Rajendra Sonu Bhangale, Jalgaon V. Income Tax Officer, Ward-1(5), Jalgaon, Jalgaon

ITA 646/PUN/2023

AI Insights

The case involves Rajendra Sonu Bhangale, the appellant, who appealed against the order of the National Faceless Appeal Centre (NFAC), which confirmed the addition of Rs. 18,80,250 to his income for the Assessment Year 2011-12. This addition was based on cash deposits in his savings account, which the Income Tax Officer (ITO) alleged were unexplained. The appellant contended that these deposits were from agricultural income received from his Hindu Undivided Family (HUF). The NFAC's order was challenged due to its perfunctory nature, as it did not adequately address the appellant's submissions or the factual background of the case. The ITAT found the NFAC's approach to be casual and lacking in independent application of mind, leading to the decision to remand the case for a thorough re-examination.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 138162 (ITAT-PUNE)
• Duration Of Justice: 2 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-08-2023
• Appeal Filed By: Assessee
• Order Result: PartlyAllowed
• Bench Allotted: SMC
• Next Hearing Date: 31-07-2023
• Assessment Year: 2011-2012
• Appeal Filed On: 24-05-2023
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Opportunity of being heard
• Section: 148; 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE „SMC‟ BENCHES :: PUNE BEFORE SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER ITA No.646/PUN/2023 (A.Y. 2011-12) Rajendra Sonu Bhangale, Plot No.12, Gat No.76, Kolhe Nagar, Behind Govt. Polytechnic, Jalgaon. PAN: AHXPB 3546 N vs ITO, Ward-1(5), Jalgaon. Appellant Respondent Assessee by : None Revenue by : Shri A.K. Mahala, DR Date of hearing : 01/08/2023 Date of pronouncement : 02/08/2023 O R D E R This appeal filed by the assessee directed against the order of National Faceless Appeal Centre [NFAC], Delhi, dated 31.03.2023 for A.Y.2011-12. 2. Brief facts of the case are that assessee is an individual deriving income from other sources. No regular income of return filed under the provisions of sec.139(1) of the Income Tax Act, 1961 (for short, „Act‟). However, the ITO, Ward-1(5), Jalgaon (hereinafter referred to as „AO‟) on the basis of AIR information that the assessee has made cash deposits in his savings bank account maintained with Godavari Laxmi Co-op. Bank Ltd., Jalgaon, notice u/sec. 148 was issued on 30/03/2008. The assessee had filed return of income in response to the notice on 29/11/2018 declaring income of Rs. 28,652/-. Against ITA No.646/PUN/2023 Rajendra Sonu Bhangale 2 the said return of income, the AO had completed the assessment vide order dated 21/12/2018 passed u/sec. 143(3) r.w.s. 147, at a total income of Rs.19,08,900/-. While doing so, the AO made the addition of cash deposits in the savings bank account of Rs.18,80,250/- rejecting the explanation of the assessee that the cash deposits were made out of the share of agricultural income received from HUF. 3. Being aggrieved by the addition, the assessee had filed appeal before the NFAC, who vide impugned order, confirmed the action of the AO. 4. Being aggrieved by the order of NFAC, the assessee is in appeal before us in the present appeal 5. When the matter was called, none appeared on behalf of the assessee despite due service of notice, therefore, after hearing the ld.Sr.DR I proceed to dispose of this appeal by considering the material available on record. 6. I had carefully perused the impugned order and find that NFAC had simply extracted the grounds of appeal, statement of facts filed with Form 35, assessment order and proceeded to dismiss the appeal without even adverting to the submissions filed by the assessee through e-proceedings and without discussing the factual background of the addition. Thus, NFAC dismissed the appeal of the assessee in perfunctory manner by adopting very casual and careless approach, without exhibiting the independent application of mind on the issues in ITA No.646/PUN/2023 Rajendra Sonu Bhangale 3 the appeal. Therefore, the order of the NFAC cannot be said to be sustainable in the eyes of law. Under these circumstances, I remand the matter back to the file of NFAC for denovo disposal of the appeal of the assessee in accordance with law after affording reasonable opportunity of being heard to the assessee. 7. In the result, appeal of the assessee stands partly allowed for statistical purposes. Order pronounced in open Court on 02 nd August, 2023. Sd/- (INTURI RAMA RAO) ACCOUNTANT MEMBER Dated : 02 nd August, 2023 vr/- Copy to : 1. The Appellant. 2. The Respondent. 3. The Pr. CIT concerned. 5. The DR, ITAT, “SMC” Bench Pune. 6. Guard File. By Order // TRUE COPY // Senior Private Secretary ITAT, Pune.