POPATLAL TEJRAJ GANDHI,PUNE V. THE INCOME TAX OFFICER, WARD11(1), PUNE

ITA 855/PUN/2025

AI Insights

The case involves Popatial Tejraj Gandhi, who appealed against the order of the Commissioner of Income Tax (Appeals) for the Assessment Year 2021-22. The primary contention was the dismissal of his appeal in limine by the CIT(A) without adjudicating on the merits, despite the presence of substantial issues regarding large cash deposits in the assessee's bank account. The ITAT noted the absence of the assessee's representation and the reliance on judicial precedents by the CIT(A) to dismiss the appeal for want of prosecution. However, following the precedent set by the Bombay High Court in Pr.CIT (Central) Vs. Premkumar Arjundas Luthra (HUF), the ITAT directed that the appeal be considered on its merits, irrespective of the procedural lapses by the assessee.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 361066 (ITAT-PUNE)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-05-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: 2021-2022
• Other Referred Cases: Pr.CIT (Central) Vs. Premkumar Arjundas Luthra (HUF) [2017] 297 CTR 614 (Bombay)
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MANISH MEHTA
• Keywords: Reasonable cause
• Section: 142(1)

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL PUNE “B” BENCH : PUNE BEFORE DR. MANISH BORAD, ACCOUNTANT MEMBER AND SHRI VINAY BHAMORE, JUDICIAL MEMBER I.T.A.No.855/PUN/2025 (Assessment Year 2021-22) Popatial Tejraj Gandhi, Zaveri Arcade Marwad Peth, Baramati, Pune-413 102 PAN : ABMPG 3609 E vs. ITO, Ward-11(1), Pune (Appellant) (Respondent) For Assessee : None For Revenue : Shri Manish Mehta, Addl. CIT Date of Hearing : 15.05.2025 Date of Pronouncement : 21.05.2025 ORDER PER DR. MANISH BORAD, AM: This appeal by the assessee is directed against the order dated 29.01.2025 of the Ld. Commissioner of Income Tax (Appeals)/NFAC, Delhi [“CIT(A)”] for the A.Y. 2021-22 2. When the case is called for, none appeared on behalf of the assessee, even when valid notice of hearing has been issued. With the assistance of Ld.DR, we, on perusal of the record, noticed that the impugned order is an exparte and Ld. CIT(A) has dismissed the appeal in limine by applying judicial precedents, but has failed to adjudicate the issues on merits. 3. Ld.DR raised no objection if the issues raised in the instant appeal are restored back to the file of the Ld. CIT(A) for necessary adjudication on merits. 2 ITA.No.855/PUN./2025 (Popatial Tejraj Gandhi) 4. We have heard Ld.DR and perused the record placed before us. We observe that the assessee is an individual and had declared income of Rs. 15,96,270/- in the e-return for A.Y. 2021-22 filed on 26/03/2022. The said return selected for scrutiny through CASS to examine the issue of “large cash deposits in the bank account”. Notice/s were issued u/sec. 143(2) and 142(1) & 144 of the Act and remain to be complied. Based on the information contained in the tax return and the information available with the Ld.AO, the additions amounting to Rs. 84,61,789/- were made by the Ld.AO and income was assessed at Rs. 1,00,58,059/-. 5. The assessee preferred an appeal before the Ld. CIT(A), but failed to attend the notices of hearing issued by the Ld. CIT(A). We further observe from para 5 of the impugned order that the Ld.CIT(A) has mentioned the e-mail ID on which various notices were sent and in the remark column mentions “no response received”. Thereafter, Ld. CIT(A) without dealing with the matter on merits, dismissed the appeal for want of prosecution placing reliance on certain judicial precedents. We observe that the Hon'ble Bombay High Court in the case of Pr.CIT (Central) Vs. Premkumar Arjundas Luthra (HUF) [2017] 297 CTR 614 (Bombay) has held that Ld. CIT(A)/NFAC is obliged to dispose of the appeal on merits even in ex-parte order. Taking guidance of the said judgment, and also considering the facts and circumstances of the case, we deem it appropriate to remit the issues back to the file of the Ld. CIT(A) for necessary adjudication on merits, for which a reasonable opportunity shall be provided to the assessee. We also direct the assessee to update the latest e-mail ID and contact 3 ITA.No.855/PUN./2025 (Popatial Tejraj Gandhi) details on the income tax e-portal and also provide the same to the Ld. CIT(A), so that notice of hearing can be received by the assessee and proper compliance can be made. Assessee is also directed to remain vigilant and not to take adjournments unless otherwise required for reasonable cause and furnish all the details in support of grounds of appeal based on which the Ld. CIT(A) shall decide the appeal in accordance with law by way of passing speaking order. 6. In the result, appeal of the assessee is allowed for statistical purposes. Order pronounced in the open Court on 21.05.2025. Sd/- Sd/- [VINAY BHAMORE] [MANISH BORAD] JUDICIAL MEMBER ACCOUNTANT MEMBER Pune, Dated 21st May, 2025 vr/- Copy to 1. The appellant 2. The respondent 3. The CIT(A), Pune concerned. 4. D.R. ITAT, “B” Bench, Pune. 5. Guard File. By Order //True Copy // Sr. Private Secretary, ITAT, Pune Benches, Pune. "