SAGAR JOLAPURE,MARGAO V. INCOME TAX OFFICER, WARD 1, MARGAO

ITA 65/PAN/2024

AI Insights

The case involves Sagar Bahubali Jolapure, the appellant, who appealed against the order of the CIT(A) Delhi, which sustained the additions made by the Assessing Officer (AO) under sections 143(3) r.w.s 147 and 250 of the Income Tax Act. The AO had made additions to the assessee's income based on undisclosed interest income from a cooperative bank and credits of deposits with banks, leading to a reassessment of income for the assessment year 2017-18. The CIT(A) dismissed the appeal ex-parte due to non-compliance by the assessee in attending the hearings. The Tribunal, after hearing the submissions and considering the material on record, decided to remit the case back to the CIT(A) for a fresh examination, highlighting the need to adhere to the principles of natural justice.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 47262 (ITAT-PANAJI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-04-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: WT(D)
• Assessment Year: 2017-2018
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NARENDAR REDDY..
• Keywords: Set aside; Revised return; Principle of natural justice; Reason to believe
• Section: 250; 133(6)

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL PANAJI BENCH PANAJI BEFORE SHRI PAVAN KUMAR GADALE, JUDICIAL MEMBER & SHRI G D PADMAHSHALI ACCOUNTANT MEMBER I T A. Nos.65/PAN/2024 (A.Y. 2017-18) Sagar Bahubali Jolapure, Saval Virgincar Classic, Near Maruti mandir,Davorlim, Salcete-403601, Goa. Vs . I T O,-Ward-1, Blessing Pioneer Complex, Margao-403601, Goa. PAN/GIR No. AHNPJ9761D (अपीलाथȸ/Appellant) (Ĥ×यथȸ/Respondent) Assessee by None(Letter dated 7-4-2025) Revenue by Shri.Narendar Reddy..Sr.DR सुनवाई कȧ तारȣख/Date of Hearing 08.04.2025 घोषणा कȧ तारȣख/Date of Pronouncement 09.04.2025 ORDER PER PAVAN KUMAR GADALE ,JM: The assesse has filed the appeal against the order of the NFAC/CIT(A) Delhi passed u/sec143(3) r.w.s147 and u/sec 250 of the Act. The assesse has raised the grounds of appeal challenging the ex-parte order of the CIT(A) sustaining the additions made by the Assessing Officer. 2. The brief facts of the case are that, the assesse has filed the return of income for the A.Y.2017-18 disclosing a total income of Rs.3,60,200/- on 17.07.2017, which is invalid and again the revised return of income was filed on the 2 ITA. No.65/PAN/2024 Sagar BahubaliJolapure. same day disclosing a total income of Rs.3,01,940/-.The Assessing Officer (AO) based on the information found that the assessee has not disclosed the interest income from cooperative bank and credits of deposits with the banks. The assessing officer has reason to believe that the income has escaped the assessment and has issued notice u/sec148 of the Act and also the notice u/sec142(1) of the Act was issued to furnish the details and sources of investments and there was compliance. Whereas the A.O found credits in the saving bank accounts maintained with (i) HDFC Bank Ltd (ii) ICICI Bank and (iii)VPK Urban cooperative bank and explanations were called to substantiate the credits and the interest earned in the F.Y.2016-17. Since there was partial compliance, the Assesseing officer has issued notice U/sec 133(6) of the Act on the banks and obtain the statements. Whereas the A.O was not satisfied with the explanations and dealt on the provisions and made addition u/sec69A of the Act of Rs.44,20,440/- and Rs.18,58,743/- interest income u/sec56 of the Act and finally assessed the total income of Rs.66,39,383/- and passed the order u/sec143(3)r.w.s147 of the Act dated 27.12.2019. 3. Aggrieved by the order, the assesse has filed an appeal before the CIT(A), whereas the CIT(A) has considered the grounds of appeal, statement of facts and findings of the AO and has issued notices of hearing and since there was no compliance by the assessee to notices. Therefore the 3 ITA. No.65/PAN/2024 Sagar BahubaliJolapure. CIT(A) considering the information on record has confirmed the action of the A.O and dismissed the appeal. Aggrieved by the order of the CIT(A), the assesse has filed an appeal before the Hon'ble Tribunal. 4. We heard the Ld.DR submissions and perused the material on record and none appeared on behalf of the assesse. Prima-facie the CIT(A) has passed the order considering the fact that there is no compliance in spite of providing adequate opportunity of hearing and the notices were issued. Therefore, the CIT(A) was of the opinion that the assessee is not interested in prosecuting the appeal and dismissed the appeal ex-parte confirming the action of the assessing officer. The Ld. CIT(A) has issued the notices of hearing referred at Page 3 Para 5 of the CIT(A) order but there was no response and thus the Ld.CIT(A) came to a conclusion that the assessee is not interested and decided the appeal based on the information available on record. Whereas the assessee has raised grounds of appeal challenging the additions by the A.O and there could be various reasons for non appearance which cannot be overruled. Therefore, considering the principles of natural justice, we shall provide with one more opportunity of hearing to the assessee to substantiate the case with evidences and information. Accordingly, set aside the order of the CIT(A) and remit the entire disputed issues to the file of the CIT(A) to adjudicate afresh on merits and the assessee should be provided adequate opportunity of 4 ITA. No.65/PAN/2024 Sagar BahubaliJolapure. hearing and shall cooperate in submitting the information for early disposal of appeal. And, we allow the grounds of appeal of the assessee for statistical purposes. 5. In the result, the appeal filed by assesse is allowed for statistical purposes. Order pronounced in the open court on 09.04.2025. Sd/- Sd/- (GD PADMAHSHALI) (PAVAN KUMAR GADALE) ACCOUNTANT MEMBER JUDICIAL MEMBER Panaji Dated: 09/04/2025 Copy of the Order forwarded to: 1. The Appellant, 2. The Respondent 3. The CIT(A)- 4. CIT 5. DR, ITAT 6. Guard file. //True Copy// BY ORDER, (Asstt. Registrar)ITAT, Panaji 5 ITA. No.65/PAN/2024 Sagar BahubaliJolapure. Date Initial 1. Draft dictated on PS 2. Draft placed before author PS 3. Draft proposed & placed before the second member PS 4. Draft discussed/approved by Second Member. PS 5. Approved Draft comes to the Sr.PS/PS PS 6. Kept for pronouncement on 7. File sent to the Bench Clerk 8. Date on which file goes to the AR 9. Date on which file goes to the Head Clerk. 10. Date of dispatch of Order. 11. Dictation Pad is enclosed "