KRISHNAN GOMATHI,KRISHNAGIRI vs. INCOMETAX OFFICER, WARD-1, KRISHNAGIRI
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Income Tax Appellate Tribunal, ‘A’ BENCH: CHENNAI
Before: SHRI V. DURGA RAO, HON’BLE & SHRI MANJUNATHA. G, HON’BLE
आदेश / O R D E R PER MANJUNATHA.G, AM: This appeal filed by the assessee is directed against the order of the
Commissioner of Income Tax (Appeals), Income Tax Department, National
Faceless Appeal Centre (NFAC), Delhi, dated 15.05.2023, and pertains to
assessment year 2017-18.
The brief facts of the case are that the assessee is an individual and
engaged in the business of wholesale distribution of pharmaceutical
medicines and drugs under the name and style of M/s.Narein Agency. The
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assessee filed her return of income for AY 2017-18 on 22.03.2018
admitting total income of Rs.4,42,810/-. The case was selected for scrutiny
and during the course of assessment proceedings, the AO noticed that the
assessee has made cash deposits in Specified Bank Notes (in short “SBNs")
to City Union Bank, amounting to Rs.43,36,120/-. The AO called upon the
assessee to explain source for cash deposits. In response, the assessee
submitted that source for cash deposits is out of sale proceeds of
pharmaceuticals products and realization from debtors. The AO after
considering relevant submissions of the assessee, made addition of
Rs.17,92,750/- u/s.69 r.w.s.115BBE of the Income Tax Act, 1961 (in short
“the Act"). The assessee carried the matter in appeal before the First
Appellate Authority, but neither appeared nor filed any details which is
evident from Para 3.1 of the order of the Ld.CIT(A), where the Ld.CIT(A)
has given three notices on different dates, but the assessee did not appear
for hearing. Therefore, the Ld.CIT(A) disposed off appeal filed by the
assessee ex parte for non-prosecution, and sustained the additions made
by the AO towards cash deposits u/s.69 of the Act. Aggrieved by the order
of the Ld.CIT(A), the assessee is in appeal before us.
The Ld.AR for the assessee submits that the Ld.CIT(A) erred in
disposing off appeal filed by the assessee on technical grounds without
discussing the issue in violation of principles of natural justice. Therefore,
he submits that one more opportunity of hearing may be given to the
assessee to go back to the Ld.CIT(A) and file necessary details.
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The Ld.DR, on the other hand, fairly agreed that the matter may be
set aside to the file of the Ld.CIT(A) to give one more opportunity to the
assessee.
We have heard both the parties, perused the materials available on
record and gone through orders of the authorities below. We find that the
Ld.CIT(A) disposed off appeal filed by the assessee ex parte for non-
prosecution which is evident from Para No.3.1 of the order of the Ld.CIT(A),
where the Ld.CIT(A) has given three notices on different dates, but the
assessee neither appeared nor filed any details. However, such appeal has
been disposed off on technical grounds without discussing the issues on
merits. It is a well settled principle of law by the decision of various courts
and Tribunal that when the assessee is not seriously prosecuting their
appeal, then, the appellate authorities are left with no option but to dispose
off appeal on the basis of materials on record, but such appeal should be
disposed off on merits. In the present case, although, the Ld.CIT(A)
disposed off appeal filed by the assessee, but such appeal has been
disposed off on technical ground without discussing the issues on merits.
Therefore, we are of the considered view that the appeal needs to go back
to the file of the Ld.CIT(A) to give reasonable opportunity of hearing to the
assessee, and thus, we set aside the order of the Ld.CIT(A), and restore
the issue back to the file of the Ld.CIT(A), and direct the Ld.CIT(A) to
reconsider the issue after providing reasonable opportunity of hearing to
ITA No.647/Chny/2023 :: 4 :: the assessee. Needless to say, the assessee shall appear before the Ld.CIT(A), and file necessary details without seeking any adjournment.
In the result, appeal filed by the assessee is allowed for statistical purposes.
Order pronounced on the 26th day of June, 2023, in Chennai.
Sd/- Sd/- (वी. दुगा� राव) (मंजूनाथा.जी) (MANJUNATHA.G) (V. DURGA RAO) लेखा सद�य/ACCOUNTANT MEMBER �याियक सद�य/JUDICIAL MEMBER चे�ई/Chennai, �दनांक/Dated: 26th June, 2023. TLN आदेश क� �ितिलिप अ�ेिषत/Copy to: 1. अपीलाथ�/Appellant 3. आयकर आयु�/CIT 5. गाड� फाईल/GF 2. ��यथ�/Respondent 4. िवभागीय �ितिनिध/DR
