ARAPPA GOUNDER GOPAL REP BY L/H,ERODE vs. ITO,WARD-2(2), ERODE

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 14.12.2022 for the assessment year 2015-16.

Brief facts of the case are that the assessee has filed his return of income for the assessment year 2015-16 on 22.09.2015 admitting income of ₹.3,57,480/-. The return filed by the assessee was selected for 2 complete scrutiny to verify the increase in capital. The case was taken up for the regular assessment under section 143(3) of the Income Tax Act, 1961 [“Act” in short] and issued notice under section 143(2) of the Act. Against the notice under section 143(2) of the Act, the assessee sought for adjournment and provided the details which he already filed. Hence, notice under section 142(1) of the Act dated 06.11.2017 was served on the assessee to furnish computation of income statement, balance sheet, P & L account and source for capital by 13.11.2017. Despite various notices issued, the assessee has not complied with and accordingly, the Assessing Officer has completed the assessment under section 144 of the Act dated 22.12.2017 assessing total income of the assessee at ₹.1,25,27,690/- by making addition of unexplained investment (capital) of ₹.1,21,32,708/-. On appeal, in the absence of any response from the assessee, the ld. CIT(A) dismissed the appeal of the assessee.

On being aggrieved, the assessee is in appeal before the Tribunal against the exparte order of the ld. CIT(A). None appeared on behalf of the assessee despite notice of hearing has been issued. Hence, we proceed to decide the appeal on merits after hearing the ld. DR.

We have heard the ld. DR, perused the materials available on record and gone through the orders of authorities below. Against the 3 addition made in the assessment order under section 144 of the Act, the assessee filed an appeal before the ld. CIT(A. On perusal of the appellate order, we find that the ld. CIT(A) has concluded the appellate order based on written submission filed along with the grounds of appeal and not issued any notice seeking specific details to adjudicate the issue raised in the grounds of appeal of the assessee. In order to meet the ends of natural justice, we are of the considered opinion that the assessee shall be given one more opportunity of being heard to furnish complete details with documentary evidence to substantiate his claim. Thus, we set aside the appellate order and remit the matter back to the file of the ld. CIT(A) to adjudicate the issues afresh in accordance with law by affording an opportunity of being heard to the assessee.