ASIF ABDULHAK SOUDAGAR,KUMTA V. INCOME TAX OFFICER WARD -2, KARWAR, KARAWAR

ITA 145/PAN/2025

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The case involves Asif Abdulhak Soudagar, who operates Soudagar Chicken Centre in Kumta, Karnataka, and was assessed for the A.Y. 2019-20. The Assessing Officer (A.O) initiated proceedings under sections 147, 144, and 144B of the Income Tax Act, based on substantial cash deposits in the assessee's bank accounts during FY 2018-19, which were deemed undisclosed income. The CIT(A) upheld the A.O's decision due to non-compliance by the assessee in responding to notices. The Tribunal found that the CIT(A) had dismissed the appeal ex-parte without sufficient consideration of the assessee's circumstances and provided an opportunity for a re-hearing.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 830126 (ITAT-PANAJI)
• Duration Of Justice: 7 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-01-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Panaji
• Assessment Year: misc
• Appeal Filed On: 16-05-2025
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RIJULA UNIYAL.
• Assessee Lawyers: SUBRAHMANYA BHAT
• Keywords: Set aside; Business income; Principle of natural justice; Reason to believe
• Section: 147; 133(6)

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL PANAJI BENCH PANAJI BEFORE SHRI PAVAN KUMAR GADALE, JUDICIAL MEMBER & SHRI G D PADMAHSHALI ACCOUNTANT MEMBER I T A. Nos.145/PAN/2025 (A.Y. 2019-20) Asif Abdulhak Soudagar, Soudagar Chicken Centre, Old Fish Market road, Kumta, Uttarakannada-581343, Karnataka. Vs . National e – Assessment Centre, Delhi-110001. . PAN: DIYPS8481L (अपीलार्थी/Appellant) (प्रत्यर्थी/Respondent) Assessee by Shri.Subrahmanya Bhat.AR Revenue by Smt.Rijula Uniyal.Sr.DR सुनवाई की तारीख/Date of Hearing 08.01.2026 घोषणा की तारीख/Date of Pronouncement 14.01.2026 ORDER PER PAVAN KUMAR GADALE, JM: The appeal is filed by the assesse against the order of NFAC/CIT(A) passed u/sec 147 r.w.s 144 r.w.s144B of the Act and u/sec 250 of the Act. The assessee has raised the grounds of appeal challenging the ex-parte order of the CIT(A) sustaining the addition made by the Assessing Officer. 2. At the time of hearing, the Ld.AR brought to the knowledge of the bench, that there is a delay of 77 days in filing the appeal before the Hon’ble Tribunal and the Printed from counselvise.com 2 ITA. No.145/PAN/2025 Asif Abdulhak soudagar. assesse has filed the affidavit for condonation of delay. Whereas, the facts mentioned in the affidavit are reasonable and the Ld. DR has no specific objections. Accordingly, condone the delay and admit the appeal. 3. The brief facts of the case are that, the assessee is engaged in a business under the name Soudagar Chicken Centre Kumta and the assesee has not filed the return of income for A.Y.2019-2020.The Assessing Officer (AO) based on the information from ITBA data analytics NMS found that the assessee has made substantial cash deposits aggregating to (i) Rs.1,34,29,950/- in the bank account maintained with HDFC Bank and (ii) Rs.7,98,35,150/- account maintained with ICICI Bank Limited during the F.Y2018-19. The Assessing Officer (A.O) has reason to believe that the income has escaped assessment and issued notice u/sec148 of the Act and there was no compliance. Further the Assessing Officer has issued notice u/sec142(1) of the Act on the assessee to explain the sources of cash deposits made in the bank accounts and also a show cause notice was issued, but there was no compliance by the assessee. Since, no explanations/details were filed, the AO has issued notice u/sec 133(6) of the Act on the two banks and obtained bank statements of the assessee for F.Y.2018-19. The A.O. based on the bank account statements find aggregate cash deposits are Rs.9,32,65,100/- and relied on the information available on record has invoked the provisions Printed from counselvise.com 3 ITA. No.145/PAN/2025 Asif Abdulhak soudagar. of Sec. 144 of the Act and considered the nature of business of the assessee and has estimated the business income undisclosed by the assessee @10% of aggregate cash deposits which works out to Rs.93,26,510/- and finally assessed the total income of Rs.93,26,510/- and passed the order u/sec 147 r.w.s 144 r.w.s144B of the Act dated 13.12.2023. 