MUNUSAMY RAJAMANI RAMESH,SALEM vs. ITO, WARD-1(1), 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 12.06.2023 relevant to the assessment year 2010-11.

The appeal filed by the assessee is delayed by 3 days in filing the appeal, for which, the assessee has filed petition in support of an affidavit for condonation of the delay, to which; the ld. DR has not raised any serious objection. Consequently, since the assessee was prevented by sufficient cause, the delay in filing of the appeal stands condoned and the appeal is admitted for adjudication.

Brief facts of the case are that the assessee made cash deposits to the tune of ₹.13,76,600/- as on 31.03.2010 in his bank account (ICICI Bank). The assessee did not file his return of income for the assessment year 2010-11. In order to verify the sources of the deposits, the Assessing Officer has initiated proceedings under section 147 of the Income Tax Act, 1961 [“Act” in short] and issued notice under section 148 of the Act dated 30.03.2017 and served on the assessee on 01.04.2017. In response to the above notice, the assessee filed letter on 17.08.2017 that that he had filed his return of income for the assessment year 2010-11 on 17.08.2011 admitting a total income of ₹.3,00,080/- and also enclosed the acknowledgement copy of the return of income and statement of total income. Though mentioned in the statement of total income, the assessee did not enclose income and expenditure account. Subsequently, notice under section 143(2) of the Act was issued on 26.10.2018 and served. As there was no response, notice under section 142(1) of the Act dated 04.12.2018 was issued asking (i) sources for the above deposits into ICICI Bank, (ii) cash flow statement and (iii) account copy of the assessee with M/s. King Bell Apparels. Since there was no response from the assessee till 12.12.2018 for furnishing various details as called for, the Assessing Officer issued pre-assessment notice dated 12.12.2018 informing that in case of failure to avail the opportunity of being granted, the assessee would be completed ex-parte and the cash deposits made by the assessee and other credits into his account with ICICI Bank to the tune of ₹.14,33,788/- would be added as unexplained money under section 69A of the Act. Since the assessee failed to furnish any details, the Assessing Officer has completed the assessment under section 144 of the Act assessing total income of the assessee at ₹.14,33,790/-. On appeal,

The assessee carried the matter in appeal before the ld. CIT(A). Despite various opportunities afforded, the assessee has not furnished any reply to any of the notices issued by the ld. CIT(A). Thus, 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 authorities below 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. In the absence of various details as sought for from the assessee, the Assessing Officer has completed the assessment under section 144 of the Act. The ld. CIT(A) has also afforded ample opportunities by issuing various hearing notices, but the assessee could not furnish any explanation with supporting evidence. Before the Tribunal also, the assessee has not filed any suitable explanation with supporting evidence in support of his claim. Thus, the appeal filed by the assessee is liable to be dismissed. However, 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 Assessing Officer. Accordingly, we set aside the appellate order and remit the matter back to the file of the Assessing Officer 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 subject to the condition that the assessee should pay ₹.1,000/- to the State Legal Aid Authority, Hon’ble Madras High Court and produce necessary proof of payment of cost before the Assessing Officer.

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.