INDIRA BHARATGAS AGENCY,NANDED V. INCOME TAX OFFICER WARD-1, NANDED

ITA 1541/PUN/2024

AI Insights

The case involves Indira Bharatgas Agency, a partnership firm engaged in LPG gas distribution, which appealed against the order of the National Faceless Appeal Centre (NFAC), Delhi. The NFAC had dismissed their appeal ex parte regarding an assessment order that added a total income of Rs. 32,00,000 for the assessment year 2017-18, based on unexplained cash deposits. The ITAT found that the appellant was not properly notified of the hearing, as the notices were sent to the email of a former accountant. Consequently, the ITAT set aside the NFAC's order and remanded the case for a new assessment.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 471162 (ITAT-PUNE)
• Duration Of Justice: 2 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-10-2024
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Next Hearing Date: 09-10-2024
• Assessment Year: 2017-2018
• Appeal Filed On: 26-07-2024
• Laws Referred To: Income Tax Act
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: HARSHAD S. AARADHI
• Assessee Lawyers: DEEPA KHARE
• Keywords: Set aside; Opportunity of being heard

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH “SMC”, PUNE BEFORE SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER आयकर अपील सं. / ITA No.1541/PUN/2024 \u000bनधा\u000fरण वष\u000f / Assessment Year : 2017-18 Indira Bharatgas Agency, Plot No.12, Shop No.02, M/s. Indira Bharat Gas Agency, Kabra Nagar, Nanded – 431 506 Maharashtra PAN : AAFFI 5287C Vs. ITO, Ward-1, Nanded Appellant Respondent आदेश / ORDER PER INTURI RAMA RAO, AM: This is an appeal filed by the appellant directed against the order of National Faceless Appeal Centre (NFAC), Delhi dated 30.10.2023 for the assessment year 2017-18. 2. Brief facts of the case are that the appellant is a partnership firm engaged in the business of distribution of LPG Gas. The Return of Income for the A.Y. 2017-18 was filed on 15.11.2017 declaring loss of Rs.5,60,336/- Against the said return of income, the assessment was completed by the Assessing Officer (AO) vide order dated 28.11.2019 passed u/s.143(3) at a total income of Rs.32,00,000/-. While doing so, the AO made addition of cash deposits made with the Central Bank of India Assessee by : Smt. Deepa Khare Revenue by : Shri Harshad S. Aaradhi Date of hearing : 09.10.2024 Date of pronouncement : 09.10.2024 ITA No.1541/PUN/2024 2 of Rs.20,00,000/- on 13.11.2016 and Rs.12,00,000/- on 11.11.2016 on the failure of the appellant to explain the source of the cash deposits. 3. Being aggrieved by the above addition, an appeal was filed before the NFAC who vide impugned order dismissed the appeal ex parte. 4. Being aggrieved, the appellant is in appeal before this Tribunal in the present appeal. 5. At the outset, I find the appeal is time barred by limitation by 269 days. The appellant had filed an affidavit praying for condonation of delay on the ground that the delay had occurred on account of service of the order of the NFAC on e-mail id of the Accountant Mr. Pandurang Bhalke ,who left the services of the firm and the appellant came to know of the order passed by the NFAC only in the month of July, 2023 while the account was logged in for filing the return of income on Income-tax portal. Thus, it is prayed that the delay in filing the appeal be condoned. 6. The ld. SR. DR vehemently opposed the submissions made with regard to condonation of delay. 7. Having gone through the averments made in the affidavit for condonation of delay, I find this is a fit case to condone the delay as there is no material to contrary to disbelieve the averments. I therefore condone the delay of 269 days in filing the appeal and admit the appeal for adjudication. 8. I heard the rival submissions and perused the material on record. On merits, I find that the impugned order by the NFAC is an ex parte one in the absence of the appellant. It was stated before me that the hearing notices were issued through e-mail id of the Accountant which were not brought to the notice of the appellant. Therefore, it is prayed that the appellant be given one more opportunity to explain the case properly. ITA No.1541/PUN/2024 3 The ld. Sr. DR has no serious objection for remanding the matter. Therefore, in the interest of justice, I set aside the matter to the file of Assessing Officer for denovo assessment in accordance with law after affording due opportunity of being heard to the appellant. 9. In the result, the appeal filed by the assessee is partly allowed for statistical purposes. Order pronounced on this 09th day of October, 2024. Sd/- (INTURI RAMA RAO) JUDICAL MEMBER ACCOUNTANT MEMBER पुणे / Pune; \u0001दनांक / Dated : 09th October, 2024. Satish आदेश क\u0002 \u0003ितिलिप अ\tेिषत / Copy of the Order forwarded to : 1. अपीलाथ\f / The Appellant. 2. \r\u000eयथ\f / The Respondent. 3. The Pr. CIT concerned. 4. िवभागीय \rितिनिध, आयकर अपीलीय अिधकरण, “SMC” ब\u0014च, पुणे / DR, ITAT, “SMC” Bench, Pune. 5. गाड\u0004 फ़ाइल / Guard File. आदेशानुसार / BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण, पुणे / ITAT, Pune. "