RAIS NASIR SHEKH,AURANGABAD V. ITO, WARD-1(1), AURANGABAD, AURANGABAD

ITA 257/PUN/2025

AI Insights

The case involves Rais Nasir Shekh, who did not file his income tax return for the assessment year 2015-16. The Income Tax Officer reopened the case based on substantial cash deposits in the assessee's bank accounts, leading to an assessment order that included unexplained money and income from other sources. The assessee's appeal to the CIT(A) was dismissed for non-prosecution. The Tribunal, considering the technological challenges faced by some assessees in the new faceless assessment and appeal procedures, decided to set aside the CIT(A)'s findings and remand the case for a decision on merits.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 126813 (ITAT-PUNE)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-04-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2015-2016
• Other Referred Cases: PCIT (C) vs. Premkumar Arjundas Luthra (HUF)
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AVIYOGI AMBADKAR
• Keywords: Set aside; Reasonable cause; Grounds of appeal; Dismissed; National Faceless Appeal; Judgment; HRA; Sources of cash; Statistical purposes; Limine; Department; In Limine; E-mail
• Section: 148

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCHES “SMC”, PUNE BEFORE DR.MANISH BORAD, ACCOUNTANT MEMBER AND SHRI VINAY BHAMORE, JUDICIAL MEMBER आयकर अपील सं. / ITA No.257/PUN/2025 Assessment Year : 2015-16 Rais Nasir Shekh, At Rahimpur Post Jikthan, Taluk Gangapur Dist. Aurangabad 431 133 Maharastra PAN : DSRPS0411P Vs. Income Tax Officer, Ward-1(1), Aurangabad Appellant Respondent आदेश / ORDER PER DR. MANISH BORAD, ACCOUNTANT MEMBER : The captioned appeal at the instance of assessee pertaining to A.Y. 2015-16 is directed against the order dated 28.11.2024 framed by National Faceless Appeal Centre, Delhi arising out of Assessment order dated 28.02.2024 passed u/s.147 r.w.s.144 r.w.s.144B of the Income Tax Act, 1961 (in short ‘the Act’). 2. Brief facts of the case are that the assessee is an individual and has not filed the return of income for the year under consideration u/s.139(1) of the Act. Based on the information available that the assessee had deposited cash of Rs.25.50 lakh and 25.00 lakh in the bank account maintained with Maharashtra Gramin Bank and Marathwada Appellant by : None Respondent by : Shri Aviyogi Ambadkar Date of hearing : 11.03.2025 Date of pronouncement : 25.04.2025 ITA No.257/PUN/2025 Rais Nasir Shekh 2 Gramin Bank, the case was reopened by way of issuance of notice u/s.148 of the Act. Statutory notices were issued to the assessee to which there was partial compliance. Ld. AO concluded the proceedings u/s.147 r.w.s.144 making additions of Rs.35.50 lakh as unexplained money u/s.69A of the Act and Rs.11,425/- as Income from other sources, assessed income at Rs.35.61 lakh. 3. Aggrieved assessee preferred and appeal before the ld.CIT(A) and the ld.CIT(A) dismissed the appeal in limine for non-prosecution, without discussing anything on merits of the issue. Now the assessee is in appeal before this Tribunal. 4. When the appeal was called for, none appeared on behalf of the assessee despite due service of notice of hearing. We therefore proceed to dispose of the appeal exparte with the able assistance from ld. Departmental Representative. 5. We have heard the ld. Departmental Representative and perused the record placed before us. Having gone through the impugned order, we note that failure on the part of assessee to file return in pursuance of notice issued u/s. 148 of the Act and failure to effectively explain the nature & source of proof of credit/cash deposit made into bank accounts held with Maharashtra Gramin Bank and Marathwada Gramin Bank was sheerly attributed to non- receipt of notices on the registered email to which assessee had access, resulted into exparte addition/assessment. When the matter travelled in appeal before the First Appellate Authority, ld.CIT(A) dismissed the appeal for non- prosecution. Considering the contentions made by assessee we notice that the assessee has not taken note of the e-mail ITA No.257/PUN/2025 Rais Nasir Shekh 3 received from NFAC. Since new procedures of faceless assessments and faceless appeals have been introduced some assessees are not well versed with the new technological advancements. We would like to quote the judgment of Hon’ble Bombay High Court in the case of PCIT (C) vs. Premkumar Arjundas Luthra (HUF) (2017) 297 CTR 614 (Bombay) wherein it was held that ld.CIT(A)/NFAC is obliged to dispose of the appeal on merits even in an exparte order. 6. We therefore taking liberal approach and also in the larger interest of justice deem fit to restore the issues raised on merits to the file of Ld. CIT(A) for necessary adjudication and for deciding the issue in accordance with law and pass a speaking order as contemplated u/s.250(6) of the Act. Assessee is at liberty to adduce evidences in support of the sources of cash deposit. Ld.CIT(A) may call for a remand report from Ld. Jurisdictional Assessing Officer and after obtaining the comments of the assessee to such remand report, pass a speaking order. Needless to say, the assessee will be given reasonable opportunity of hearing. Assessee is directed to provide correct email id and contact detail to the department for receiving the notices from ITBA portal. Assessee is further directed to remain vigilant and not to take adjournment unless otherwise required for reasonable cause, failing which the ld.CIT(A) shall be free to proceed in accordance with law. Findings of ld.CIT(A) is set aside and effective grounds of appeal raised on merits are allowed for statistical purposes. ITA No.257/PUN/2025 Rais Nasir Shekh 4 7. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced on this 25th day of April, 2025. Sd/- Sd/- (VINAY BHAMORE) (MANISH BORAD) JUDICIAL MEMBER ACCOUNTANT MEMBER पुणे / Pune; \u0001दनांक / Dated : 25th April, 2025. Satish आदेश क\u0002 \u0003ितिलिप अ ेिषत / Copy of the Order forwarded to : 1. अपीलाथ / The Appellant. 2. \u000eयथ / The Respondent. 3. The Pr. CIT concerned. 4. िवभागीय ितिनिध, आयकर अपीलीय अिधकरण, “SMC” ब\u0014च, पुणे / DR, ITAT, “SMC” Bench, Pune. 5. गाड\u0018 फ़ाइल / Guard File. आदेशानुसार / BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण, पुणे / ITAT, Pune. "