SIDDHIVINAYAK ASSOCIATES,PUNE V. INCOME TAX OFFICER, WARD-6(1), PUNE, PUNE

ITA 1860/PUN/2024

AI Insights

The case involves Siddhivinayak Associates appealing against an ex parte order from the National Faceless Appeal Centre, which was based on an assessment order that added Rs.52,63,220 as unexplained expenditure under section 69C of the Income-tax Act, 1961. The assessee failed to comply with multiple hearing notices, leading to the ex parte decision. The Tribunal, considering the circumstances and the submissions made, decided to remand the case back to the CIT(A) for a fresh examination on merits, highlighting the principles of natural justice and the right to a fair hearing.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 314357 (ITAT-PUNE)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-05-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2018-2019
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: GANESH B BUDRUK
• Assessee Lawyers: PRAMOD SHINGTE
• Keywords: Reasonable cause; Unexplained expenditure; Principle of natural justice
• Section: 69C

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.1860/PUN/2024 Assessment Year : 2018-19 Siddhivinayak Associates, Ashish Plaza, S.No.10.2, Nanded, Sinhagad Road, Pune 411 041, Maharashtra PAN : ACAFS9860N Vs. ITO, Ward-6(1), Pune Appellant Respondent आदेश / ORDER PER DR. MANISH BORAD, ACCOUNTANT MEMBER : The captioned appeal at the instance of assessee pertaining to A.Y. 2018-19 is directed against the order dated 13.06.2024 passed by National Faceless Appeal Centre, Delhi u/s.250 of the Income-tax Act, 1961 (in short ‘the Act’) arising out of the Assessment order dated 19.02.2021 passed u/s.143(3) r.w.s.143(3A) & 143(3B) of the Act. 2. At the outset, Ld. Counsel for the assessee referring to Ground No.1 stated that the impugned order is exparte and in the interest of natural justice assessee should be provided one more opportunity of hearing before ld.CIT(A) by remitting the issues raised on merits. Ld. Departmental Representative was fair enough in not opposing this request. Appellant by : Shri Pramod Shingte Revenue by : Shri Ganesh B Budruk Date of hearing : 29.04.2025 Date of pronouncement : 06.05.2025 ITA No.1860/PUN/2024 Siddhivinayak Associates 2 3. We have heard the rival contentions and perused the record placed before us. We observe that the impugned order is exparte as the assessee failed to make compliance on the four notices of hearing namely 06.10.2023, 31.10.2023, 06.11.2023 and 03.06.2024. We observe that the assessee has made detailed submissions before ld. AO however ld. AO made addition of Rs.52,63,220/- invoking the provisions of section 69C of the Act for unexplained expenditure. We also notice that non- appearance was not intentional and the assessee would not have gained from not complying with the notices of hearing. In the light of submissions made by ld. Counsel for the assessee and in the larger interest of justice, we deem it appropriate to restore the issues raised on merits to the file of ld.CIT(A) for denovo adjudication. Ld.CIT(A) shall provide reasonable opportunity of hearing. Assessee is directed to provide latest email id and contact detail to the department for receiving the notices from ITBA portal. Assessee is also directed to remain vigilant and not to take unnecessary adjournment unless otherwise required for reasonable cause. Effective grounds of appeal raised on merits are allowed for statistical purposes. 4. In the result, appeal of the assessee is allowed for statistical purposes. Order pronounced on this 06th day of May, 2025. Sd/- Sd/- (VINAY BHAMORE) (MANISH BORAD) JUDICIAL MEMBER ACCOUNTANT MEMBER पुणे / Pune; \u0001दनांक / Dated : 06th May, 2025. Satish ITA No.1860/PUN/2024 Siddhivinayak Associates 3 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\u0004 फ़ाइल / Guard File. आदेशानुसार / BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण, पुणे / ITAT, Pune. "