4. Aggrieved by the order, the assesse has filed an appeal before the CIT(A), whereas the CIT(A) has considered the grounds of appeal, statement of facts and findings of the AO and has issued notices of hearing and since there was no compliance by the assessee to notices. Therefore the CIT(A) considering the information on record has confirmed the action of the A.O and dismissed the appeal. Aggrieved by the order of the CIT(A), the assessee has filed an appeal before the Hon'ble Tribunal. 5. At the time of hearing, the Ld.AR submitted that the CIT(A) has erred in confirming the action of the Assessing officer overlooking the information of the assessment proceedings and profit margin of the assesse s business. Further the Ld.AR mentioned that the assesse has a good case on merits and shall substantiate with the material evidences and prayed for an opportunity to explain before the lower authorities. Per Contra, the Ld.DR supported the order of the CIT(A). Printed from counselvise.com 4 ITA. No.145/PAN/2025 Asif Abdulhak soudagar. 6. We heard the rival submissions and perused the material on record. Prima-facie the CIT(A) has passed the order considering the fact that there is no compliance nor appearance in spite of providing adequate opportunity of hearing and the notices were issued. Therefore, the CIT(A) was of the opinion that the assesse is not interested in prosecuting the appeal and dismissed the appeal ex-parte confirming the action of the assessing officer. The CIT(A) has issued the notices of hearing on 10.06.2024,04.11.2024 and 19.12.2024 referred at Page 3 Para3.3 of the order but there was no response and thus the Ld.CIT(A) came to a conclusion that the assessee is not interested and decided the appeal based on the information available on record. Whereas the assessee has raised grounds of appeal challenging the addition made by the Assessing Officer and there could be various reasons for non appearance which cannot be overruled. Therefore, considering the facts, submissions and principles of natural justice, we shall provide with one more opportunity of hearing to the assessee to substantiate the case with evidences and information subject to payment of cost of Rs.5,000/- to the Income Tax Department within one month from the date of receipt of the order and produce the proof of payment. Accordingly, we set aside the order of the CIT(A) and remit the entire disputed issues to the file of the CIT(A) to adjudicate afresh on merits and the assesse should be provided adequate opportunity of hearing and shall cooperate in submitting the information Printed from counselvise.com 5 ITA. No.145/PAN/2025 Asif Abdulhak soudagar. for early disposal of appeal. And we allow the grounds of appeal of the assessee for statistical purposes. 7. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the open court on 14.01.2026. Sd/- Sd/- (GD PADMAHSHALI) (PAVAN KUMAR GADALE) ACCOUNTANT MEMBER JUDICIAL MEMBER Panaji Dated: 14/01/2026 Copy of the Order forwarded to: 1. The Appellant, 2. The Respondent 3. The CIT(A)- 4. CIT 5. DR, ITAT, 6. Guard file. //True Copy// BY ORDER, (Asstt. Registrar)ITAT, Panaji Printed from counselvise.com 6 ITA. No.145/PAN/2025 Asif Abdulhak soudagar. Date Initial 1. Draft dictated on PS 2. Draft placed before author PS 3. Draft proposed & placed before the second member PS 4. Draft discussed/approved by Second Member. PS 5. Approved Draft comes to the Sr.PS/PS PS 6. Kept for pronouncement on 7. File sent to the Bench Clerk 8. Date on which file goes to the AR 9. Date on which file goes to the Head Clerk. 10. Date of dispatch of Order. 11. Dictation Pad is enclosed Printed from counselvise.com "