VIKASH KUMAR,PATNA vs. ACIT, CIRCLE 6, PATNA

(A.Y. 2017-2018) Vikash Kumar 2. This appeal is timed barred by 126 days. The main contention of the assessee is that the assessee was not aware of the order passed by the ld. CIT(Appeals) and the assessee came to know about the ex-parte order only after receipt of the show-cause notice under section 271AAC(1) dated 12.04.2024. Therefore, there is no negligence or latches on the part of the assessee. Considering the facts and circumstances of the case, we are of the view that since the assessee is unaware of the ex-parte order passed by the ld. CIT(Appeals) -NFAC, we find that there is a reasonable cause to condone the delay of 126 days. Therefore, the delay in filing the appeal belatedly for 126 days is hereby condoned.

Brief facts of the case are that the assessee is in individual, who filed his return of income for the assessment year 2017-18 showing total income of Rs.26,29,760/- under the heads “income from house property”, “profit and gains from business or profession” and “income from other sources”. The case of the assessee was selected for scrutiny through CASS to verify the issues on ‘closing stock’ and ‘cash deposits during demonetization period’. Survey proceedings under section 133A were also conducted on 27.02.2017. Accordingly, notice under section 143(2) of the Act was issued and served to the assessee on his registered mail through ITBA Portal as well as by Speed Post. Further notice under section 142(1) of the Income Tax Act was issued on 16.03.2019 and served upon the assessee but the assessee did not submit any reply to the said notice. As per the information available with the ld. Assessing Officer, it was found that the assessee had deposited cash amounting to (A.Y. 2017-2018) Vikash Kumar Rs.11,16,02,250/- in his Bank account No. 61316898751 maintained at State Bank of Bikaner & Jaipur during the demonetization period. Further on perusal of the ITRs submitted by the assessee for assessment years 2016-17, 2017-18, it is observed that the assessee has shown NIL Closing Stock in his ITR for the assessment year 2016-17. However, in his ITR for assessment year 2017-18, the assessee has shown Opening Stock of Rs.19,15,26,495/- as finished goods. Keeping in view of the abovementioned facts, a show-cause notice under section 142(1) of the Act dated 05.12.2019 was issued and served upon the assessee on his registered e-mail through ITBA Portal for making compliance. However, in this case, the assessee failed to produce the cash book for financial years 2015-16 and 2017-18. The assessee has failed to give any satisfactory explanation about the nature and source of cash deposits during demonetization period and the same is therefore, deemed as unexplained money under section 69 of the Act and added to the total income of the assessee. Ld. Assessing Officer determined the total income of Rs.5,10,20,010/-. On being aggrieved, the assessee preferred an appeal before the ld. CIT(Appeals).

The ld. CIT(Appeals) -NFAC in order to dispose of this appeal, the assessee was provided several opportunities of hearing and called for written submission and material evidence in support of the grounds of appeal, but the assessee has not availed any of the opportunities of being heard. Therefore, the ld. CIT(Appeals) -NFAC has disposed of the appeal on merits available on the record. The

We have heard both the sides and carefully perused the materials available on record. On examining the facts of the case, we find that the ld. CIT(Appeals)-NFAC had posted the case on several occasions, but there was no response on behalf of the assessee before the ld. CIT (Appeals-NFAC on the dates of hearing with regard to the details as called for by the ld. CIT(Appeals). Therefore, the ld. CIT(Appeals) was left with no other option except adjudicate the appeal ex-parte and dismissed the appeal by confirming the addition made by the ld. Assessing Officer. Therefore, we are of the considered view that the ld. CIT(Appeals) instead of disposing the appeal on merits, dismissed the appeal ex- parte. Therefore, considering the facts and circumstances of the case and considering the issues involved in the appeal as well as considering the plea of the ld. A.R., by following the principles of natural justice, we hereby remit the matter back to the file of Ld. CIT (Appeals)-NFAC in order to consider the appeal afresh and decide the case on merits by providing one more opportunity to the assessee of being heard in accordance with the principles of natural justice. At the same breath, we also hereby caution the assessee to promptly co-operate before the Ld. CIT (Appeals)-NFAC in the proceedings failing which the Ld. CIT (Appeals)-NFAC shall be at liberty to pass appropriate order in accordance with law and

In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open Court on 10/12/2024. Sd/- Sd/- (Sanjay Awasthi) (Duvvuru RL Reddy) Accountant Member Vice-President (KZ) Kolkata, the 10th day of December, 2024 Copies to :(1) Vikash Kumar, Mansoorganj, Patna City, Patna-800009, Bihar (2) Deputy/Assistant Commissioner of Income Tax, Circle-6, Patna, Bihar