Sanjay Champalal Jaiswal Vs ITO (ITAT Pune)
Ex-Parte NFAC Order Set Aside: Best-Judgment Assessment u/s 144 Reopened for Fresh Hearing- Cash-Deposit Addition of ₹2.25 Cr Remanded
Assessee, an individual, did not file return for AY 2015-16. Based on information of cash deposits of ₹2,25,64,860 in his account with Shri Renuka Mata Multi State Urban Co-op Credit Society during FY 2014-15, case was reopened. The assessee repeatedly failed to comply with notices u/s 142(1), & AO completed best-judgment assessment u/s 147 r.w.s.144, adding the entire cash deposit amount.
Assessee appealed before CIT(A) challenging both validity of notice u/s 148 & the quantum addition. CIT(A) issued notices on three dates—11.12.2024, 26.05.2025 & 25.06.2025—but assessee did not respond. Relying on principles such as “Vigilantibus et non dormientibus jura subveniunt” & judgments of MP High Court in Estate of Tukojirao Holkar & Supreme Court in CIT v. B.N. Bhattacharjee, CIT(A) dismissed the appeal ex parte & upheld AO’s order.
Before Tribunal, assessee submitted that he was prevented by sufficient cause from making submissions & sought a fresh opportunity, claiming he could succeed on legal grounds as well as on merits. Tribunal found merit in granting another chance in the interest of justice. The ex-parte order was set aside & all issues—including challenge to reopening u/s 148 & merits of the addition—were restored to CIT(A) for fresh adjudication. CIT(A) was directed to pass a speaking order u/s 250(6) after giving reasonable opportunity. Assessee must update latest email & ensure vigilance. Appeal allowed for statistical purposes.
