MOINUDEEN SYED ASAD HUSSAINY,SALEM vs. ITO, WARD 1(6), SALEM, SALEM

This appeal filed by the assessee is directed against the order of the ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre [NFAC], Delhi, dated 05.06.2023 relevant to the assessment year 2017-18.

Brief facts of the case are that the assessee filed his return of income for the assessment year 2017-18 on 11.09.2017 admitting total income of ₹.1,30,000/-. The case was selected for limited scrutiny under CASS for the reason “Cash deposit during the year” & Cash deposit during demonetization period”. A notice under section 143(2) of the Income Tax Act, 1961 [“Act” in short] has been e-served on the assessee. Subsequently, notice under section 142(1) of the Act, calling or further details, have been served on the assessee. After considering the submissions of the assessee, the Assessing Officer has completed the assessment under section 143(3) of the Act dated 26.11.2019 assessing total income of the assessee at ₹.4,92,500/- by making addition of ₹.3,62,500/- under section 69A of the Act as un0065plained money from unexplained sources.

The assessee carried the matter in appeal before the ld. CIT(A). Despite ample opportunities by way of hearing notices issued, the assessee has refrained from attending the appellate proceedings and has not furnished any submission, the ld. CIT(A) dismissed the appeal filed by the assessee.

On being aggrieved, the assessee is in appeal before the Tribunal. The ld. Counsel for the assessee has submitted that since the assessee was prevented by reasonable cause, he was unable to furnish any details before the ld. CIT(A) and prayed that one more opportunity may be afforded to substantiate his case.

On the other hand, the ld. DR strongly supported the orders of authorities below.

We have heard both the sides, perused the materials available on record and gone through the orders of authorities below. Since the assessee has not explained the source for the cash deposits made during demonetization period to the extent of ₹.3,62,500/-, the Assessing Officer made addition under section 69A of the Act. On appeal, the ld. CIT(A) has afforded ample opportunities by issuing various hearing notices, but the assessee has not furnished any submission. Since the ld. Counsel for the assessee has prayed for affording one more opportunity to the assessee and in order to meet the ends of natural justice, we are of the considered opinion that the assessee shall be afforded one more opportunity of being heard to substantiate its case before the ld. CIT(A). Accordingly, we set aside the appellate order and remit the matter back to the file of the ld. CIT(A) to afford one more opportunity of being heard to the assessee to substantiate his case with suitable explanation and evidences and thereafter decide the issue in accordance with law

In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the open Court on 17th October, 2023 at Chennai.