Bhupendra Kumar Phoolchand Bind Vs ITO (ITAT Mumbai)
ITAT Mumbai held that unreasoned order confirming addition passed ex-parte is against the principal of natural justice and hence the matter is restored back to CIT(A) for fresh consideration.
Facts- The appellant is an individual. Notice u/s 143(2) dated 21.09.2018 was issued vide ITBA Portal and duly served on the assessee. Subsequently, a notice u/s. 142(1) dated 22.05.2019 was issued through ITBA Portal and same was duly served on the assessee. Due to change of incumbent, 142(1) of the Act was issued to the assessee on 11.07.2019 along with questionnaire requesting the assessee to explain the source of cash deposited in the Banks alongwith supporting documentary evidence but the assessee failed to submit his explanation. Again, a fresh notice u/s. 142(1) of the Act was issued on 07.10.2019. In response to the said notice assessee has not submitted any explanation. Again on 19.11.2019, the assessee was given a show cause notice as to why the assessment should not be completed as per the provisions of section 144 of the Act in absence of any reply. Thus, best judgment assessment u/s. 144 of the Act was passed. Therein, an amount of Rs. 5,70,243/- being 10% of Rs. 1,92,828/- was added to the total income of the assessee. Penalty proceedings were also initiated.
