SUNIL YASHWNT PATIL,SANGLI vs. ACIT, CIRCLE SAGLI, SANGLI

When the appeal was called on, none appeared on behalf of the appellant despite due service of notice of hearing. After hearing the ld. DR and perusing the material on record, we proceed to dispose of the appeal ex parte qua the appellant.

Briefly, the facts of the case are that the appellant is a Medical Practitioner. Return of income for the A.Y. 2017-18 was filed on 31.03.2018 declaring total income of Rs.58,10,500/-. The case was selected under Computer-assisted Scrutiny Selection (CASS) for examination of ‘Large payments made u/s.194C to persons who have not filed return of income’. On perusal of Form No.3CD, the Assessing Officer (AO) noticed that the appellant made payment to contractors amounting to Rs.3,18,84,300/- and deducted TDS of Rs.3,18,843/- u/s.194C of the Act. The appellant did not either respond to statutory notice u/s.143(2) or notice u/s.142(1). On failure of the appellant to comply with the statutory notices and justify the genuineness of the contract expenses made, the AO completed the assessment u/s.144 of the Act disallowing the contract expenses of Rs.3,18,84,300/-.

Against the above assessment order, an appeal was filed before the NFAC, who vide impugned order dismissed the appeal of the appellant for non-prosecution without dwelling into the reasoning adopted by the AO.

Being aggrieved by the order of NFAC, the appellant is in appeal before the Tribunal.

Heard the ld. DR and carefully perused the relevant material on record. We find the NFAC had proceeded to dispose of appeal without discussing the factual background of the addition made by the Assessing Officer and as well as without referring to the legal position applicable to the facts of the case, in our considered opinion the approach adopted by the NFAC does not exhibit that the NFAC had applied mind to the facts of the present case and arrived at a conclusion. Therefore, it cannot be termed that the order passed by the NFAC is on merits. Thus, the order passed by the NFAC is hereby set-aside and remanded to the file of the CIT(A)/NFAC with a direction that the issue in appeal should be adjudicated de novo in accordance with law after affording reasonable opportunity of being heard to the assessee. Accordingly, the grounds of appeal filed by the assessee stand partly allowed.

In the result, the appeal of the assessee stands partly allowed for statistical purposes. Order pronounced on this 22nd day of April, 2024.