IMMACULATE HEART OF MARY,MAYILADUTHURAI vs. INCOME TAX OFFICER, EXEMPTIONS WARD, TRICHY, TRICHY

The assessee is a trust and has not filed the return of income for the relevant assessment year. Based on the information available, the A.O found that there were cash deposits of Rs.78,11,200/- in the assessee’s bank account with Canara Bank and interest income of Rs.1,06,530/-. Since no return of income was filed, the A.O reopened the assessment by issuing a notice u/s. 148 of the Act. The A.O completed the assessment ex-parte u/s. 144 of the Act, making an addition of Rs.79,17,730/-, as the assessee failed to comply with the notices issued as well as the details called for. Aggrieved, the assessee preferred an appeal before the Ld. CIT(A). However, the Ld.

CIT(A) dismissed the appeal ex-parte, upholding the order of the A.O as the assessee did not comply with the notices issued.

The Learned Authorized Representative (Ld. A.R) contended that the Ld. CIT(A) had issued three notices allowing only three days time for compliance and dismissed the appeal ex-parte without providing sufficient opportunity. It was further submitted that the assessee is a trust and that the assessment order was also passed ex-parte with substantial additions. Therefore, the Ld. A.R prayed that the assessee may be granted one more opportunity to substantiate its case.

The Learned Departmental Representative (Ld. D.R) relied on the orders of the lower authorities and requested that the appeal be dismissed.

We have heard the rival submissions and perused the materials available on record. We find that the assessment order in this case has been passed ex-parte by making addition of Rs. 79,17,730/-. The Ld. CIT(A) grated only three days time for making the compliance.

Therefore, keeping in view the principles of natural justice, we are of the opinion that one more opportunity should be granted to the assessee to substantiate his case before the A.O. Accordingly, we set aside the impugned order and remit the matter back to the file of A.O for denovo assessment in accordance with law, after affording reasonable opportunity of hearing to the assessee. The assessee is directed to appear before the A.O on the date of hearing without fail and to furnish complete details in support of its claim for fresh adjudication. In view of the above, the appeal filed by the assessee is allowed for statistical purposes only.

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