R.D.VELLI MAALIHAL,ERODE vs. ACIT CIRCLE 2, ERODE

Aforesaid appeal filed by the assessee for Assessment Year (AY) 2017-18 arises out of the order of Learned Commissioner of Income Tax (NFAC), Delhi (hereinafter "CIT(A)"] dated 20.06.2025 in the matter of assessment framed by the Assessing Officer [AO] u/s 143(3) of the Income-tax Act, 1961 (hereinafter "the Act") on 12.12.2019. retail sales of gold and silver and filed its return of income on 25.10.2017 declaring total income of Rs. 52,38,410/-. In the assessment order, the A.O made an addition of Rs. 62,25,000/- towards cash deposits during the demonetization period and a further addition of Rs. 52,02,083/- u/s. 68 of the Act. Aggrieved, the assessee preferred an appeal before the learned CIT(A). The learned CIT(A), however, observed that the assessee had failed to adduce any documentary evidence in support of its contentions and accordingly dismissed the appeal as not maintainable.

The Ld. Authorized Representative (AR) submitted that the assessment order was passed ex-parte, and the Ld. CIT(A) also dismissed the appeal ex-parte without adjudicating the matter on merits. It was therefore prayed that, in the interest of justice, the assessee may be granted one more opportunity to substantiate its case before the Assessing Officer.

We have considered the rival submissions and perused the material on record. On perusal of the orders of the A.O as well as the R.D. Velli Maalihai :- 3 -: learned CIT(A), it is evident that both the orders have been passed ex- parte due to non-compliance on the part of the assessee. The contention of the Ld. AR is that the CIT(A) has not adjudicated the issue on merits. In our considered view, and in the interest of justice as well as keeping in mind the principles of natural justice, the assessee deserves one more opportunity to present its case. Accordingly, we set aside the impugned order of the learned CIT(A) and remit the matter back to the file of the Assessing Officer 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 fixed for hearing without fail and to furnish complete details in support of its claim for fresh adjudication.

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