SHAHAJI SHESHRAO BHESAR,AT GOPALPUR vs. COMMISSIONER OF INCOME TAX APPEALS, FACELESS

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ITA 874/PUN/2023Status: DisposedITAT Pune15 February 2024AY 2011-12Bench: SHRI INTURI RAMA RAO, HON. (Accountant Member)3 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that an appellate authority, even when passing an ex-parte order, must decide on merits. Since the NFAC dismissed the appeal without considering the merits, its order was set aside.

What were the facts?

The assessee, engaged in a retail business, had cash deposits of Rs. 34,69,300/- in his savings account. The Assessing Officer reopened the case and made additions for unexplained money and bank interest, as the assessee had not filed a return or responded to notices.

What were the issues?

Whether the NFAC erred by dismissing the appeal ex-parte without adjudicating on the merits of the additions made by the AO.

Which sections of the Income-tax Act were involved?

Section 147,Section 148,Section 69A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, PUNE „SMC‟ BENCHES :: PUNE

For Appellant: Shri Umesh Ruparel, AR
For Respondent: Shri Ganesh B. Budruk, DR
Hearing: 13/02/2024Pronounced: 15/02/2024

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE „SMC‟ BENCHES :: PUNE BEFORE SHRI INTURI RAMA RAO, HON. ACCOUNTANT MEMBER (A.Y. 2011-12) Shahaji Sheshrao Bhesar, vs ITO, Ward-2(5), A P Chavan Shop No.47, Aurangabad. Cannought Garden, Opp. Cidco, Aurangabad-431003 PAN: APVPB 1184 L Appellant Respondent Assessee by : Shri Umesh Ruparel, AR Revenue by : Shri Ganesh B. Budruk, DR Date of hearing : 13/02/2024 Date of pronouncement : 15/02/2024 ORDER This is an appeal filed by the assessee directed against the order of National Faceless Appeal Centre [NFAC], Delhi, dated 26.05.2023 for A.Y.2011-12.

2.

Brief facts of the case are that appellant is an individual, who is in the business of running retail shop. The case of the assessee was reopened u/sec. 147 of the Act by the Assessing Officer (AO). The reasons for reopening the case are that on verification of records available with the Department, it was seen that the assessee had deposited cash amounting to Rs. 34,69,300/- in his savings bank account. However, assessee had not filed return of income for the relevant assessment year and also not responded to the notice issued u/sec. 148, therefore, the AO made the addition of Rs. 14,67,900/-

Shahaji Sheshrao Bhesar u/sec. 69A as unexplained money and also made the addition of Rs. 3,796/- on account of interest received from the bank.

3.

Being aggrieved by the order of the AO, the assessee filed an appeal before the NFAC. As the assessee had not complied with the hearing notices, the NFAC had, exparte, dismissed the appeal of the assessee.

4.

Aggrieved by the order of the NFAC, the assessee is in appeal before this Tribunal. It is settled position of law that the appellate authority, even while passing ex-parte order should dispose of the appeal on merits based on the material on record. Since, in the present case, the NFAC had merely passed the ex-parte order without going into the merits of the addition, therefore, the impugned order is set aside and remanded the matter back to the file of NFAC for de novo consideration after affording reasonable opportunity of being heard to the assessee.

5.

In the result, appeal of the assessee is partly allowed for statistical purposes.

Order pronounced in open Court on 15th February, 2024.

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