Renuka Shetty Vs ITO (ITAT, Bangalore Bench)
Portal Acknowledgement Speaks Louder Than an Ex Parte Assumption—ITAT Restores ₹1.11 Crore Appeal Ignored by NFAC
The controversy
The assessee, Ms. Renuka Shetty of Udupi, was in appeal before the Bangalore ITAT for AY 2015-16 against an order passed by the CIT(A)/NFAC u/s 250.
The assessment involved aggregate additions of ₹1,11,61,525. This comprised an addition of ₹21 lakh as unexplained credits u/s 68 and a further addition of ₹90,61,525 as unexplained investment u/s 69.
The assessee had challenged both additions before the CIT(A). However, the first appeal was dismissed on the ground that she had repeatedly failed to comply with hearing notices and was apparently not interested in prosecuting the appeal.
Before the ITAT, the assessee demonstrated that detailed submissions and a paper book had actually been uploaded on the income-tax portal before the appellate order was passed. The central question therefore became whether an appeal could be dismissed as unprosecuted when the electronic record itself showed compliance.
NFAC recorded repeated non-compliance
The CIT(A) referred to hearing opportunities dated 25 December 2020, 4 October 2024, 23 October 2024 & 11 March 2025.
Since no response was noticed against those communications, the appellate authority concluded that the assessee had “miserably failed” to comply and was unwilling to pursue the appeal. The additions were consequently sustained without examining the detailed factual explanations.
