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Facts
The assessee's appeal was dismissed ex-parte by the CIT(A) for non-prosecution. The assessee claims notices were not served, and they are illiterate. The AO initiated reassessment proceedings based on cash deposits.
Held
The tribunal held that the CIT(A) cannot dismiss an appeal for non-prosecution and must decide on merits. The matter was restored to the AO for a denovo assessment.
Key Issues
Whether the CIT(A) can dismiss an appeal for non-prosecution, and if proper opportunity was provided to the assessee for a denovo assessment.
Sections Cited
147, 148, 142(1), 144, 250
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH “SMC”, DELHI
(A.Y.2012-13) Virender Kumar, 249, Samaspur Khalsa, Ujwa, Delhi 110073 ...... अपीलाथ�/Appellant PAN: ASFPK-4031-L बनाम Vs. Income Tax Officer, Ward-43(1), ..... �ितवादी/Respondent Civic Centre, Minto Road, New Delhi 110002 अपीलाथ� �ारा/ Appellant by : Shri Manoj Pahwa, Chartered Accountant �ितवादी�ारा/Respondent by : Shri Manoj Kumar, Sr. DR सुनवाई क� ितिथ/ Date of hearing : 21/05/2025 घोषणा क� ितिथ/ Date of pronouncement : : 21/05/2025 आदेश/ORDER
PER VIKAS AWASTHY, JM:
This appeal by the assessee is directed against an ex-parte order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi (hereinafter referred to as 'the CIT(A)') dated 13.11.2024, for assessment year 2012-13.
Shri Manoj Pahwa, appearing on behalf of the assessee submits that on the basis of information received through AIR and CIB, the Assessing Officer (AO) initiated proceedings u/s. 147 r.w.s 148 of the Income Tax Act,1961(hereinafter referred to as ‘the Act’) on the ground that there were cash deposits to the tune of Rs.33,62,790/- in the saving bank accounts of the assessee during Financial Year (AY 2012-13) 2011-12. The AO purportedly issued notices u/s. 148 and 142(1) of the Act. The said notices were never served on the assessee physically. The assessee is an illiterate who neither understands English nor is aware about operating an email account. Thus, there was no participation by the assessee during assessment proceedings. The AO invoked the provision of section 144 of the Act and completed assessment vide order dated 08.12.2019. Against said assessment order the assessee filed appeal before the CIT(A). Even before the CIT(A) there was no representation from the assessee’s side as the Counsel for the assessee never shared with the assessee about proceedings before the CIT(A). The ld. AR prayed for an opportunity to make submissions before the lower authorities. The ld. AR submitted that the assessee has prima facie good case in his favour and would be able to explain source of cash deposits in his bank account during the relevant period.
Per contra, Shri Manoj Kumar representing the department vehemently defended the impugned order and prayed for dismissing appeal of the assessee. He submitted that the assessee is non compliant. Despite repeated notices, the assessee neither appeared before the AO nor responded to the notices of the CIT(A).
Both sides heard, orders of the authorities below examined. This appeal by the assessee is against ex-parte order by the CIT(A). The CIT(A) has dismissed appeal of assessee in limine for want of prosecution. It is a settled legal principle that the CIT(A) cannot dismiss appeal of the assessee for non prosecution. The provision of section 250 of the Act mandates the CIT(A) to pass orders on merits only.
(AY 2012-13) 5. Considering entire facts of the case and documents on record, I observe that the assessee was not able to present his case either before the AO or the CIT(A), therefore, I deem it appropriate to restore this matter back to the Assessing Officer for denovo assessment after affording reasonable opportunity of making submissions to the assessee, in accordance with law.