DINESH PRASAD,AURANGABAD vs. ACIT CENTRAL CIRLCLE-1, GAYA

The only issue raised in the grounds of appeal is against the confirmation of addition of Rs. 2,81,51,800/- by the Ld. CIT(A) as made by the AO on account of cash deposit during demonetization period in the bank account of the assessee.

At the outset, we note that there is a delay of two days in filing the appeal. After considering the rival contentions and facts available on record, we find that the delay is for sufficient and bonafide reasons and accordingly the same is condoned and the appeal is admitted for adjudication.

We note that the assessment has been framed by the AO ex-parte u/s 144 of the Act vide order dated 29.11.2019 when the assessee failed to turn up on various dates/ hearing allowed by the AO. Finally, the AO made addition in respect of cash deposited by the assessee during demonetization period by treating the same as unexplained cash credit u/s 68 of the Act.

Similarly the Ld. CIT(A) in the appellate proceedings allowed the assessee as many as eight opportunities have given however, the assessee failed to respond the same. Finally the Ld. CIT(A) upheld the order of AO by dismissing the appeal of the assessee.

After hearing the rival contentions and perusing the material available on record, we find that the proceedings before the AO as well as the Ld. CIT(A) were ex- parte when the assessee failed to respond r on the various dates of hearing. The addition made by the AO is on account of cash deposits during demonetization period and the same remained unexplained before both the parties. On the prayer of the assessee , we may deem it fit and reasonable and also in the interest of justice and fair play to restore the matter to the file of AO for de novo adjudication of the issue after affording a reasonable opportunity of hearing to the assessee.

In the result, the appeal of the assessee is allowed for statistical purposes.