SAMEER MANOHAR FULARI,MAPUSA V. ASSESSING OFFICER, NFAC, DELHI

ITA 201/PAN/2023

AI Insights

The case involves Sameer Manohar Fulari, the appellant, who appealed against the order of the National Faceless Assessment Centre (NFAC), Delhi, concerning the assessment year 2018-19. The Assessing Officer (AO) had made additions to the assessee's income based on unsubstantiated cash deposits in his bank account, which the assessee failed to explain despite multiple opportunities. The CIT(A) dismissed the appeal due to non-compliance with tax payment requirements under section 249(4)(b) of the Income Tax Act. The Tribunal, considering the principles of natural justice, decided to provide the assessee another opportunity to comply and present his case, thus setting aside the CIT(A)'s order and remitting the issues back for re-assessment.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 475573 (ITAT-PANAJI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-01-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: WT(D)
• Assessment Year: 2018-2019
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NARENDRA REDDY.
• Keywords: Set aside; Principle of natural justice; Reason to believe
• Section: 147; 144; 142(1); 250; 44AD

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. 201/PAN/2023 (A.Y. 2018-19 ) Sameer Manohar Fulari, Near Bank Of India,Keni Waddo,Mapusa Bardez, Noth Goa-403507 Goa. Vs . National Faceless Assessment Centre,NFAC,Delhi. . PAN .No. AAOPF3440P (अपीलाथȸ/Appellant) (Ĥ×यथȸ/Respondent) Assessee by None(letter 20-01-25) Revenue by Mr.Narendra Reddy.Sr.DR सुनवाई कȧ तारȣख/Date of Hearing 27.01.2025 घोषणा कȧ तारȣख/Date of Pronouncement 28.01.2025 ORDER PER PAVAN KUMAR GADALE, JM: The appeal is filed by the assesse against the order of National Faceless Appeal Centre (NFAC) Delhi / CIT(A) passed u/sec 144r.w.s 147 and u/sec 250 of the Act. 2. The brief facts of the case are that, the assessee is a individual and is engaged in the business. The Assessing Officer (AO) based on the information from ITBA data, found that the assesse has made cash deposits in the bank 2 ITA. No.201/PAN/2023 Sameer Manohar Fulari... account and the assesse has not filed the return of income and the Assessing Officer (A.O) has reason to believe that income has escaped and issued the notice u/sec148 of the Act and the assessee has submitted income computation declaring the profit @8% of Gross receipts of Rs.1,38,35,000/- u/sec 44AD of the Act and it was not accepted by the A.O. Further the notice u/sec 142(1) of the Act along with questionnaire was issued on various dates and there was no compliance. Whereas the A.O found that the assesse has made the cash deposits aggregating to Rs.1,07,34,000/- in the bank account in the F.Y.2017-18 and explanations were called to substantiate the deposits. Since, no explanations/details were filed, the AO considering the information available on record and has issued notice u/sec133(6) on the bank and called for the Bank statement of the assessee. The A.O has invoked the provisions of Sec.144 of the Act and made addition of cash deposits of Rs.1,07,34,030/- u/sec69A of the Act and the interest income of Rs.35,753/- and finally assessed the total income of Rs.1,07,69,783/- and passed the order u/sec 144 r.w.s147 of the Act dated 10.03.2023. 3. Aggrieved by the order, the assessee has filed an appeal before the CIT(A), whereas the CIT(A) has considered the grounds of appeal, statement of facts, findings of the AO and Form no 35 and find that the assessee has not paid the taxes and the provisions of section 249(4)(b) of the Act 3 ITA. No.201/PAN/2023 Sameer Manohar Fulari... are attracted and has issued letter and since there was no compliance by the assesse, the CIT(A) has dismissed the appeal as infructous. Aggrieved by the order of the CIT(A), the assessee 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 to the letter nor appearance in spite of providing adequate opportunity of hearing. Therefore, the CIT(A) was of the opinion that the assesse is not interested and find that as per Form no 35, the assessee has not paid the taxes/advance tax and the provisions of section 249(4)(b) of the Act are attracted and the CIT(A) has issued letter dated 19.09.2023 referred at Page 3 Para4.4 of the order and there was no response and hence the CIT(A) has dismissed the appeal as infructous. Whereas the assesse has raised grounds of appeal challenging the additions by the A.O and there could be various reasons for non appearance/ compliance which cannot be overruled. Further, in the case, were the return of income is not filed by the assessee and the case falling under section 249(4)(b) of the Act, there is a provision, provided that, the assessee can make an application to appellate authority explaining the good and sufficient reasons for claiming the exemption. Therefore, considering the facts and principles 4 ITA. No.201/PAN/2023 Sameer Manohar Fulari... of natural justice, we shall provide with one more opportunity to the assessee. Accordingly, we set aside the order of the CIT(A) and remit the entire disputed issues to the file of the CIT(A) as discussed above. And, we allow the grounds of appeal of the assesse for statistical purpose. 5. In the result, the appeal filed by assessee is allowed for statistical purposes. Order pronounced in the open court on 28.01.2025. Sd/- Sd/- (GD PADMAHSHALI) (PAVAN KUMAR GADALE) ACCOUNTANT MEMBER JUDICIAL MEMBER Panaji Dated: 28/01/2025 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.201/PAN/2023 Sameer Manohar Fulari... 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 "