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Facts
The assessee's bank account showed a large outstanding balance. Despite statutory notices, no return was filed, leading to an ex-parte assessment under Section 144. The CIT(A) also dismissed the assessee's appeal ex-parte due to non-response.
Held
The Tribunal noted that the case involved ex-parte orders due to the assessee's non-prosecution. Following a precedent from a co-ordinate bench, the Tribunal remitted the issue back to the JAO for fresh consideration after providing the assessee with an opportunity to be heard.
Key Issues
Whether the ex-parte assessment order passed due to non-response of the assessee should be set aside and the issue remitted back to the AO for fresh consideration.
Sections Cited
144, 68
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Income Tax Appellate Tribunal, “A” BENCH : BANGALORE
Before: SHRI. LAXMI PRASAD SAHU & SHRI. SOUNDARARAJAN K
Per Laxmi Prasad Sahu, Accountant Member :
This is an appeal filed by the assessee against the ex-parte Order passed by the learned CIT, vide DIN ITBA/NFAC/S/250/2024-25/1067183244(1) dated 31.07.2024.
Briefly stated facts of the case are that there was huge transaction in the bank account standing in the name of Bommegowda and Rangegowda at Cauvery Kalpatharu Grameen Ban, Padavalahippe Village Branch, Holenarasipura Taluk, Hassan District. The Account was operational from 04.05.2010. The total amount outstanding in the said bank account No.13102023278 as on 31.01.2012 was Rs.72,62,385/-. .Accordingly, other statutory notices were issued to the assessee and no return was filed by Page 2 of 3 assessee. The AO after giving various opportunities completed the assessment under section 144 of the Act and assessed income at Rs.1,01,92,429/- and completed the assessment on 18.03.2013.
Aggrieved from the above Order, assessee filed appeal on 19.04.2013. The learned CIT(A) issued various notices but there was no response from the assessee’s side. Therefore, he dismissed appeal of the assessee.
Aggrieved from the above Order, assessee filed appeal before the Tribunal. The learned Counsel submitted that there were group of people in village who were engaged in sand transportation activities and the accounts were opened in the name of the assessee. These are rural people they were not aware of the income tax proceedings. Therefore they could not appear / respond to the notices issued by the AO as well as CIT(A) and she further submitted that in identical case in the case of Smt. Sharadamma L/R of Late Basavegowda Vs. ITO in to 86/Bang/22025, Order dated 31.07.2025, for the Assessment Years 2009-10 to 2011-12, the issue has been remitted back to the jurisdictional AO (JAO), therefore this issue may also be remitted back to the JAO for fresh consideration.
The learned DR relied on the Order of the lower authorities.
Considering the rival submissions, it is noted that cash deposited in the bank account of the assessee has been treated as income under section 68 of the Act and the Order passed by both the authorities below are ex-parte Orders for non-prosecution by the assessee. During the course of hearing, the learned Counsel placed judgment of the Co-ordinate Bench in the case of Smt. Sharadammam L/R of Late Basavegowda Vs. ITO noted supra. The issue has been remitted back to the JAO. Therefore, considering the prayer of the ld. Page 3 of 3 counsel and in the interest of justice, we are also remitting this issue back to the file of JAO to decide the issue as per law after giving reasonable opportunity of being heard to the assessee and assessee is directed to substantiate his case with cogent documents and not seek unnecessary adjournments for early disposal of the case. In case of failure, no second leniency shall be granted to the assessee.
In the result, appeal of the assessee is allowed for statistical purposes.