Loading judgment…
Facts
The assessee, a sole proprietor, deposited Rs. 6,38,000/- in Specified Bank Notes during demonetization. The Assessing Officer treated this as unexplained money under Section 69A, and the CIT(A) confirmed the addition ex-parte. The assessee's appeal was delayed by 167 days, which was condoned.
Held
The Tribunal held that both the AO and CIT(A) passed ex-parte orders without granting sufficient opportunity to the assessee. Therefore, to uphold principles of natural justice, the matter was remitted back to the AO for de novo assessment.
Key Issues
Whether the ex-parte orders passed by the AO and CIT(A) were justified, and if the assessee was denied a reasonable opportunity to present their case.
Sections Cited
143(3), 69A
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, ‘C’ BENCH: CHENNAI
Before: SHRI GEORGE GEORGE K & SHRI JAGADISH
आदेश / O R D E R
PER JAGADISH, A.M : Aforesaid appeal filed by the assessee for Assessment Year (AY) 2017-18 arises out of the order of Learned Commissioner of Income Tax, Appeal, Addl./JCIT(A)-2, Noida [hereinafter “CIT(A)”] dated 24.01.2024 in the matter of assessment framed by Ld. Assessing Officer [AO] u/s. 143(3) of the Income-tax Act, 1961 (hereinafter “the Act”) dated 17.12.2019.
There is a delay of 167 days in filing the appeal by the assessee.
The assessee has filed condonation petition stating the reasons for delay in filing the appeal. We have considered the petition/affidavit of delay in filing the appeal and satisfied that there was sufficient cause for not filing the appeal within the prescribed time limit. Hence, the delay is hereby condoned.
The assessee is a sole proprietor engaged in the business of dealing in Sun DTH, Dish Infra Services Pvt. Ltd. and also works as a contractor. The assessee filed his return of income declaring total income of Rs. 5,74,600/-. It was noticed that the assessee had deposited cash of Rs. 6,38,000/- in Specified Bank Notes (SBN) during the period of demonetization. In the assessment order passed u/s. 143(3) of the Act, the Assessing Officer made an addition u/s. 69A of the Act treating the said deposits as unexplained money. Aggrieved, the assessee preferred an appeal before the Ld. CIT(A). However, the Ld. CIT(A), by passing an ex-parte order, confirmed the addition on the ground that the assessee failed to satisfactorily explain the source of the cash deposits.
The Ld. Authorized Representative (A.R) of the assessee submitted that the assessee is engaged in multiple businesses as a dealer in Sun DTH, Dish Infra Services Pvt. Ltd. and also as a contractor for Goldcrest Services Pvt. Ltd. It was contended that the cash deposits were out of business receipts. The Ld. A.R further submitted that sufficient opportunity was not granted to the assessee either by the Assessing Officer or by the Ld. CIT(A), as both authorities passed their orders ex-parte. Therefore, it was prayed that the matter may be restored to the file of the A.O for fresh consideration in the interest of justice.
The Ld. Departmental Representative has relied on the orders of the authorities below.
We have heard the rival submissions, and perused the materials available on record. On perusal of the orders of A.O as well as Ld. CIT(A), we find that both the orders have been passed for the non- compliance by the assessee. The Ld. A.R has submitted that the Ld. CIT(A) has not decided the issue on merits, therefore the case may be remanded back to the A.O for adjudication on merits. We are of the opinion that keeping in view the principles of natural justice, the assessee be provided with another opportunity of hearing to substantiate his case before the A.O. Accordingly, we remit the matter back to the file of the A.O for denovo assessment in accordance with law, after giving reasonable opportunity to the assessee. We also direct the assessee to appear before the A.O on the date of hearing without fail and furnish complete details for his fresh consideration. In view of the above, the appeal filed by the assessee is allowed for statistical purposes only.