RUPSINGH THANSINGH PATIL,AURANGABAD V. ITO, WARD-2(5), AURANGABAD

ITA 2461/PUN/2024

AI Insights

This case involves an appeal by Rupsingh Thansingh Patil against the order of the NFAC, which had dismissed his appeal for non-prosecution without discussing the merits. The original assessment was made under sections 144 and 147 of the Income-tax Act, 1961, due to non-filing of income tax return by the assessee for the year 2011-12, despite a significant cash deposit of Rs.20,83,000 in his bank account. The Assessing Officer made an addition of Rs.10,23,000 as unexplained money under section 69A of the Act. The Tribunal found that the NFAC had not adjudicated the appeal on merits as required by law and thus remitted the case back for a thorough examination of the merits.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 24799 (ITAT-PUNE)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-01-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2011-2012
• Other Referred Cases: Pr.CIT(Central) Vs. Premkumar Arjundas Luthra (HUF)
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VINOD PAWAR
• Assessee Lawyers: AJINKYA VAISHAMPAYAN
• Keywords: Set aside; Reasonable cause
• Section: 147; 139(1); 69A

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCHES “SMC”, PUNE BEFORE DR.MANISH BORAD, ACCOUNTANT MEMBER आयकर अपील सं. / ITA No.2461/PUN/2024 Assessment Year : 2011-12 Rupsingh Thansingh Patil, Plot No.16, Sakarvihar, Sadguru Complex, Mayur Par Harsool, Aurangabad 431 003 Maharashtra PAN : AZAPP9651K Vs The ITO, Ward-2(5), Aurangabad Appellant Respondent आदेश / ORDER PER DR. MANISH BORAD, ACCOUNTANT MEMBER : This appeal by the assessee pertaining to Assessment Year 2011-12 is directed against the order dated 24.09.2024 passed by National Faceless Appeal Centre, Delhi u/s.250 of the Income-tax Act, 1961 (hereinafter also called ‘the Act’) which inturn is arising out of the Assessment Order passed u/s.144 r.w.s. 147 dated 16.12.2018. Assessee by : Shri Ajinkya Vaishampayan Revenue by : Shri Vinod Pawar Date of hearing : 24.12.2024 Date of pronouncement : 07.01.2025 ITA No.2461/PUN/2024 Rupssingh Thansingh Patil 2 2. Facts in brief are that the assessee is an individual who did not file any return of income for the year under consideration under the provisions of section 139(1) of the Act. Based on the information available with the department that the assessee made cash deposit of Rs.20,83,000/- in his savings bank maintained with Deogiri Nagari Sahakari Bank Ltd. for the period from 01.04.2010 to 31.03.2011, the case was reopened by issuance of notice u/s.148 of the Act. In response to notice u/s.142(1) of the Act issued on 18.09.2018, the assessee submitted the copy of ITR filed on 11.09.2018. Thereafter, notice u/s.142(1) along with questionnaire was issued on 16.11.2018 to which there was no compliance by the assessee. In the event, the Assessing Officer completed the assessment us/.144 r.w.s.147 of the Act making addition of Rs.10,23,000/- as unexplained money invoking the provisions of section 69A of the Act. 3. Aggrieved assessee preferred appeal before the ld.NFAC who vide impugned order dismissed the appeal for non- prosecution, without discussing anything on merits of the issue. 4. Now the assessee is in appeal before the Tribunal. ITA No.2461/PUN/2024 Rupssingh Thansingh Patil 3 5. I have heard both the sides and perused the record placed before me. It is conspicuous that the assessee did not appear before the Assessing Officer and the First Appellate Authority. Further, it is also a fact that the ld.CIT(A)/NFAC has dismissed the assessee’s appeal in limine without discussing the issue on merits as contemplated u/s.250(6) of the Act, which provides that for adjudicating the appeal, the ld.CIT(A)/NFAC should dispose of the same in writing and shall state the points for determination, the decision thereon and the reason for that decision. The settled position of law mandates the ld.NFAC to dispose of the appeal by adjudicating the issues raised in appeal on merits. In this regard, reference is being made to a decision of the Hon’ble Bombay High Court in the case of Pr.CIT(Central) Vs. Premkumar Arjundas Luthra (HUF) Bombay)/[2017] 297 CTR 614 (Bombay) wherein it was held that NFAC is obliged to dispose of the appeal on merits. 6. During the course of present hearing, the assessee has filed a paper book and pleaded that he owns agricultural land and runs a business under the name and style ‘M/s. Jay Rana Pan Center’. He also filed Cash summary for the period 01.04.2010 to 31.03.2011. It is also claimed that assessee’s wife owned some agricultural land and she received sale consideration from selling part of the said land which was given to the assessee. All ITA No.2461/PUN/2024 Rupssingh Thansingh Patil 4 these facts were brought before the Tribunal for the first time. In the light of these facts, I am of the opinion that assessee deserves one more opportunity to meet the ends of justice. In view thereof, without dwelling into merits of the issue, the issue on merits is being remitted to the file of Jurisdictional Assessing Officer for denovo adjudication. The assessee is also directed to remain vigilant and not to take adjournment unless otherwise required for reasonable cause, failing which the ld. Assessing Officer shall be free to proceed in accordance with law. Finding of the ld.NFAC is set aside and Grounds of appeal raised by the assessee are allowed for statistical purposes. 7. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced on this 07th day of January, 2025. Sd/- (MANISH BORAD) ACCOUNTANT MEMBER पुणे / Pune; \u0001दनांक / Dated : 07th January, 2025. Satish ITA No.2461/PUN/2024 Rupssingh Thansingh Patil 5 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\u0004 फ़ाइल / Guard File. आदेशानुसार / BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण, पुणे / ITAT, Pune. "