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Facts
The assessee deposited Rs. 98,46,500/- in cash but did not file a return of income. A notice under Section 148 was issued, and subsequently, additions were made under Section 69A and Section 115BBE for unexplained cash deposits.
Held
The Tribunal noted that both the assessment order and the CIT(A) order were passed ex-parte. In the interest of justice, the Tribunal decided to remit the issue back to the AO for fresh adjudication.
Key Issues
Whether the ex-parte assessment order and the CIT(A)'s ex-parte order should be set aside and the matter remitted for fresh consideration, given the assessee's lack of representation and conversance with tax proceedings.
Sections Cited
148, 136, 69A, 115BBE, 147, 144, 144B
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “A” BENCH : BANGALORE
Before: SHRI LAXMI PRASAD SAHU & SHRI. KESHAV DUBEY
Per Laxmi Prasad Sahu, Accountant Member :
This appeal is filed by the assessee is against the Order passed by the CIT(A) vide DIN and Order No.ITBA/NFAC/S/250/2024-25/1065440452(1) dated 06.06.2024.
Briefly stated the facts of the case are that as per information received by the Income Tax Department, during the impugned Assessment Year, assessee has deposited cash of Rs.98,46,500/- in Axis Bank account but there was no return of income filed by the assessee. In this regard, after following due procedure, a notice under section 148 of the Act was issued to the assessee. The AO provided numerous opportunities to the assessee but there was no reply from the assessee’s side. Finally a show cause notice was issued Page 2 of 3 on 02.02.2023 proposing addition of the cash deposited in the Axis Bank account and still there was no response. The bank statement was collected from the bank after issue of notice under section 136 of the Act to the bank and it was found that there was cash deposit of Rs.98,46,500/-. For want of explanation from the assessee’s side, the entire cash deposit was treated as unexplained money under section 69A of the Act and section 115BBE of the Act was applied and Order was passed on 22.02.2023 under section 147 r.w.s. 144 r.w.s. 144B of the Act.
Aggrieved from the above Order, assessee filed appeal before the learned CIT(A) on 20.12.2023 with a delay of 273 days and the assessee filed reason for delay in filing appeal. The reasons have been extracted by the learned CIT(A) in his Order and the CIT(A) did not find any reasonable cause in filing the appeal belatedly before him. After relying on some judgments, he dismissed appeal of the assessee.
Aggrieved from the above Order, assessee filed appeal before the Tribunal with a delay of 201 days. In this regard, assessee has fled affidavit which is placed on record. Accordingly, we are condoning the delay before the learned CIT(A) relying on the Order of the Tribunal in Order dated 31.10.2024. The learned Counsel submitted that the assessee is a petty contractor and doing small civil works in the remote area and he is not conversant with the income tax proceedings.
Considering the rival submissionsfrom both the sides, we noted that the Assessment Order has been passed ex-parte for want of representation from the assessee’s side, as well as the learned CIT(A) has passed ex-parte Order. Considering the facts of the case and in the interest of justice, we are remitting this issue back to the file of AO with a cost of Rs.5,000/-. Assessee has to pay Page 3 of 3 the cost and produce necessary evidence to the AO before taking up the case. Assessee is directed to co-operate with the Revenue and shall not seek unnecessary adjournment. In case of failure no second leniency shall be granted. It is ordered accordingly.
In the result, appeal filed by the assessee is allowed for statistical purposes.