DEEPAK MAHADEV MANE, MURGUD V. INCOME TAX OFFICER WARD 1 KOLHAPUR, KOLHAPUR

ITA 993/PUN/2023

• Counselvise Citation: [2024] 100 COUNSELVISE.COM (IT) 1440 (ITAT-PUNE)
• Duration Of Justice: 9 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-06-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 12-06-2024
• Assessment Year: 2017-2018
• Appeal Filed On: 11-09-2023
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Opportunity of being heard; Condonation of delay
• Section: 147; 148; 144; 69A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH “B”, PUNE BEFORE SHRI R. K. PANDA, VICE PRESIDENT AND SHRI VINAY BHAMORE, JUDICIAL MEMBER आयकर अपील सं. / ITA No.993/PUN/2023 िनधाᭅरण वषᭅ / Assessment Year: 2017-18 Deepak Mahadev Mane, House No.407, Near Murgud Bank, Murgud- 416219. PAN : ALNPM2565L Vs. ITO, Ward-1, Kolhapur. Appellant Respondent आदेश / ORDER PER VINAY BHAMORE, JM: This appeal filed by the assessee is directed against the order dated 29.03.2023 passed by LD CIT(A)/NFAC for the assessment year 2017-18. 2. The present appeal is filed belatedly i.e. with the delay of 106 days. The appellant furnished an application/ affidavit praying for condonation of delay in the circumstances mentioned therein. Ld. DR could not controvert the averments made in the above affidavit. We are of the considered opinion that the reasons mentioned by the assessee constitute reasonable cause for not Assessee by : Shri Pramod S. Shingte Revenue by : Shri Sourabh Nayak Date of hearing : 13.06.2024 Date of pronouncement : 26.06.2024 ITA No.993/PUN/2023 2 filing the appeal within prescribed time. In the circumstances, the delay is hereby condoned and the appeal is admitted for adjudication. 3. The appellant has raised the following grounds of appeal :- “1. On the facts and circumstances of the case and in law the Ld, CIT(A), NFAC, erred in passing ex-parte order confirming the addition made by the AO u/s 69A in respect of cash deposits of Rs.1,20,54,750 even though the income from business earned in the form of commission has been taxed in his hands, the cash deposits being out of his agency business of two wheelers. The appellant craves leave to add to, amend, alter, delete or modify all or any of the above ground of appeal or raise a new ground of appeal before or at the time of hearing.” 4. The facts, in brief, are that the assessee is an individual earns income from repairing and commission on sale of two wheelers. Return of income was not filed by the assessee but on the basis of information available with the Department regarding huge cash deposits of Rs.1,20,54,750/- in his bank account, a notice u/s 148 was issued on 30.03.2021 to the assessee after reopening the assessment u/s 147 of the IT Act, 1961. Thereafter, notice u/s 142(1) was issued on 27.01.2022, but no response was received and therefore, vide order dated 10.03.2022 assessment was completed u/s 147 r.w.s. 144 of the IT Act determining income of ITA No.993/PUN/2023 3 Rs.1,22,49,983/- which includes Rs.1,20,54,750/- as unexplained money u/s 69A of the IT Act. 5. Since the assessee remained absent in first appeal, ld. CIT(A)/NFAC vide order dated 29.03.2023 dismissed the appeal of the assessee. 6. Being aggrieved with the ex-parte decision of the ld. CIT(A)/NFAC, the appellant is in appeal before us. 7. Ld. AR submitted before us that the order passed by ld. CIT(A)/NFAC is unwarranted and bad in law. It was further submitted that ld. CIT(A)/NFAC erred in not providing adequate opportunity of hearing to the assessee. It is also submitted that the assessee is not well versed with the technology and therefore completely dependent on his tax consultants for income tax purposes. Since the notices of hearing were sent only on income tax portal and the assessee was not in habit of logging on income tax portal therefore, he could not know that the notices were issued. His tax consultants also did not inform him about the hearing dates, therefore it was prayed before the bench to set-aside the ex-parte order passed by ld. CIT(A)/NFAC and further requested to direct ld. CIT(A)/NFAC to provide further ITA No.993/PUN/2023 4 opportunity of hearing to submit documents in support of grounds of appeal. 8. LD. DR supported the order passed by the subordinate authorities. 9. We have heard Ld. Counsel from both the sides and perused the material available on record. We find that ld. CIT(A)/NFAC has issued total four notices to the assessee but all the notices were issued on email mentioned on the income tax portal. It is the contention of the ld. counsel of the assessee that the assessee is not familiar with the technology due to which he could not see the hearing notices issued by ld. CIT(A)/NFAC. As soon as the assessee came to know about the above ex-parte order he immediately appointed a new tax consultant and approached before this Tribunal. Therefore, in the interest of justice, we deem it proper to provide another opportunity of hearing to the assessee so that he can substantiate his case by filing submission/documents in support of grounds of appeal. We therefore without going into the merits of the case set-aside the ex-parte order passed by ld. CIT(A)/NFAC and remand the matter back to his file with the direction to decide the appeal on merits after providing reasonable opportunity of hearing to the assessee. Ld. CIT(A)/NFAC shall ITA No.993/PUN/2023 5 pass the order as per fact and law after providing reasonable opportunity of being heard to the assessee. The assessee is also hereby directed to respond to the notice issued by ld. CIT(A)/NFAC and submit the requisite details on the appointed date without seeking any adjournment under any pretext, failing which ld. CIT(A)/NFAC is at liberty to pass appropriate order as per law. We hold and direct accordingly. Thus, the ground of appeal raised by the assessee is allowed. 10. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the open Court on 26 th June, 2024. Sd/- Sd/- (R. K. PANDA) (VINAY BHAMORE) VICE PRESIDENT JUDICIAL MEMBER पुणे / Pune; ᳰदनांक / Dated : 26 th June, 2024. Sujeet आदेश कᳱ ᮧितिलिप अᮕेिषत / Copy of the Order forwarded to : 1. अपीलाथᱮ / The Appellant. 2. ᮧ᭜यथᱮ / The Respondent. 3. The Pr. CIT concerned. 4. िवभागीय ᮧितिनिध, आयकर अपीलीय अिधकरण, “B” बᱶच, पुणे / DR, ITAT, “B” Bench, Pune. 5. गाडᭅ फ़ाइल / Guard File. आदेशानुसार / BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण, पुणे / ITAT, Pune.