Hariom Enterprises vs. ITO

Parties Involved

Facts Summary

The assessee, Hariom Enterprises, a partnership firm, did not file its return of income as there was no taxable income. The Assessing Officer (AO) observed cash deposits of Rs 1,06,03,723/- in the assessee's bank account and proceeded to reopen the assessment under section 147 of the Income-tax Act, 1961. The AO issued a notice under section 148 of the Act, which was served via email. The assessee did not respond to the notice or subsequent requests for information. The case was referred to the Verification Unit, which sent notices under section 142(1) of the Act via Speed Post. Again, the assessee did not respond. The AO added the cash deposits as unexplained income and completed the assessment under sections 144, 147, and 144B of the Act. The assessee appealed to the National Faceless Appeal Centre (NFAC), which dismissed the appeal under section 249(4)(b) of the Act for not filing a return of income and not paying advance tax. The assessee then appealed to the Income Tax Appellate Tribunal (ITAT).…

Legal Issues

• 1. Whether the NFAC was correct in dismissing the appeal under section 249(4)(b) of the Act?
• 2. Whether the assessee is entitled to a de novo adjudication of the addition and any legal grounds?

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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