SRI. SAMIULLA,SHIMOGA vs. INCOME TAX OFFICER, WARD-1 &TPS, SHIMOGA

The present appeal of the assessee is arising out of the order of the ld. CIT(Appeals), National Faceless Appeal Centre, Delhi (NFAC) dated 18.10.2024 having DIN ITBA/NFAC/S/250/2024-25/ 1069770648(1) and relates to assessment year 2018-19.

The ld. counsel for assessee has drawn our attention to ground No.2 of the appeal in which it has been urged by the assessee that the ld. CIT(Appeals) has not granted proper and full opportunity of hearing to the assessee before deciding the appeal of the assessee. The ld. counsel further pointed out that the ld. CIT(A) has issued only 3 notices of hearing as evident from para 3 of the impugned order. At last, the ld. counsel for the assessee prayed that the matter may be restored to the file of ld. CIT(A) for adjudicating it afresh.

The ld. DR appearing on behalf of the revenue pointed out that assessee has not appeared before the AO also and could not comply with the notices of the AO during the assessment proceedings. Therefore, in these circumstances it could be concluded that the assessee is not cooperating with the income tax department and not coming clean.

We have heard the rival submissions and perused the material available on record. In this case, the assessee has not filed any return of income originally. Observing that there was huge credits in the bank accounts of the assessee, the case of the assessee has been reopened u/s. 147 of the Act. During the course of assessment proceedings, the AO has issued so many notices to the assessee as evident from page 2 of the assessment order. However, the assessee could not comply with the notices of the AO and therefore the AO has framed the assessment u/s. 144 of the Act. However, in our view, the AO has not appreciated that the entire credits cannot be treated as unexplained credit without any cogent material. It is further observed by us that the ld. CIT(A) has issued only 3 notices of haring to the assessee and thereafter affirmed the order of the AO. Considering the facts and circumstances of the case and the undertaking given by the ld. counsel of the assessee now that assessee would appear before the ld. CIT(A) and make submissions and file documentary evidence in accordance with law, we are of the view that the matter requires fresh adjudication at the end of the CIT(Appeals). Therefore, we restore the matter to the file of the ld. CIT(Appeals) for fresh adjudication, subject to the cost of Rs.5,000/- (Rupees Five Thousand Only) to be deposited by the assessee under the head “Others” and challan to be submitted with the CIT(Appeals). It is also made clear that the in case of any further default, no lenience would be available to the assessee.