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Judgment
PER SANJAY AWASTHI, ACCOUNTANT MEMBER:
This appeal arises from order dated 22.04.2026, passed u/s 250 of the Income Tax Act, 1961 (hereafter as “the Act”), by NFAC.
In this case, the assessee’s case was reopened u/s 147 of the Act on the basis of information that there were financial transactions to the tune of Rs.311,85,740/- in the name of the assessee. It was found that the assessee had not filed any return of income for the year under consideration. Before the Ld. AO the assessee either did not respond to opportunities provided or filed partial details. Thereafter, the Ld. AO treated an amount of Rs.46,83,430/- as unexplained money u/s 69A of the Act. It is seen that a second addition of Rs.9,76,310/- was also made as unexplained expenditure u/s 69C of the Act. The third and last issue in this case was cash deposits amounting to Rs.11,78,63,867/- during the year under consideration. In this regard the assessee apparently failed to provide appropriate evidence and documents and therefore this amount was also added u/s 69A of the Act as unexplained money.
The assessee carried this matter before the ld. CIT(A) where he did not comply to any of the notices issued by the Ld. CIT(A) and this fact is recorded in para 5.3 at pages 4 to 5 of the impugned order. Thereafter, the Ld. CIT(A) confirmed the additions made by the Ld. AO and dismissed the appeal.
On the last date of hearing, none appeared on behalf of the assessee but it was decided to proceed ahead with the adjudication, with the help of Ld. DR.
The Ld. DR took us through the assessment order and pointed out that the return of income filed by the assessee in response to notice u/s 148 of the Act (filed on 20.02.2025), did not satisfactorily explain the very large value transactions shown in his account. On a consideration of the facts and circumstances of the case, and the fact that the assessee is apparently incarcerated in criminal proceedings (as gleaned from the grounds of appeal), we are inclined to set aside the impugned order and remit this matter back to the file of the Ld. CIT(A) for fresh adjudication. The assessee would do well to ensure proper representation before the Ld. CIT(A) so that his correct income would be determined.
In the result, the appeal is partly allowed for statistical purposes.