Officer erred in law in making addition amounting to Rs. 1,44,43,541/- as unexplained money u/s 69A in the given facts and circumstances of the case.

if deemed necessary at the time of hearing of the appeal.”

3. The facts, in brief, are that the assessee is an individual engaged in the business of Gas Agency and Poultry Farming. The case of the assessee was reopened and notice u/s 148 of the IT Act was issued on 30.03.2021 calling for the assessee to file his return of income. Subsequently, notice u/s 142(1) was issued on 02.12.2021. But assessee failed to comply with the above said notices. Based on the information available with the Department, the Assessing Officer found that the assessee had made cash Rs.1,40,48,000/- during the period of June to October, 2015. Therefore, the Assessing Officer issued show-cause notice on 29.03.2022 and the assessee filed his reply in response to the said show-cause notice. The Assessing Officer did not accepted the reply of the assessee and completed the assessment vide order dated 30.03.2022 passed u/s 147 r.w.s. 144B of the IT Act determining the total taxable income of the assessee at Rs.1,44,43,541/- as unexplained money u/s 69A of the IT Act. The Assessing Officer also initiated the penalty proceedings u/s 271(1)(c) and section 271F of the IT Act.

Now, the law is settled to the extent that the Commissioner of Income Tax (Appeals) is bound to dispose of the appeal on merits even in the case of ex-parte orders. The settled positions of law i.e. as per section 250(6) of the IT Act, 1961 mandates the Commissioner of Income Tax (Appeals) to dispose of the appeal by adjudicating the issue raised in appeal on merits. In the circumstances, we are of the considered opinion that the ld. CIT(A)/NFAC should go into to the merits of the issue in appeal and dispose the appeal. Since the ld. CIT(A)/NFAC had not disposed off the matter on merits, we remand the matter to the file of the ld. CIT(A)/NFAC for fresh adjudication of the appeal on merits after providing reasonable opportunity of hearing to the assessee. Ld CIT(A)NFAC shall pass the order as per law after providing reasonable opportunity of being heard to the assessee. The assessee is also hereby directed to respond to the notice issued by ld. CIT(A)/NFAC and submit the requisite details on the appointed date without seeking any adjournment under any pretext, failing which ld. CIT(A)/NFAC is at liberty to pass appropriate order as per law. We hold and direct accordingly. Thus, the grounds of appeal raised by the assessee are partly allowed.