The Commissioner (Appeals) cannot dismiss an appeal solely based on non-appearance, and must adjudicate merits.

IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, MUMBAI BEFORE SHRI OM PRAKASH KANT, ACCOUNTANT MEMBER SHRI SANDEEP SINGH KARHAIL, JUDICIAL MEMBER ITA No.2284/MUM/2025 (Assessment Year : 2013-14)

Amit Prabhunath Jaiswal, Jaiswal Niwas, Plot No.253 Sector-6, Darshan Darbar Marg, Nerul (W), Navi Mumbai - 400706 ............... Appellant PAN : AIBPJ1635K v/s Income Tax Officer, Ward – 28(1)(1)

……………… Respondent Aaykar Bhavan Income Tax Office, Tower No.6, Vashi Railway Station, Commercial Complex, Vashi, Navi Mumbai-400703 Assessee by : Shri Harshit Kabra, CA (virtually present)

Revenue by : Shri Aditya Rai, Sr.DR Date of Hearing – 30/07/2025 Date of Order - 04/08/2025

O R D E R

PER SANDEEP SINGH KARHAIL, J.M.

The assessee has filed the present appeal challenging the impugned order dated 14/03/2023, passed under section 250 of the Income Tax Act, 1961 (“the Act”) by the learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, [“learned CIT(A)”], for the assessment year 2013-14.

2. In this appeal, the assessee has raised the following grounds: -

“1. Invalid Approval u/s 151 of the Act the assessment u/s. 147 is invalid.

The notice u/s 148 has been issued without proper approval u/s 151 of the Act from CCIT, therefore, the notice issued u/s. 148 of the Act is not a valid notice and hence all further assessment proceedings are invalid.

2. The Assessment order passed under Sec 147 rws 144B of the Income Tax Act, 1961 is without jurisdiction, void and bad in law.

A search under Sec 132 was conducted in the case of M/s. Renuka Mata Multi State Ur. Co-operative Credit Society Ltd on 26/05/2017.

The information in respect of my credits in my bank account provided on insight portal. The proceedings have been commenced on the basis of search and material seized in search or post search inquiry in respect of third party, the provisions of sec. 153C of the Act are applicable for assessment in the case of third party, this excludes the application of sections 147 and 148 of the Act and hence the notice issued under sec.148 and proceedings under sec.147 of Income Tax Act, 1961 are illegal and void ab initio.

Thus, the order passed by the learned AO u/s. 147 ws 144 is not valid liable to be quashed.

3. Legality of assessment order u/s 147.

i) The learned Assessing Officer has erred in invoking the provisions of Explanation 2(a) of sec 147 instead Explanation 2(ca) of sec 147 of the Act for reasons recorded, when information received by A.O. from DCIT Central Circle 4(4) Mumbai.

ii) The provisions of sec 153C provides that persons relating to whom some material is found in search or post search inquiry of some other person shall be assessed under sec 153C of the Act and reasons shall be recorded under Explanation 2(ca) of sec 147 of the Act.

iii) The approval of higher authorities under sec 151 on wrong forming reason to believe and details of escapement of income in respect of Cash deposit & invoking Sec 69A Explanation 2(a) of sec 147 instead Explanation 2(ca) of sec 147 of the Act and subsequently the notice issued u/s. 148 on such invalid approval is void.

iv) The notice issued under Sec 148 and proceedings under Explanation 2(a) of Sec

147 is void ab initio and assessment order passed under section

147 rws. 144 is bad in law which may kindly be quashed.

v) The assessing officer has not independently applied his mind to the facts of this case and has merely relied upon information received on insight portal by AO of search party which amounts to borrowed satisfaction, which is impermissible in the eyes of the law and therefore the addition needs to be deleted in the interest of equity and justice.

Thus, the assessment order pa