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Income Tax Appellate Tribunal, DELHI BENCH ‘SMC’ : NEW DELHI
(PAN : ABRFS1337A) (APPELLANT) (RESPONDENT) ASSESSEE BY : Shri V.K. Sabharwal, Advocate REVENUE BY : Shri Om Prakash, Sr. DR Date of Hearing : 09.03.2023 Date of Order : 14.03.2023 ORDER This appeal by the assessee is directed against the order of National Faceless Appeal Centre (NFAC) dated 25.11.2022 pertaining to the Assessment Year 2017-18.
The grounds of appeal
taken by the assessee read as under :- “1. That the order of the Learned Assessing Officer is arbitrary; illegal, unjust and unreasonable without having regard to the fact that the business of the assessee was closed and no notice has been received by the assessee and the addition was on mere suspicions surmises and conjectures.
2. The said business premises was vacated after the closure of business as it had been taken on lease to run the said business due to which no notice has been received by the assessee and nor any other opportunity had been provided to assessee to file the reply to notice u/s 142(1) for assessment.
3. That the Ld. A.O. erred in passing order u/s144 of The Income Tax Act, 1961 for the A.Y. 2017-18 assessed at a total income at Rs. 10,00,000/- without appreciating the facts and circumstances of the case.
4. The Ld. Assessing Officer is not justified in making an addition of Rs. 10,00,000/- u/s 69A of the Act on account of cash deposited in the bank account during the said period out of the cash in hand and realization from the debtors during the year under consideration. 5. The Ld. Assessing Officer is not justified in saying that the cash deposit in the bank account was not consonance with the income declared by the assessee in his return of income in order to ascertain the source of cash deposit.
6. The assessee was a partnership firm and closed the business after F.Y.2014-15 and the A.O. has not sent any notice at the address of the Partners so that the matter can be taken up for hearing.
The Ld. assessing officer is not justified in making an addition of cash in hand / collection from the debtors as unexplained cash credit under section 69A of Income tax Act.
The appellant had seek adjournment in reply to notice under section 250 by logging online and the same was showing submitted successfully (image is attached for reference). That thereafter communication was received on 10th Nov 9. 2022 that communication window with CIT (A) had been enabled but no opportunity was provided to file and attach the relevant documents in support of grounds for appeal.
That appellant on 27th Nov 2022 received order u/s 250 from CIT(A) 11. That the appellant craves leave to add, alter, amend and/or modify any of the grounds of Appeal
at or before the hearing of the appeal. ./2023
12. That it is further submitted, the relief prayed may be kindly allowed and order of assessing officer may kindly be quashed, set aside, annulled or be remanded back for assessment in order to provide an opportunity to appellant to file the relevant documents in support of his defense.”
3. At the outset, in this case, ld. Counsel of the assessee submitted that orders have been passed by the authorities below ex-parte as assessee did not receive necessary notices. He submitted that assessee has closed down its business and is no more existed at the place where notices were sent. He submitted that an opportunity may be given go the assessee for enabling him to appear before the AO and make necessary submissions.
Ld. DR of the Revenue did not have any objection.
Accordingly, in the interest of justice, as I noted above that assessee has closed its business and has left the place where the notices were sent, I remit the issue to the file of AO and direct that notice be sent at fresh address given by the assessee and the issue be decided afresh.
In the result, the appeal of the assessee stands allowed for statistical purposes. Order pronounced in the open court on this 14th day of March, 2023.