PRAKASH MAHIBA DEVI,COIMBATORE vs. ITO, WARD-2(1), TIRUPUR

The Assessee raised the following ground of appeal : “1) The Impugned Order is bad and erroneous in law and liable to be quashed.

Briefly, the facts of the case are that the appellant is an Individual. No regular Return of Income for the Assessment Year 2013-14 was filed by the appellant. Subsequently, based on the information that the appellant made time deposits of Rs.16,00,000/- with the bank, the Assessing Officer formed an opinion that income got escaped assessment from tax. Accordingly, a notice u/s.148 of the Income Tax Act, 1961 was issued on 27.03.2021 calling upon by the appellant to file Return of Income. The appellant neither complied with the notice u/s.148 of the Act, nor the notice issued u/s.142(1) of the Act. In the circumstances, the NFAC (hereinafter called ‘AO) had proceeded with framing the best judgement assessment vide order dated 15.03.2022 passed u/s.147 r.w.s 144 read with section 144B of the Act at a total income of Rs.16,00,000/-. While doing so, the Assessing Officer made an addition of time deposits of Rs.16,00,000/- as unexplained investment of the appellant.

Being aggrieved by the above assessment order, the appellant preferred an appeal before the Learned CIT(A), who vide impugned order enhanced the addition by Rs.42,75,000/- by directing the Assessing Officer to make addition of cash deposits of Rs.42,75,000/- made in account maintained with State Bank of India.

Being aggrieved by the order of the Learned CIT(A), the appellant is in appeal before us in the present appeal. It is submitted that the appellant could not respond to notices of the enhancement dated 28.11.2025 issued by the Learned CIT(A), as the said notice was not served upon the appellant, therefore, it is prayed that the entire order of the Learned CIT(A) may be set-aside and remanded to the file of Learned CIT(A) for denovo disposal of appeal

On the other hand, the Learned DR has no serious objection for remand the matter to the file of the Learned CIT(A) for fresh disposal.

We heard rival submissions and perused the material available on record. We find from the order of Learned CIT(A) that ld.CIT(A) had issued an enhancement notice proposing to make addition of cash deposits in the account maintained with State Bank of India. On mere reading of the order of the Learned CIT(A), we are unable to discern that the ld.CIT(A) had afforded a reasonable opportunity to the appellant to explain as to why enhancement is not warranted. In the circumstances, we are of the considered opinion that matter requires a remand to the file of the Learned CIT(A) for denovo disposal of appeal in accordance with after affording an opportunity of being heard to the appellant.

In the result, appeal filed by the assessee is partly allowed for statistical purpose. Order pronounced in the open Court on 14th August, 2026. (MANU KUMAR GIRI) (INTURI RAMA RAO) JUDICIAL MEMBER ACCOUNTANT MEMBER Chennai; िदनांक / Dated : 14th Aug, 2026 SGR, Sr.PS आदेश क" "ितिलिप अ"ेिषत / Copy of the Order forwarded to : अपीलाथ" / The Appellant.

GANGADHARA RAO SALEELA Date: 2026.08.25 15:32:41 +05'30'