SUTHIR SUBRAMANIAM,ERODE vs. THE INCOME TAX OFFICER, WARD-2(1), ERODE, ERODE

The Ld.AR submitted that the FAA has dismissed the appeal for non-compliance and not on merits. The Ld.AR further submitted that the assessee could not submit the complete details with regard to the huge cash deposits made during the relevant year before the AO at the time of assessment proceedings. Therefore, it was prayed, in the interest of justice and equity, assessee may be provided with one more opportunity to present his case before the AO.

The Ld.DR submitted that adequate opportunities were provided from the offices of the FAA and AO and there is no violation of principles of natural justice. However, he could not controvert the fact that the FAA has dismissed the appeal for non- compliance. :- 3 -: 5. We have heard rival submissions and perused the materials on record. The proceeding before FAA was ex-parte, since the assessee did not respond to three notices issued. We strongly deprecate the nonchalant attitude of the assessee in not responding to the notices issued from the offices of the FAA. We also noted that the FAA has simpliciter dismissed the appeal for non-compliance and not adjudicated or decided merits of the case. We find that appellate authority has no juri iction to dismiss the appeal for default of non-compliance without going into merits. The FAA is bound to decide the appeal on merits even in the absence of assessee. This view of ours is supported by the decision of Hon’ble High Court of Madras in the case of Southern Steel Industries vs. AAC (CT), reported in [1996] 101 STC 273 (Mad). In term of the above, the order of FAA is set aside. Further, the Ld.AR had submitted that complete details with regard to cash deposits made during the relevant year could not be submitted at the time of assessment proceedings. Therefore, in the interest of justice and fair play, we of the view that the matter ought to be restored to the files of the AO. Accordingly, the matter is remitted to the files of the AO for fresh adjudication. The AO shall afford reasonable opportunity of hearing to the assessee. The assessee is directed to furnish the required details and co-operate :- 4 -: with the Revenue and shall not seek unnecessary adjournment. It is ordered accordingly

In the result, the appeal filed by the assessee is allowed for statistical purposes.

Ĥ×यथȸ/Respondent 3. आयकर आयुÈत /CIT, Coimbatore 4. ͪवभागीय ĤǓतǓनͬध/DR

गाड[ फाईल/GF.