ELAPALAYAM MUTHUSAMY GOUNDER PALANISAMY,ERODE vs. ITO WARD 2(1), ERODE

Aforesaid appeal by assessee for Assessment Year (AY) 2017-18 arises out of the order of learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] dated 28-11-2022 in the matter of an assessment framed by Ld. Assessing Officer [AO] u/s.144 of the Act on 16-12-2019.

The Ld. AR, at the outset, pleaded for another opportunity of hearing before lower authorities which has been opposed by Ld. Sr. DR. Upon perusal of case records, it could be seen that the assessee has been assessed u/s. 144 of the Act on 16-12-2019 wherein it was saddled with addition of unexplained cash u/s. 69A of the Act for 2 - Rs.31.71 Lacs being cash deposits during demonetization period. Though the assessee preferred further appeal before Ld. CIT(A), however, it failed to make any submissions despite various opportunities as noted by Ld. CIT(A) in para 3 of the impugned order. Accordingly, the appeal was dismissed. Aggrieved, the assessee is in further appeal before me.

I find that though the assessee has remained negligent in attending the first appellate proceedings, however, keeping in mind the principle of natural justice, I deem it fit to prove another opportunity of hearing to the assessee. Therefore, the assessment stand restored back to the file of Ld. AO for de novo adjudication with a direction to the assessee to substantiate his stand failing which Ld. AO shall be at liberty to proceed with adjudication on the basis of material on record.

The appeal stand allowed for statistical purposes.