AIJAZ ALI,NEW DELHI vs. DY. COMMISSIONER OF INCOME TAX, NEW DELHI

This appeal by the assessee is directed against an ex-parte order of the Commissioner of Income Tax (Appeals)-29, New Delhi (hereinafter referred to as 'the CIT(A)') dated 04.12.2024, for assessment year 2021-22.

Shri Shravan Kumar, representing the department submitted that on 18.12.2020 cash Rs.20,00,000/- was seized from the assessee at Terminal-3, Indira Gandhi International Airport, New Delhi. During the course of assessment proceedings, the assessee was asked to explain the source of cash. The assessee submitted that he is a Interior Designer and the cash in his possession is (A.Y.2021-22) consideration received by him for his professional services during April 2020 to 15th December 2020. However, in support of his submissions no documentary evidence was furnished by him. Thereafter, the assessee changed his statement and disowned the cash stating it to be money belonging to one Altaf Hussain. Since, the assessee was inconsistent in his statement and failed to furnish source of cash in his possession, addition of Rs.19,83,800/- on account of unexplained cash was made in the hands of assessee, under the provisions of section 69A r.w.s. 115BBE of the Income Tax Act,1961(hereinafter referred to as ‘the Act’). The ld. DR further pointed that in appeal before the CIT(A), the assessee did not appear despite repeated notices. Hence, the CIT(A) was constrained to pass an ex- parte order.

We have heard the submissions made by ld. DR and have examined the orders of authorities below. This appeal by the assessee is directed against an ex- parte order of the CIT(A). A perusal of the impugned order reveals that the CIT(A) had issued five notices to the assessee i.e. on 26.08.2022, 03.11.2022, 21.06.2024, 10.07.2024 and 21.11.2024. On the initial two dates, the assessee sought adjournment. However, on the subsequent dates there was no compliance by the assessee. The CIT(A) decided appeal of the assessee in ex-parte proceedings. After considering entire facts of the case, in the interest of justice we deem it appropriate to restore this appeal back to the CIT(A) for denovo adjudication after affording reasonable opportunity of hearing to the assessee, in accordance with law.

The assesee is directed to comply with the notice(s) issued by the CIT(A), without fail.