RAVIKANT SIDDHANNA GANDEWADI,SANGLI V. NFAC, DELHI, DELHI

ITA 107/PUN/2025

AI Insights

The case involves an appeal by Ravikant Siddhanna Gandewadi against the order of the CIT(A)/NFAC, which confirmed an addition of Rs.4,73,39,080 to the assessee's income for the assessment year 2013-14. The addition was based on cash deposits in the assessee's bank account, which were alleged to be the sale proceeds of a petrol pump run by the assessee's uncle. The assessee contended that these deposits were already disclosed in the audit reports and tax returns of his uncle, who owned the petrol pump. The CIT(A) had dismissed the initial appeal due to the absence of the assessee and non-response to multiple notices. The Tribunal, after considering the circumstances and the submissions, decided to remand the case back to the CIT(A) for a re-adjudication, emphasizing the need for adherence to the principles of natural justice.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 396600 (ITAT-PUNE)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-05-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2013-2014
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: A.D.KULKARNI
• Keywords: Principle of natural justice; TDS; Competent authority
• Section: 147; 148; 142(1)

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH “B”, PUNE BEFORE SHRI MANISH BORAD, ACCOUNTANT MEMBER AND SHRI VINAY BHAMORE, JUDICIAL MEMBER आयकर अपील सं. / ITA No.107/PUN/2025 िनधाᭅरण वषᭅ / Assessment Year : 2013-14 Ravikant Siddhanna Gandewadi, A/p. Saglare, Tal. Miraj, Dist.- Sangli. PAN : AYKPG4789Q Vs. Income Tax Department, National Faceless Assessment Centre, Delhi. Appellant Respondent आदेश / ORDER PER VINAY BHAMORE, JM: This appeal filed by the assessee is directed against the order dated 27.09.2024 passed by Ld. CIT(A)/NFAC for the assessment year 2013-14. 2. The appellant has raised the following grounds of appeal :- “1. On the facts and in the circumstances of the case and in law the lower authorities have erred in dismissing the appeal ex parte without giving proper opportunity of hearing and the act being in violation of principle of natural justice, it is prayed that appeal may kindly be restored back to lower authorities (A.O.) for re adjudication/reconsideration. 2. Learned CIT (A) has erred in fact and in law and in the circumstances of the case confirming addition made by A.O. of Rs.4,73,39,080/- despite the fact that the cash deposit is sale proceeds of petrol pump run by uncle of the appellant and Assessee by : None Revenue by : Shri A. D. Kulkarni Date of hearing : 03.04.2025 Date of pronouncement : 26.05.2025 ITA No.107/PUN/2025 2 account of the appellant is used by him for his business and all the cash deposit out of sale proceeds of the petrol pump are properly recorded in the books of account of uncle of the appellant. 3. Appellant craves to leave, add / alter or amend any other grounds of appeal.” 3. Facts of the case, in brief, are that the assessee is an individual and has not furnished his return of income for the period under consideration. On the basis of information available with the Department that the assessee has deposited an amount of Rs.4,73,39,080/- in his bank account and bank has also deducted TDS on interest income, however the assessee has not furnished his return of income, accordingly the proceedings u/s 147 of the IT Act were initiated after obtaining prior approval of the competent authority and notices u/s 148 and 142(1) were issued and served upon the assessee respectively. Not being satisfied with the reply of the assessee, the Assessing Officer completed the assessment u/s 147 r.w.s. 144B of the IT Act determining total income at Rs.4,76,38,450/- as against no return filed by the assessee. The above assessed income includes addition on account of cash deposit of Rs.4,73,39,080/- in bank account and interest income of Rs.2,99,370/-. 4. Since the assessee remained absent, Ld. CIT(A)/NFAC dismissed the appeal filed by the assessee. It is this order against which the assessee is in appeal before the Tribunal. ITA No.107/PUN/2025 3 5. When the appeal was called for hearing neither anybody attended nor any application for adjournment was filed, we therefore proceed to decide the appeal after hearing Ld. DR and on the basis of material available on record. 6. We have heard Ld. DR and perused the material available on record. We find that in first ground of appeal the assessee has challenged the ex-parte order passed by Ld. CIT(A)/NFAC. In this regard, we find that Ld. CIT(A)/NFAC has issued number of notices of hearing to the assessee but the assessee remained absent & did not furnished any reply. However, from the perusal of material available on record, we find that it is the contention of the assessee that the turnover appearing in his bank account pertains to petrol pump receipts and the petrol pump business was carried on by his relative who has already disclosed the impugned turnover in his audit reports and also furnished return of income wherein the income arising from this turnover has already been shown. Considering the totality of the facts of the case and in the interest of justice and without going into merits of the case, we deem it appropriate to set-aside the ex-parte order passed by Ld. CIT(A)/NFAC and remand the matter back to his file with a direction to decide the appeal afresh as per fact and law after providing reasonable opportunity of hearing to the assessee. The ITA No.107/PUN/2025 4 assessee is also hereby directed to respond to the notices issued by Ld. CIT(A)/NFAC in this regard and to produce documents/ explanations and evidences to substantiate grounds of appeal without taking any adjournment under any pretext, otherwise Ld. CIT(A)/NFAC shall be at liberty to pass appropriate orders as per law. The effective ground of appeal raised by the assessee is partly allowed. 7. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on this 26th day of May, 2025. Sd/- Sd/- (MANISH BORAD) (VINAY BHAMORE) ACCOUNTANT MEMBER JUDICIAL MEMBER पुणे / Pune; ᳰदनांक / Dated : 26th May, 2025. 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. "