JOHN MENDES, NERUL,BARDEZ V. INCOME TAX OFFICER, WARD 2(2), PANAJI

ITA 191/PAN/2023

AI Insights

The case involves John Mendes, the appellant, who appealed against the orders of the National Faceless Appeal Centre (NFAC) Delhi / CIT(A) concerning assessments made under sections 144 and 250 of the Income Tax Act. The Assessing Officer (AO) had made additions to Mendes' income based on unsubstantiated cash deposits during the demonetization period, totaling Rs. 11,19,000. Mendes did not comply with notices under section 142(1) nor appeared before the CIT(A), leading to an ex-parte decision confirming the AO's additions. The Tribunal, considering the lack of compliance and the principles of natural justice, decided to remit the case back to the CIT(A) for a fresh hearing.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 471255 (ITAT-PANAJI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-12-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: WT(D)
• Assessment Year: 2017-2018
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NAZEERA MOHAMMED.
• Keywords: Set aside; Business income; Principle of natural justice
• Section: 144; 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. 191/PAN/2023 (A.Y. 2017-18 ) John Mendes, 241, Nerul,Bhatiwada, Bardez, Goa-403114. Vs . ITO-Ward-2(2), Panaji, Goa-403001. . PAN .No. AHTPM7735L (अपीलाथȸ/Appellant) (Ĥ×यथȸ/Respondent) Assessee by None(letter 27-12-24) Revenue by Ms.Nazeera Mohammed.Sr.DR सुनवाई कȧ तारȣख/Date of Hearing 30.12.2024 घोषणा कȧ तारȣख/Date of Pronouncement 31.12.2024 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 144 and u/sec 250 of the Act. 2. The brief facts of the case are that, the assessee is engaged in the business. 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 demonetization period and the assesse has not filed the return of income and further the notice u/sec 142(1) of the Act along with questionnaire was issued and there was no compliance. Whereas the A.O found that the 2 ITA. No. 191/PAN/2023 John Mendes. assesse has made deposits including the cash deposit of Rs.11,19,000/- in the bank accounts in the F.Y.2016-17 and explanations were called to substantiate the deposits. Since, no explanations/details were filed, the AO considering the information available on record has invoked the provisions of Sec. 144 of the Act and made addition u/sec69A of the Act of Rs.11,19,000/- and estimated the business income of Rs.12,47,810/- and finally assessed the total income of Rs.23,66,610/- and passed the order u/sec 144 of the Act dated 26.09.2019. 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 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 3 ITA. No. 191/PAN/2023 John Mendes. confirming the action of the assessing officer. The CIT(A) has issued the notices of hearing on 7-10-2021,8-06- 2023,21-06-2023,23-08-2023 and 29-08-2023 referred at Para 7 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 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 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 31.12.2024 Sd/- Sd/- (GD PADMAHSHALI) (PAVAN KUMAR GADALE) ACCOUNTANT MEMBER JUDICIAL MEMBER Panaji Dated: 31/12/2024 4 ITA. No. 191/PAN/2023 John Mendes. 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 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 "