RATILAL DAGADULAL MUTHA,PUNE V. INCOME TAX OFFICER, WARD-14(5), PUNE, PUNE

ITA 63/PUN/2025

AI Insights

The case involves Ratilal Dagadulal Mutha, who did not file a return of income for the assessment year 2014-15. The Income Tax Department reopened his case based on information that he had deposited Rs.3.40 crore in a bank account. The Assessing Officer (AO) issued statutory notices, which the assessee did not comply with, leading to the tax of Rs.1,70,25,600 being imposed as unexplained money under section 69A of the Income Tax Act. The assessee's appeal to the CIT(A) was dismissed for non-prosecution without discussing the merits. The Tribunal, referencing a Bombay High Court decision, restored the matter to the CIT(A) for a decision on merits, allowing the assessee to present evidence and arguments.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 126370 (ITAT-PUNE)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-04-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2014-2015
• 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: KUMAR MANISH SINHA
• Assessee Lawyers: PRAMOD SHINGTE
• Keywords: Set aside; Reasonable cause; Grounds of appeal; Dismissed; National Faceless Appeal; HRA; Sources of cash; Statistical purposes; Limine; Department; In Limine

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCHES “B”, PUNE BEFORE DR.MANISH BORAD, ACCOUNTANT MEMBER AND SHRI VINAY BHAMORE, JUDICIAL MEMBER आयकर अपील सं. / ITA No.63/PUN/2025 Assessment Year : 2014-15 Ratilal Dagadulal Mutha, S.No.W 181/6A, Gajanana Housing Society, Dound, Baramati, Pune 413 801 Maharashtra PaN : ARWPM4183H Vs. Income Tax Officer, Ward-14(5), Pune Appellant Respondent आदेश / ORDER PER DR. MANISH BORAD, ACCOUNTANT MEMBER : The captioned appeal at the instance of assessee pertaiing to A.Y. 2014-15 is directed against the order dated 08.11.2024 framed by National Faceless Appeal Centre, Delhi which inturn is arising out of Assessment order dated 22.05.2023 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.3.40 crore in the bank account maintained with Shri Laxmi Coop. Bank Ltd. the case was reopened by way of issuance of notice u/s.148 of the Act. Statutory notices u/s.142(1) of the Act were issued to Appellant by : Shri Pramod Shingte Revenue by : Shri Kumar Manish Sinha Date of hearing : 07.04.2025 Date of pronouncement : 23.04.2025 ITA No.63/PUN/2025 Ratilal Dagadulal Mutha 2 the assessee to which there was no compliance. Ld. AO concluded the proceedings by bringing to tax the cash credits of Rs.1,70,25,600/- as unexplained money u/s.69A of the Act. 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. We have heard both the sides and perused the record placed before us. During the course of hearing before us, ld. Counsel for the assessee submitted that assessee’s case could not be represented effectively before the authorities for the reasons beyond the control of assessee and prayed to grant one more opportunity to the assessee by remitting the issue on merits to the file of ld.CIT(A). Ld. Departmental Representative was fair enough in not opposing the request of the assessee. Hon’ble Bombay High Court in the case of PCIT (C) 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 an exparte order. In view thereof and without dwelling into merits of the issues and considering the submissions of the assessee, we deem it proper to restore the issue on merits to the file of ld.CIT(A) for necessary adjudication. 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 as contemplated u/s.250(6) of the Act. Needless to say, the assessee will be given reasonable opportunity of hearing. Assessee is directed to provide correct email id and ITA No.63/PUN/2025 Ratilal Dagadulal Mutha 3 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 by the assessee are allowed for statistical purposes. 5. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced on this 23rd day of April, 2025. Sd/- Sd/- (VINAY BHAMORE) (MANISH BORAD) JUDICIAL MEMBER ACCOUNTANT MEMBER पुणे / Pune; \u0001दनांक / Dated : 23rd 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, “B” ब\u0014च, पुणे / DR, ITAT, “B” Bench, Pune. 5. गाड\u0018 फ़ाइल / Guard File. आदेशानुसार / BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण, पुणे / ITAT, Pune. "