Case Law Details
Sachin Kailas Bhamare Vs Assessment Unit (ITAT Pune)
₹53 Lakh Cash Deposits of Taxpayer to Be Re‑examined After Plea of Mental & Neurological Illness:ITAT Orders Fresh Hearing
The appeal before the ITAT Pune arose from the order of the CIT(A)/NFAC dated 25.02.2025 for Assessment Year 2015-16.
At the outset, the Tribunal considered a delay of 282 days in filing the appeal. After examining the application for condonation of delay supported by an affidavit, it was satisfied that the assessee was prevented by sufficient cause from filing the appeal within the prescribed period. Accordingly, the delay was condoned and the appeal was admitted for adjudication.
The assessee, an individual, had not filed a return of income for the relevant assessment year. Based on information available on the Insight Portal, the Income Tax Department found that the assessee had deposited cash of ₹53,00,000 in a bank account and had received interest income of ₹20,128, which had not been disclosed in any return of income. Consequently, the assessment was reopened under Section 147 of the Income-tax Act, and notice under Section 148 was issued.
In response to the notice under Section 148, the assessee filed a return declaring total income of ₹47,770. The Assessing Officer completed the assessment under Sections 147 read with 144 and 144B of the Income-tax Act on 18.03.2023, determining the total income at ₹53,67,898 as against the returned income of ₹47,770. The assessed income included an addition of ₹53,00,000 under Section 69A of the Income-tax Act and an addition of ₹20,128 under the head “Income from Other Sources.”
Aggrieved by the assessment order, the assessee preferred an appeal before the CIT(A)/NFAC. However, the assessee did not appear during the appellate proceedings, and the CIT(A)/NFAC dismissed the appeal.
Before the Tribunal, the assessee submitted that he had been suffering from mental and neurological disorders, which prevented him from noticing and responding to the hearing notices issued by the CIT(A)/NFAC. It was submitted that the assessee had now recovered and requested that one opportunity be granted to present his case before the appellate authority.
The Tribunal considered the submissions and, without examining the merits of the additions made under Section 69A or any other issue, held that the matter should be restored in the interest of justice. It set aside the order of the CIT(A)/NFAC and remanded the appeal for fresh adjudication with a direction to decide the matter afresh in accordance with the facts and law after providing the assessee with a reasonable opportunity of hearing.
The Tribunal also directed the assessee to respond to all notices issued by the CIT(A)/NFAC and to produce all relevant documents, evidence and submissions in support of the grounds of appeal without seeking unnecessary adjournments. It further observed that, in the event of non-compliance, the CIT(A)/NFAC would be at liberty to pass an appropriate order in accordance with law.
Accordingly, the Tribunal set aside the ex parte appellate order and restored the matter to the file of the CIT(A)/NFAC for fresh adjudication after granting reasonable opportunity of hearing, and the appeal was allowed for statistical purposes.
FULL TEXT OF THE ORDER OF ITAT PUNE
This appeal filed by the assessee is directed against the order dated 25.02.2025 passed by Ld. CIT(A)/NFAC for the assessment year 2015-16.
2. There is delay of 282 days in filing of the present appeal. We are satisfied with the reasons mentioned in the application for condonation of delay duly supported by an affidavit that the applicant was prevented by sufficient cause for not filing the appeal within the prescribed time limit. After hearing Ld. DR, we condone the delay of 282 days and proceed to adjudicate the appeal.
3. Facts of the case, in brief, are that the assessee is an individual and has not filed the return of income for the year under consideration. On the basis of information available on insight portal that the assessee has deposited cash of Rs.53,00,000/- in his bank account and received interest of Rs.20,128/-, and the above transactions were not disclosed in the return of income. The case was reopened u/s 147 of the IT Act and notice u/s 148 of the IT Act was issued and in response to the same assessee furnished return of income by declaring income of Rs.47,770/-. Vide order dated 18.03.2023, the assessment was completed u/s 147 r.w.s. 144 r.w.s. 144B of the IT Act by determining the income of Rs.53,67,898/- as against the income returned by the assessee at Rs.47,770/-. The above assessed income includes addition of Rs.53,00,000/- u/s 69A of the IT Act and addition of Rs.20,128/-as income from other sources.
4. Being aggrieved with the above assessment order, the assessee preferred an appeal before Ld. CIT(A)/NFAC. Since the assessee remained absent, Ld. CIT(A)/NFAC dismissed the appeal filed by the assessee.
5. It is the above order against which the assessee is in appeal before this Tribunal.
6. We have heard Ld. Counsels from both the sides and perused the material available on record. In this regard, it was submitted that the assessee was suffering from mental and neurological disorder due to which he could not see and attend the hearing notices issued by Ld. CIT(A)/NFAC. It is the sole contention of counsel of the assessee that one opportunity may kindly be provided to the assessee to represent his case before Ld. CIT(A)/NFAC since now the assessee is in good health.
7. Considering the totality of the facts of the case and in the interest of justice and without going into merits of the case, we deem it appropriate to set-aside the order passed by Ld. CIT(A)/NFAC and restore the matter back to his file with a direction to decide the appeal afresh and as per fact and law after providing reasonable opportunity of hearing to the assessee. The assessee is also hereby directed to respond to the notices issued by Ld. CIT(A)/NFAC in this regard and to produce relevant documents, evidences and submissions, if any, in support of grounds of appeal without taking any adjournment under any pretext, otherwise Ld. CIT(A)/NFAC shall be at liberty to pass appropriate orders as per law. Thus, the grounds of appeal raised by the assessee are allowed for statistical purposes.
8. In the result, the appeal filed by the assessee is allowed for statistical purposes.
Order pronounced on this 13th day of May, 2026.
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