Loading judgment…
Facts
The assessee filed a return of income for AY 2017-18. The Assessing Officer (AO) re-opened the case upon information of significant cash purchases and issued notices. The assessee failed to respond to these notices, leading the AO to pass an ex-parte order treating the cash purchases as unexplained expenditure under Section 69C and Section 115BBE.
Held
The CIT(A)/NFAC dismissed the assessee's appeal, agreeing with the AO's ex-parte assessment due to the assessee's non-compliance with notices. The Tribunal, considering the assessee's plea of being a senior citizen and the failure to represent the case before lower authorities, decided to grant one more opportunity.
Key Issues
Whether the ex-parte assessment order passed due to non-compliance is justified, and whether the assessee, being a senior citizen, should be granted another opportunity to present their case.
Sections Cited
148, 142(1), 144, 69C, 115BBE, 250
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “B’’BENCH: BANGALORE
Before: SHRI WASEEM AHMED & SHRI KESHAV DUBEY
PER KESHAV DUBEY, JUDICIAL MEMBER:
This appeal at the instance of the assessee is directed against the order of ld. CIT(A)/NFAC dated 14.8.2025 vide DIN & Order No. ITBA/NFAC/S/250/2025-26/1079619691(1) passed u/s 250 of the Income Tax Act, 1961 (in short “the Act”) for the AY 2017-18.
The assessee has raised the following grounds of appeal: -
3. The Brief facts of case are that the assessee filed his return of income for the AY 2017-18 on 31/10/2017 declaring total income of Rs.5,38,250/-. As per the information available with the Department, the assessee made cash purchases of Rs.75,53,772/- from M/s. Bait-AL-Tamurat. In view of the above fact, the case for AY 2017-18 was re-opened and accordingly notice u/s. 148 of the Act was issued on 31/03/2021. The assessee did not file any return in response to notice u/s. 148 of the Act. Further, notice u/s. 142(1) of the Act was also issued along with the questionnaire on several occasions, however no reply/ explanation was furnished by the assessee in response to said notices. During assessment proceedings, the AO noticed that the assessee had undertaken huge financial transaction of Rs.75,53,772/- by way cash purchases, however the source of entering such huge transactions was not conclusively proved. The AO finally inferred that the assessee is deliberately avoiding to make compliances of the statutory notices and accordingly have no option but to pass the ex-parte order u/s. 144 of the Act by treating of Rs.75,53,772/- as unexplained expenditure u/s. 69C of the Act r.w.s 115BBE of the Act and completed the assessment proceedings on a total assessed income of Rs.80,92,022/-.
4. Aggrieved by the order of AO passed u/s. 144 of the Act dated 27/03/2022, the assessee preferred an appeal before the ld. CIT (A)/NFAC.
The ld. CIT (A)/NFAC dismissed the appeal of the assessee on the ground that despite issuing 4 nos of notices for hearing, the assessee neither responded to any of the notices nor filed any written submissions in support of his claim. The ld.CIT(A)/NFAC constrained to agree with the approach adopted by the AO in Sukhraj Pratapchand Porwal, Vijayapur Page 5 of 6 making addition. The ld.CIT(A)/NFAC held that the AO has passed a detailed, reasoned and speaking order considering all the facts and the circumstances of the case as well as material available with him on record and therefore no interference with the order of the AO is called for.
Again, aggrieved by the order of ld.CIT(A)/NFAC dated 14/08/2025, the assessee has filed the present appeal before this Tribunal.
Before us, the ld. A.R. of the assessee vehemently submitted that the assessee could not represent his case before both the Authorities below. Further, the ld. A.R. of the assessee submitted that the assessee being a Senior Citizen, one more opportunity may be granted before the AO to substantiate his claim. The ld. A.R. also undertakes to file all the necessary documentary evidences before the AO to substantiate the claim of the assessee.
The ld. D.R. on the other hand supported the order of the Authorities below.
We have heard the rival submissions and perused the material available on record. The contention of the ld. A.R. of the assessee is that assessee being a Senior Citizen could not represent his case before both the Authorities below and also undertakes to file all the relevant documentary evidences before the AO if the matter is remitted back to the file of AO. On going through the assessment order, we take a note of the fact that the AO has passed the order ex-parte u/s. 144 of the Act. Further, on going through the order of ld.CIT(A)/NFAC, we also observed that the assessee could not represent his case before the ld.CIT(A)/NFAC. This being so, in the interest of justice, equity and fair play, and as requested Sukhraj Pratapchand Porwal, Vijayapur Page 6 of 6 by the ld. AR of the assessee, we deem it fit and proper to remit the entire issue in dispute to the file of AO to decide a fresh in accordance with law. Needless to say, a reasonable opportunity of being heard must be granted to the assessee. The assessee is also directed to co-operate with the proceedings and submit all the necessary documents/ evidences/ information/ certificate in support of his contention or any other documents/ information as may be required by the AO for the completion of the Assessment proceedings. We make it clear that in case of further default, the assessee shall not be entitled for any leniency. It is ordered accordingly.
In the result, appeal filed by the assessee is partly allowed for statistical purposes.