BABU GURUNATH KALAL,BELAGAVI V. INCOME TAX OFFICER, WARD - 1, BELGAUM

ITA 236/PAN/2024

AI Insights

The case involves Babu Gurunath Kalal, the appellant, who appealed against the orders of the National Faceless Appeal Centre (NFAC) Delhi / CIT(A) concerning income tax assessments for the assessment year 2018-17. The Assessing Officer (AO) had made several additions to the assessee's income based on unsubstantiated cash deposits and other income sources, which the CIT(A) upheld due to the assessee's non-compliance and non-appearance. The Tribunal, considering the principles of natural justice, decided to remit the case back to the CIT(A) for a fresh hearing, allowing the assessee another opportunity to substantiate his claims.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 471251 (ITAT-PANAJI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-02-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: WT(D)
• Assessment Year: 2016-2017
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAVINDRA HATTALLI.
• Keywords: Set aside; Principle of natural justice
• Section: 147; 142(1); 250

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. 236/PAN/2024 (A.Y. 2018-17 ) Babu Gurunath Kalal, 1301,Old Bus Stand Ugargol, Savadatti, Belgaum-591110. Karnataka. Vs . ITO-Ward-1, Belgaum-590001, Karnataka. . PAN .No. BLIPK0004Q (अपीलाथȸ/Appellant) (Ĥ×यथȸ/Respondent) Assessee by None(letter 18-02-2025) Revenue by Shri, Ravindra Hattalli.Sr.DR सुनवाई कȧ तारȣख/Date of Hearing 19.02.2025 घोषणा कȧ तारȣख/Date of Pronouncement 19.02.2025 ORDER PER PAVAN KUMAR GADALE, JM: The appeal is filed by the assesse against the order of National Faceless Appeal Centre (NFAC) Delhi / CIT(A) passed u/sec 147 r.w.s 144B and u/sec 250 of the Act. 2. The brief facts of the case are that, the assesse is an individual and derives agricultural income. The Assessing Officer (AO) based on the information from ITBA data, found that the assesse has made cash deposits in the bank accounts during the F.Y.2015-16 and the assesse has not filed the return of income. The asseing officer has reason to believe that the income has escaped the assessment and 2 ITA. No. 236/PAN/2024 Babu Gurunath Kalal. issued notice u/sec148 of the Act. In compliance, the assessee has filed the return of income disclosing a total income of Rs.Nil and net agricultural income of Rs.9,29,820/-. Further the notice u/sec 142(1) of the Act along with questionnaire was issued and there was partial compliance. Whereas the A.O found that the assesse has made the cash deposits of Rs.63,38,500/- in the bank accounts in the F.Y.2015-16 and explanations were called to substantiate the deposits. Since,partial explanations/details were filed, the AO considering the information available on record has issued the notice u/sec133(6) of the Act on the bank. Finally the A.O. has considered the facts and information and made addition(i) u/sec69A of the Act of Rs.53,67,464/- (ii) variation in disclosing of agricultural income of Rs.5,39,436/- (iii) intrest income of Rs.52,498/-and (iv) income of Rs.1,08,000/- under income from other sources and assessed the total income of Rs.60,67,398/- and passed the order u/sec 147 r.w.s 144B of the Act dated 07.02.2024. 3. Aggrieved by the order, the assessee 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 3 ITA. No. 236/PAN/2024 Babu Gurunath Kalal. by the order of the CIT(A), the assessee has filed an appeal before the Hon'ble Tribunal. 4. We heard the Ld.DR submissions and perused the material on record and none appeared on behalf of the assesse. 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 referred at page 3 Para 4.2 of the order and 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 assesse has raised grounds of appeal challenging the additions made by the A.O and there could be various reasons for non appearance which cannot be overruled. Therefore, considering the facts 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. 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 and the assesse should be provided adequate opportunity of hearing and shall cooperate in submitting the information for early disposal of the 4 ITA. No. 236/PAN/2024 Babu Gurunath Kalal. Appeal. And, we allow the grounds of appeal of the assesse for statistical purpose. 5. In the result, the appeal filed by assessee is allowed for statistical purposes. Order pronounced in the open court on 19.02.2025. Sd/- Sd/- (GD PADMAHSHALI) (PAVAN KUMAR GADALE) ACCOUNTANT MEMBER JUDICIAL MEMBER Panaji Dated: 19/02/2025 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 5 ITA. No. 236/PAN/2024 Babu Gurunath Kalal. 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 "