Bhaskar Laxman Porje Vs ACIT (ITAT Pune)
Summary: The assessee filed an appeal against the order of the CIT(A)/NFAC, Nasik passed under section 143(3) read with section 147 and section 250 of the Income Tax Act, challenging the ex-parte disposal of the appeal and confirmation of the addition made by the Assessing Officer.
At the outset, the assessee sought condonation of delay in filing the appeal before the Tribunal and submitted an affidavit explaining the delay. The Tribunal found that a reasonable cause had been explained and, as the Departmental Representative had no specific objection, condoned the delay and admitted the appeal.
The assessment proceedings arose from information received by the Assessing Officer through the NMS portal that the assessee had sold immovable property during F.Y. 2017-18 and had not filed a return of income for A.Y. 2018-19. The Assessing Officer issued notice under section 148 and subsequently notice under section 142(1), but there was no compliance. The Assessing Officer therefore invoked section 144 and made an addition of Rs. 42,00,000/-, assessing total income at Rs. 42,00,000/- by order dated 27.03.2023 under section 147 read with section 144.
The assessee appealed before the CIT(A). Notices of hearing were issued, but there was no compliance. The CIT(A), relying on the information available on record, confirmed the Assessing Officer’s action and dismissed the appeal ex-parte.
Before the Tribunal, the assessee submitted that the CIT(A) had erred in confirming the Assessing Officer’s action and that the non-compliance before the CIT(A) was not intentional. The assessee submitted that it had a good case on merits and would substantiate its case with material evidence if another opportunity were granted. The Departmental Representative supported the CIT(A)’s order.
The Tribunal observed that the CIT(A) had passed the order after notices had been issued and there had been no response. However, the Tribunal noted that there could be various reasons for non-appearance or non-compliance which could not be overruled. Considering the facts, circumstances, submissions and principles of natural justice, the Tribunal considered it appropriate to provide the assessee one more opportunity to substantiate its case with evidence and information.
Accordingly, the Tribunal set aside the order of the CIT(A) and remitted the disputed issue to the file of the CIT(A) for fresh adjudication, directing that adequate opportunity of hearing be provided to the assessee. The assessee was also directed to cooperate in submitting the information for early disposal of the appeal. The appeal was allowed for statistical purposes.
Background and Assessment Proceedings
The Assessing Officer received information from the NMS portal that the assessee had sold immovable property during F.Y. 2017-18. The assessee had not filed the return of income for A.Y. 2018-19.
On the basis of the information available, the Assessing Officer formed a reason to believe that income had escaped assessment and issued notice under section 148 of the Income Tax Act. There was no compliance with the notice.
The Assessing Officer thereafter issued a notice under section 142(1) requiring the assessee to produce information and supporting evidence. There was again no compliance.
The Assessing Officer consequently invoked section 144 and made an addition of Rs. 42,00,000/-. The total income was assessed at Rs. 42,00,000/- and the assessment order was passed under section 147 read with section 144 on 27.03.2023.
Proceedings Before CIT(A)
Aggrieved by the assessment order, the assessee filed an appeal before the CIT(A). The CIT(A) considered the grounds of appeal, statement of facts and findings of the Assessing Officer and issued notices of hearing.
As there was no compliance with the notices, the CIT(A), considering the information available on record, confirmed the action of the Assessing Officer and dismissed the assessee’s appeal ex-parte.
The Tribunal’s approach to an ex-parte appellate order and the grant of another opportunity is also reflected in other TaxGuru publications concerning ex-parte CIT(A) orders and effective hearing under section 250.
Submissions Before the Tribunal
Assessee’s Submissions
The assessee submitted that the CIT(A) had erred in confirming the action of the Assessing Officer while overlooking the information relating to the assessment proceedings.
The assessee further submitted that the non-compliance with notices before the CIT(A) was not a wanton act. It was submitted that the assessee had a good case on merits and would substantiate the same with material evidence if an opportunity was granted.
The assessee therefore sought an opportunity before the lower authorities.
Departmental Representative’s Submission
The learned Departmental Representative supported the order of the CIT(A).
Tribunal’s Observations and Reasoning
The Tribunal heard the rival submissions and perused the material on record.
Prima facie, the Tribunal observed that the CIT(A) had passed the order considering the fact that there had been no compliance despite opportunities of hearing and issuance of notices. The CIT(A) was therefore of the opinion that the assessee was not interested in prosecuting the appeal and dismissed the appeal ex-parte while confirming the Assessing Officer’s action.
