Ashok Hirachand Shah Vs Assessing Officer (ITAT Pune)
NFAC Can’t Dismiss Appeal for Non-Appearance Without Merits Adjudication: ITAT Pune Restores ₹1.49 Cr 69A Addition Case
Pune ITAT, set aside the order of the CIT(A), NFAC, Delhi, and restored the matter for fresh adjudication on merits.
The case arose from a reassessment u/s 147 where the AO made additions aggregating to ₹1.51 crore, including ₹1.49 crore u/s 69A towards alleged unexplained cash deposits in multiple bank accounts, ₹71,048 as estimated business income by applying 2% NP on current-account transactions, and ₹1.54 lakh as undisclosed interest income. The CIT(A)/NFAC upheld the additions, rejecting the plea that the assessment was bad in law for not mentioning the specific section and holding that the assessee failed to discharge the onus u/s 69A, mainly due to repeated non-compliance.
Before the Tribunal, the assessee explained that non-appearance before NFAC was not deliberate, citing serious medical issues and unavoidable circumstances, and pleaded that adequate opportunity was never effectively availed to place material on record. The ITAT noted that though the assessee had indeed failed to respond before NFAC, the appellate authority had mechanically affirmed the AO’s conclusions without independent examination of merits.
Considering the totality of facts and in the interest of justice, the Tribunal held that the matter deserved one effective opportunity. Accordingly, the NFAC order was set aside, and the issues relating to unexplained cash deposits u/s 69A, estimated business income and interest addition were restored to the file of the CIT(A)/NFAC for fresh decision in accordance with law after granting due opportunity. The assessee was cautioned to cooperate and not seek unnecessary adjournments. The appeal was allowed for statistical purposes.
FULL TEXT OF THE ORDER OF ITAT PUNE
