SWAPNIL BALASAHEB SHETE ,SHIRALA V. NFAC , DELHI

ITA 1701/PUN/2025

AI Insights

The case involves an appeal by Swapnil Balasaheb Shete against the order passed by the National Faceless Appeal Centre (NFAC), Delhi, which was based on a reassessment order. The reassessment was initiated due to non-filing of the income tax return by the assessee for the assessment year 2018-19, despite large volume transactions reported. The ITAT noted that the assessee was not properly notified of the hearings and decisions due to reliance on a tax consultant, leading to ex-parte proceedings. The ITAT, citing principles of natural justice and previous Supreme Court judgments, condoned a significant delay in filing the appeal and decided to provide another opportunity for the assessee to present his case before the CIT(A).

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 778768 (ITAT-PUNE)
• Duration Of Justice: 2 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-10-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2018-2019
• Appeal Filed On: 21-07-2025
• Other Referred Cases: Collector, Land Acquisition vs. Master Katiji and Others, Inder Singh Vs State of Madhya Pradesh, CIT v. B.N. Bhattarcharjee & Another
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: BHARAT ANDHALE
• Keywords: Condonation of delay; Reasonable cause
• Section: 147; 148; 144; 142(1)

Judgement Text

" आयकर अपीलीय अधिकरण \"बी\" न्यायपीठ पुणे में । IN THE INCOME TAX APPELLATE TRIBUNAL \"B\" BENCH, PUNE BEFORE Dr. MANISH BORAD, ACCOUNTANT MEMBER AND SHRI VINAY BHAMORE, JUDICIAL MEMBER आयकर अपील सं. / ITA No.1701/PUN/2025 धििाारण वर्ा / Assessment Year: 2018-2019 Swapnil Balasaheb Shete, Samarth Agencies, Main Road, 32, Shirala- 415408 Maharashtra PAN-CPBPS0193C Vs NFAC, Delhi Appellant Respondent Assessee by : None Revenue by : Shri Bharat Andhale- Addl. CIT Date of hearing : 07.10.2025 Date of pronouncement : 14.10.2025 आदेश/ORDER PER DR. MANISH BORAD, ACCOUNTANT MEMBER : This appeal at the instance of the assessee is directed against the order dated 12.07.2024 passed by NFAC, Delhi u/s. 250 of the Income-tax Act, 1961 which is arising out of assessment order passed u/s 147 r.w.s. 144 dated 26.02.2024. 2. Registry has informed that there is a delay of 294 days in filing of the instant appeal. Application for condonation of delay alongwith affidavit is placed on record. After considering the contents of the affidavit and hearing Ld. Departmental Representative (DR), we find that the delay is not intentional and assessee was prevented for sufficient cause which mainly Printed from counselvise.com 2 ITA No.1701/PUN/2025 included non communication of notice of hearing as well as passing of impugned order to the assessee by the Accountant and Tax consultant. We therefore in the larger interest of justice and also taking support from the judgement of Hon'ble Apex Court in the case of Collector, Land Acquisition vs. Master Katiji and Others(1987) 167 ITR 471(SC) (Supreme Court) and in the case of Inder Singh Vs State of Madhya Pradesh judgement dated 21.03.2025 (2025) INSC 382) hereby condone the delay of 294 days and admit the appeal for adjudication. 3. When the case called for, none appeared on behalf of the assessee. However with the assistance of Ld. DR and perusal of records, we find that the assessee failed to appear before Ld. CIT(A) on various notices of hearing and Ld. CIT(A) has proceeded ex-parte against the assessee. Ld. DR supported the order of Ld. CIT(A). Since valid notice of hearing has been issued to the assessee on two occasions by this Tribunal i.e. on 08.09.2025 and 07.10.2025, we proceed ex-parte quo assessee. 4. We have heard Ld. DR and perused the record placed before us. The assessee is an individual and did not file the return of income for A.Y. 2018-19. Based on the information about certain large volume transactions entered by the assessee during the year, re-assessment proceedings were carried out after validly serving statutory notices u/s 148 followed by issue of notice u/s 142(1) of the Act. Assessee did not file the return in response to notice issued u/s 148 of the Act. Ld. Assessing Officer (AO) passed best judgement assessment order u/s 147 r.w.s 144 of the Act making additions at Rs. 2,06,23,340/- Printed from counselvise.com 3 ITA No.1701/PUN/2025 5. We further notice that the assessee preferred appeal before Ld. CIT(A) on 21.03.2024 but after seeking adjournment on the first notice of hearing dated 09.04.2024, assessee failed to respond to the next four notices of hearing. Accordingly Ld. CIT(A) proceeded ex-parte qua assessee referring to the judgement of the Hon’ble Apex Court in the case CIT v. B.N. Bhattarcharjee & Another (10 CTR 354) and concluded the appellate proceedings after dealing with the merits of the case. 6. Now the assessee has preferred appeal before this Tribunal and in ground No. 3 it has been stated that Ld. CIT(A) has not granted proper opportunity of hearing. On going through the statement of facts we notice that the assessee was solely dependent on the Tax Consultant and had to take advice from other Tax Consultants also. Due to this reason notice issued by Ld. CIT(A) remained unattended. Considering the facts and circumstances of the case and also in the larger interest of justice and being fair to both the parties, we deem it appropriate to provide one more opportunity to the assessee and restore all the issues raised in the instant appeal to the file of Ld. CIT(A) for afresh adjudication and to decide in accordance with law as contemplated u/s 250(6) of the Act. Needless to mention that sufficient opportunity of hearing shall be granted to the assessee. Assessee is also directed to remain vigilant and not to take adjournment unless otherwise required for reasonable cause. Grounds of appeal raised by the assessee are allowed for statistical purposes. Printed from counselvise.com 4 ITA No.1701/PUN/2025 7. In the result, appeal of the assessee is allowed for statistical purposes. Order pronounced on this 14th day of October, 2025. Sd/- Sd/- (VINAY BHAMORE) (MANISH BORAD) JUDICIAL MEMBER ACCOUNTANT MEMBER पुणे/ Pune; दििांक / Dated: 14th October, 2025. Neeta आिेश की प्रधिधलधप अग्रेधर्ि / Copy of the Order forwarded to: 1. अपीलार्थी / The Appellant. 2. प्रत्यर्थी / The Respondent. 3. The Pr. CIT concerned. 4. धवभागीय प्रधिधिधि, आयकर अपीलीय अधिकरण, \"बी\" बेंच, पुणे / DR, ITAT, \"B\" Bench, Pune. 5. गार्ा फाइल / Guard File. आिेशािुसार / BY ORDER, Senior Private Secretary आयकर अपीलीय अधिकरण, पुणे / ITAT, Pune Printed from counselvise.com "