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Income Tax Appellate Tribunal, “DB” BENCH, JODHPUR
O R D E R
PER PAVAN KUMAR GADALE JM:
The assessee has filed the appeal against the order of the National Faceless Appeal Centre (NFAC), Delhi / CIT(A) passed u/sec147 and U/sec 250 of the Income Tax Act, 1961. The assessee has raised the following grounds of appeal:
1. The LdCIT(A)NFAC without providing a meaningful opportunity rejected an appeal as none attendant.
2. The Ld. CIT(A), NFAC erred in confirm the validity of issuance of notice u/s 148, solely based on the search
Shri Kulu Lal soni. Chittorgarh - 2 - proceedings at third party, and without application of independent mind by the authority concerned.
3. The Ld. CIT(A), NFAC erred in upholding assessment order without appreciating that it was an arbitrary order u/s 147 rws 144B, is against the principle of natural justice and liable to quash .
The Ld. CIT(A), NFAC erred in uphold the invoking provision of section 69A of the Act on business receipts.
The Ld. CIT(A), NFAC erred in upholding addition u/s 69A of Rs. 17,22,221/- leads to double taxation, so, is unlawful and liable to quash.
The Ld. CIT(A), NFAC erred in upholding addition u/s 69A of Rs. 17,22,221/- treating the business receipts as an unexplained money.
The appellant craves leave to add, alter, amend, modify and/or delete all or any of the grounds of the appeal on or before the final hearing, if necessary
The brief facts of the case are that the assessee is an individual and the assessee has filed the return of income for the A.Y 2017-18 on 29.09.2017 disclosing a total income of Rs. 6,27,660/- and the return of income was processed u/s 143(1) of the Act. There was search action carried out in the case of DRA Group of Ahmedabad and the AO found that there is a Shri Kulu Lal soni. Chittorgarh - 3 - information relating to the assessee was found. The AO has reason to believe that the income has escaped the assessment and notice u/s 148 of the Act was issued. The AO dealt on the facts and the provisions on the accommodation entries transactions and made addition u/s 69A of the Act of Rs. 17,22,221/- and assessed the total income of Rs. 23,49,880/- and passed the order u/s 143(3) r.w.s 147 r.w.s 144B of the Act dated 26.03.2022.
Aggrieved by the order, the assessee has filed an appeal before the CIT(A),whereas the CIT(A) has considered the grounds of appeal, statement of facts and findings of the AO and has issued notices of hearing and since there was no compliance by the assessee to notices. Therefore the CIT(A) considering the information on record has confirmed the action of the A.O and dismissed the appeal. Aggrieved by the ex parte order of the CIT(A), the assessee has filed an appeal before the Hon’ble Tribunal.
4. At the time of hearing, none appeared on behalf of the assesee. Contra, the Ld. DR supported the order of the CIT(A).
Shri Kulu Lal soni. Chittorgarh - 4 - 5. We heard the Ld.DR submissions and perused the material on record. Prima-facie the CIT(A) has passed the order considering the fact that there is no appearance in spite of providing adequate opportunity of hearing and the notices were issued. Therefore, the CIT(A) was of the opinion that the assessee is not interested in prosecuting the appeal and dismissed the appeal ex-parte confirming the action of the assessing officer. The Ld. CIT(A) has issued the notices of hearing referred at Page 3 Para of the order, but there was no response and thus the Ld.CIT(A) came to a conclusion that the assessee is not interested and decided the appeal based on the information available on record. Whereas the assessee has raised grounds of appeal challenging the addition made by the A.O and there could be various reasons for non appearance which cannot be overruled. Therefore, considering the principles of natural justice shall provide with one more opportunity of hearing to the assessee to substantiate the case with evidences and information. Accordingly, we set aside the order of the CIT(A) and remit the entire disputed issues to the file of the CIT(A) to adjudicate afresh and the assessee should be provided adequate opportunity of hearing and shall cooperate in submitting the information for early
Shri Kulu Lal soni. Chittorgarh - 5 - disposal of the appeal. And the grounds of appeal of the assessee are allowed for statistical purposes.
6. In the result, the appeal filed by assessee is allowed for statistical purposes.
Order pronounced in the open court on 18.08.2023.