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Facts
The assessee, an individual, failed to file a return of income for AY 2016-17. The case was reopened under Section 147, and despite multiple notices, the assessee did not comply. The AO framed an assessment order, which was confirmed by the CIT(A) as the assessee did not appear.
Held
The Tribunal admitted additional evidence filed by the assessee and remitted the matter back to the Assessing Officer for fresh consideration, emphasizing the need for justice and proper opportunities for the assessee.
Key Issues
Whether to admit additional evidence and remit the matter to the AO for fresh adjudication, considering the assessee's initial non-compliance and subsequent request for re-examination.
Sections Cited
147, 144, 69
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Income Tax Appellate Tribunal, “C” BENCH : BANGALORE
Before: SHRI LAXMI PRASAD SAHU & SHRI PRAKASH CHAND YADAV
Per Prakash Chand Yadav, Judicial Member
The present appeal of the assessee is arising out of the order of the ld. CIT(Appeals), National Faceless Appeal Centre, Delhi (NFAC) dated 14.10.2024 having DIN ITBA/NFAC/S/250/2024-25/ 1069645442(1) and relates to assessment year 2016-17.
The brief facts as coming out of the orders of authorities below are that assessee is an individual, could not file any return of income for the impugned assessment year. Thereafter on the basis of information, the case of the assessee was reopened u/s. 147 of the Act. During the course of re-assessment proceedings, the ld. AO issued so many notices to the assessee. However, the assessee could not comply with any of the notices of the AO. Finally the AO issued show cause notice u/s 144 on 21.2.2022 to which the assessee responded vide his letter dated 10.3.2022. Thereafter the AO sent the draft order to the assessee. It is relevant to mention here that aassessee filed another reply on 25.3.2022 explaining the source of capital introduced in his firm. Thereafter, the AO framed the assessment vide order dated 29.3.2022.
Aggrieved with the order of the AO, the assessee preferred an appeal before the ld. CIT(A). The office of the ld. CIT(A) had issued 4 notices to the assessee, however, no one appeared from the side of assessee and the ld. CIT(A) confirmed the order of the AO vide his order dated 14.10.2024.
Now the assessee has come up in appeal and has raised 12 grounds of appeal. However, the ld. counsel for the assessee appearing on behalf of the assessee, humbly submitted that the matter may kindly be restored to the file of the ld. CIT(A) for deciding it afresh or to the file of the AO. The counsel for the assessee has filed certain additional evidences before the ITAT in terms of Rule 29 of the ITAT Rules.
The ld. DR strongly relied on the orders of the authorities below and contended that the orders of authorities below may be affirmed since the assessee is non-cooperative assessee.
We have heard the rival submissions and perused the material on record. We observe that the assessee has tried to explain the source of funds which have been added by the AO u/s. 69 of the Act with the help of certain additional evidences. The assessee vide application dated 4.12.2024 has made a request to admit certain documents as additional evidence and prayed that the same may kindly be admitted in the interest of justice. It is correct that no one has appeared from the side of assessee before the lower authorities. However, it is equally true that in the interest of justice, the matter requires fresh consideration, in our view, at the end of the AO, so that the AO can examine the veracity of additional evidence filed before us. Therefore, considering the facts of the case and the totality of circumstances, we admit the additional evidence in the interest of justice and remit the matter back to the file of the AO for deciding it afresh in accordance with law. Needless to say that the AO will grant proper opportunities to the assessee before deciding the matter. It is further clarified that the assessee will also cooperate in the remand proceedings, otherwise no leniency will be available to the assessee in the second round of assessment.
In the result, the appeal of the assessee is allowed for statistical purposes.
Pronounced in the open court on this 20th day of January, 2025.