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Facts
The assessee's appeal was dismissed by the CIT(A) for failure to appear. The assessee claimed they did not receive notice as their email ID was non-functional. The CIT(A) confirmed additions made by the AO regarding unexplained investments, money, and sale of securities.
Held
The Tribunal found that the assessee did not have proper knowledge of the appellate proceedings due to a non-functional email ID. Therefore, another opportunity was granted to the assessee to present their case.
Key Issues
Whether the assessee was rightly debarred from presenting their case due to non-receipt of hearing notices, and if the additions made by the AO were justified on merits.
Sections Cited
147, 144B, 69, 115BBE, 69A
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “E” BENCH, MUMBAI
order : 29.10.2025 O R D E R [ Per Rahul Chaudhary, Judicial Member:
1. 1. The present appeal preferred by the Assessee is directed against the order, dated 20/12/2024, passed by the National Faceless Appeal Centre (NFAC), Delhi [hereinafter referred to as ‘the CIT(A)’] whereby the Ld. CIT(A) had dismissed the appeal against the Assessment Order, dated 23/02/2024, passed under Section 147 read with Section 144B of the Income Tax Act, 1961 for the Assessment Year 2019-2020.
2. The Assessee has raised various ground and has grouped the same under the following heads: “Ground I(a) to (e) Unexplained investment u/s. 69 r.w.s. 115BBE of Income Tax Act.1961 of amount Rs.6,14,624/- on account of purchases of shares/securities Assessment Year 2019-2020 Ground II (a) – (g) Unexplained money u/s. 69A RWS 115BBE of Income Tax Act.1961 of amount Rs.1,40,85,853/-on account of credit transactions reflected in the bank account Ground III (a) – (e) Additions in profit and gains from business and profession of amount Rs.3.83.981/-on account of sale of shares/securities”
3. When the appeal was taken up for hearing Learned Authorized Representative for the Assessee requested that the Assessee be granted another opportunity to make out a case on merits. It was submitted that the Assessee did not receive notice of hearing issued by the Ld. CIT(A) and therefore, proper representation could not be made before the Ld. CIT(A). The aforesaid submissions were supported by the affidavit of the Assessee.
Per contra, the Learned Departmental Representative submitted that sufficient opportunity was granted to the Assessee to make representation before the Ld. CIT(A). However, since the Assessee had failed to take benefit of the same the Ld. CIT(A) was justified in dismissing the appeal.
We have considered the rival submissions recorded and have perused the material on record.
In the sworn affidavit filed by the Assessee it has been deposed that that the notices of hearing issued by the Learned CIT(A) were sent to email-ID which was not functional at the relevant time and therefore, Assessee did not have knowledge of the appellate proceedings. On perusal of the Assessment Order, we find that following additions were made in the hands of the Assessee:
(a) Addition of 614,624/- towards purchase of securities u/s. 69 RWS 115BBE of the Income-tax Act on account of Unexplained Investment.
2 Assessment Year 2019-2020 (b) Addition of Rs. 1,40,85,853 ( Rs. 4,92,000/- through Cash Deposit and Rs. 1,35,93,853/- through electronic fund transfer) proposed u/s.69A of the Income-tax Act on account of Unexplained Money. (c) Addition on account of sale of securities amounting to Rs. 3,83,981/ 7. All the above additions were confirmed by the CIT(A) since the Assessee had failed to make proper representation. Before us, the Learned Authorised Representative reiterated the averment made in the statement of facts that the relevant supporting document/details were available and if granted an opportunity the Assessee would be able to make out a case for deletion of the additions made by the Assessing Officer on merits. We note that the Assessee has also filed before us a paper-book containing the following document (a) Bank Statement highlighting Cash Deposit and Cash Withdrawals in the Financial Year 2018-2019 (b) ITR and Computation of Income for Financial Year 2018-2019 (Assessment Year 2019-2020) (c) Bank Statement highlighting loan given and received back in the Financial Year 2018-2019 and (d) Bank Statement highlighting loan received from friend and relatives in the Financial Year 2018-2019.
Therefore, given the facts and circumstances are noted hereinabove, we deem it appropriate to grant the Assessee another opportunity to make proper representation subject to payment of cost of INR.15,000/- to the deposited in the Prime Minister's National Relief Fund (PMNRF) within a period of 7 days of this order. Subject to deposit of cost as aforesaid, the order, dated 20/12/2024, passed by the CIT(A) is set aside, with the directions to adjudicate the appeal afresh after granting the Assessee a reasonable opportunity of being heard. The CIT(A) is directed to verify the payment of the aforesaid cost before adjudicating the appeal afresh. The Assessee is also directed to co-operate in the appellate proceedings and forthwith file 3 Assessment Year 2019-2020 details, documents & submission in support of its claims/contentions before the Ld. CIT(A). The Ld. CIT(A) would be at liberty to admit/consider the same as per law. It is, however, clarified that in case the Assessee fails to enter appearance and/or fails to file details/documents/submission in response to notice of hearing issued by the Ld. CIT(A), the Ld. CIT(A) shall be at liberty to decide the issues on merits on the basis of material on record. The Assessee is directed to be vigilant and track the appellate proceedings through Income Tax Business Application Portal. In terms of the aforesaid Ground No. I(d), II(f) and III(d) are allowed for statistical purposes while all other grounds are dismissed as infructuous in view of the fact that the impugned order has been set aside.
In terms of paragraph 8 above, the present appeal is treated as allowed for statistical purpose.