The Tribunal noted that the CIT(A) had issued notices as referred to in paragraph 5 of the order, but there had been no response.
At the same time, the Tribunal observed that the assessee had raised grounds challenging the addition made by the Assessing Officer and that various reasons for non-appearance or non-compliance could not be overruled.
Considering the facts and circumstances, the submissions and the principles of natural justice, the Tribunal found it appropriate to provide one more opportunity to the assessee to substantiate its case with evidence and information. Similar TaxGuru reporting has covered matters where an ex-parte NFAC order was set aside for fresh hearing.
Tribunal’s Directions
The Tribunal set aside the order of the CIT(A) and remitted the disputed issue to the file of the CIT(A) for adjudication afresh.
The CIT(A) was directed to provide adequate opportunity of hearing to the assessee. The assessee was directed to cooperate in submitting the information for early disposal of the appeal.
The Tribunal accordingly allowed the grounds of appeal for statistical purposes.
Final Decision
The appeal filed by the assessee was allowed for statistical purposes.
The order of the CIT(A) was set aside and the disputed issue was remitted to the CIT(A) for fresh adjudication after providing the assessee an adequate opportunity of hearing.
The order was pronounced in the open court on 09.07.2026.
FULL TEXT OF THE ORDER OF ITAT PUNE
The assessee has filed the appeal against the order of CIT(A)/NFAC, Nasik passed u/sec 143(3) r.w.s. 147 and u/sec250 of the Income Tax. The assessee has raised the grounds of appeal challenging the ex-parte order of the CIT(A) and sustaining the addition made by the Assessing Officer.
2. At the time of hearing, the Ld.AR submitted that there is a delay in filing the appeal before Hon’ble Tribunal and the delay was not intentional and the assessee has filed an affidavit for condonation of delay. On consideration of facts and information mentioned in the affidavit, there is a reasonable cause explained and the Ld. DR. has no specific objections. Accordingly, the delay is condoned and the appeal is admitted.
3. The brief facts of the case are that, Assessing Officer (A.O) has received information from the NMS portal that the assessee has sold immovable property in the F.Y. 2017-18 and the assessee has not filed the return of income for the A.Y. 2018-19. The Assessing Officer has reason to believe that income as escaped assessment and issued notice u/sec 148 of the Act and there was no compliance. Further, notice u/sec 142(1) of the Act was issued to the assessee to produce the information and supporting evidences and there was no compliance. Finally, the A.O considering the information available on record has invoked the provisions of Section 144 of the Act and made addition of Rs. 42,00,000/- and assessed the total income of Rs.42,00,000/- and passed the order u/sec 147 r.w.s. 144 of the Income Tax Act dated 27.03.2023.
4. Aggrieved by the order, the assessee has filed an appeal with the CIT(A). Whereas the CIT (A) has considered grounds of appeal, statement of facts, finding of the A.O and has issued notice of hearing and since there was no compliance, CIT(A) considering the information on record has confirmed the action of the AO and dismissed the assessee appeal. Aggrieved by the order of the CIT(A), the assessee has filed appeal with Hon’ble Tribunal.
5. At the time of hearing, the Ld.AR submitted that the CIT(A) has erred in confirming the action of the AO overlooking the information of the assessment proceedings and the Ld.AR mentioned that non-compliance of notices before the CIT(A) is not a wanton act and the assessee has a good case on merits and shall substantiate with material evidences and prayed for an opportunity before the Lower authorities. Per contra, the Ld.DR supported the order of CIT(A).
6. Heard the rival submissions and perused the material on record. Prima facie CIT(A) has passed the order considering the facts that there is no compliance in spite of providing adequate opportunity of hearing and notices were issued. Therefore, CIT(A) was of the opinion that the assessee is not interested in prosecuting the appeal and dismiss the appeal ex -parte confirming the action of the Assessing Officer. Whereas the CIT(A) has issued notices re ferret Para 5 of the order but there was no response. Whereas the assesse has raised grounds of appeal challenging the addition made by the A.O and there could be various reasons for non appearance/ non compliance which cannot be overruled. Therefore, considering the facts, circumstances, submissions and principles of natural justice, 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 disputed issue to the file of the CIT(A) to adjudicate afresh and the assessee should be provided adequate opportunity of hearing and shall cooperate in submitting the information for early disposal of appeal. And the grounds of app eal of the assesse are allowed for statistical purposes.
7. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the open court on 09.07.2026
