UDAY KARCHI,BELAGAVI V. INCOME TAX OFFICER WARD 4 BELAGAVI, BELAGAVI

ITA 54/PAN/2025

AI Insights

The case involves Uday Karchi, 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 substantial additions to the assessee's income based on unexplained cash deposits and unaccounted agricultural income. The CIT(A) dismissed the appeal ex-parte due to non-compliance by the assessee in attending the hearings. The Tribunal, considering the principles of natural justice, decided to provide another opportunity to the assessee and remitted the case back to the CIT(A) for a fresh decision on merits.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 312435 (ITAT-PANAJI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-04-2025
• 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: SURESH KUMAR C.B.
• Keywords: Set aside; Principle of natural justice

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.54/PAN/2025 (A.Y. 2017-18) Uday Karchi, Post.Ainapur,Karchi Gully Taluka,Athani, Belgaum-591303, Karnataka. Vs . I.T.O Ward-4, Civil Hospital Road, Belgaum-590001. Karnataka. PAN/GIR No. BEWPK2983K (अपीलाथȸ/Appellant) (Ĥ×यथȸ/Respondent) Assessee by None. Revenue by Shri.Sureshkumar C.B.Sr.DR सुनवाई कȧ तारȣख/Date of Hearing 30.04.2025 घोषणा कȧ तारȣख/Date of Pronouncement 30.04.2025 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 2 ITA. No.54/PAN/2025 Uday Karchi. income of Rs.1,60,940/- on 30.03.2018. The case was selected for scrutiny. The Assessing Officer (AO) based on the information found that the assesse has made cash deposits in the banks and has substantial agricultural income and the notice u/sec142(1) of the Act was issued to furnish the details and sources of investments/ deposits and there was compliance. Whereas the A.O found the cash deposits credits in the bank accounts maintained with (i) Union Bank of India (ii) Federal Bank and (iii)Syndicate Bank and explanations were called to substantiate the credits in the F.Y.2016-17. And the assessee has filed the details on various dates on the cash deposits, agricultural income and other details. Whereas the A.O was not satisfied with the explanations and dealt on the provisions and made additions u/sec69A of the Act aggregating to Rs.49,26,102/-and U/sec69C of the Act of Rs.6,88,488/- and finally assessed the total income of Rs.57,75,530/- and passed the order u/sec143(3) of the Act dated 23.12.2019. 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 CIT(A) considering the information on record has confirmed the action of the A.O and dismissed the appeal. Aggrieved 3 ITA. No.54/PAN/2025 Uday Karchi. 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 3.1 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 hearing and shall cooperate in submitting the information 4 ITA. No.54/PAN/2025 Uday Karchi. 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 30.04.2025. Sd/- Sd/- (GD PADMAHSHALI) (PAVAN KUMAR GADALE) ACCOUNTANT MEMBER JUDICIAL MEMBER Panaji Dated: 30/04/2025 Copy of the Order forwarded to: 1. The Appellant, 2. The Respondent 3. The CIT(A)- 4. CIT 5. DR, ITAT, Mumbai 6. Guard file. //True Copy// BY ORDER, (Asstt. Registrar)ITAT, Panaji 5 ITA. No.54/PAN/2025 Uday Karchi. 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 "