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Facts
The assessee filed an appeal against the order of the National Faceless Appeal Centre (NFAC) which arose from an assessment order. There was a delay of 171 days in filing the appeal before the Tribunal.
Held
The Tribunal condoned the delay and admitted the appeal. It was found that the CIT(A) had decided the issue ex parte without proper adjudication. Therefore, the appeal was restored to the CIT(A) for fresh adjudication.
Key Issues
Whether the CIT(A) was justified in confirming the addition on account of cash deposit without proper adjudication; and the validity of reopening of assessment.
Sections Cited
174, 143(3)
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Income Tax Appellate Tribunal, DELHI BENCH “SMC”: NEW DELHI
O R D E R
The appeal in AY 2012-13 arises out of the order of the ld. National Faceless Appeal Centre (NFAC), Delhi [hereinafter referred to as ‘ld. CIT(A)’, in short] in Appeal No. ITBA/NFAC/S/250/2024- 25/1069727892(1) dated 17.10.2024 against the order of assessment passed u/s 174 r.w.s. 143(3) of the Income-tax Act, 1961 dated 05.12.2019 (hereinafter referred to as ‘the Act’) by ITO, Ward-4, Panipat (hereinafter referred to as ‘ld. AO’).
At the outset, I find that there is a delay in filing of appeal by the assessee by 171 days before us. Considering the reasons adduced in the condonation petition supported with an affidavit placed on record, I am inclined to condone the delay and admit the appeal of the assessee for adjudication.
The only issue to be decided on merits in this appeal is as to whether the learned CITA was justified in confirming the addition made on account of cash deposit made in the bank account in the facts and circumstances of the instant case.
I have heard the rival submissions and perused the materials available on record. On perusal of the order of the ld CITA, I find that the ld CITA had decided the issue ex parte without adjudicating the issue on merits giving its independent finding. Hence, in the interest of justice and fairplay, I deem it fit and appropriate to restore this appeal to file of ld CITA for de novo adjudication in accordance with law. Needless to mention the assessee be given reasonable opportunity of being heard. The assessee is directed to cooperate with ld CITA for expeditious disposal of the appeal by not taking unwarranted adjournments. Hence, the grounds raised by the assessee on merits are allowed for statistical purposes.
The other grounds raised by the assessee challenging the validity of reopening of assessment are also restored to the file of ld CITA. The assessee is given liberty to file additional grounds and additional evidences, if any, in support of his contentions, which shall be duly considered by the ld CITA. The ld CITA is directed to pass a speaking order after taking into account all the evidences placed on record by the assessee.
In the result, the appeal of the assessee is allowed for statistical purposes.