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Facts
The assessee, a cooperative society, failed to file its income tax return. Based on information of significant cash withdrawals, the case was reopened under Section 148. The Assessing Officer (AO) proceeded ex-parte and made an addition for unexplained money. The CIT(A) dismissed the appeal ex-parte due to no response from the assessee.
Held
The Tribunal condoned the delay in filing the appeal and admitted it for adjudication. While acknowledging the submissions of the Revenue, the Tribunal, in the interest of natural justice, set aside the impugned order.
Key Issues
Whether the appeal filed by the assessee should be admitted after a significant delay, and whether the ex-parte assessment order should be set aside for a fresh hearing on merits.
Sections Cited
148, 69A
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, ‘D’ BENCH: CHENNAI
Before: SHRI MANU KUMAR GIRI & SHRI AMITABH SHUKLA
आदेश / O R D E R
PER MANU KUMAR GIRI, JM:
1. The captioned appeal filed by the assessee is directed against order of the Ld. Commissioner of Income Tax (Appeal)/NFAC, Delhi [‘CIT(A)’ in short] dated 13.01.2025 for Assessment Year 2019-20.
Delay of ‘88’ days condoned as stated in the petition supported by the affidavit. Appeal is admitted for adjudication.
The brief facts of the case are that the assessee is a cooperative society and had not filed its return of income for the year under consideration. Based on the information that the assessee had cash withdrawals amounting to Rs.2,75,19,000/- and it was a non-filer, the case was reopened. u/s 148 on 30.03.2023. The AO proceeded ex-parte as no compliance was made before the AO and made an addition of Rs.4,24,97,896/- on account of unexplained money u/s 69A of the Act.
The ld. CIT(A) dismissed the appeal ex-parte as there was no response to the notices issued for hearing and filing submission.
Aggrieved, assessee is in appeal before us.
Before us, the ld. Counsel for assessee submitted that the assessee may be given more chance to adduce evidence and submission. The ld.DR relied upon the order of the ld.CIT(A) and pleaded for the dismissal of the appeal.
Though we some extent concur with the submissions of Ld.DR, however, keeping in mind the natural justice, we are of the view that the assessee may be granted opportunity to file submissions and evidence before the AO. Accordingly, the impugned order is set aside and the appeal is restored back to the file of the AO for hearing on merits subject to cost of Rs.10,000/- (Rupees Ten Thousand) which shall be deposited by the assessee within ‘30’ days from the date of receipt of this order to ‘Tamil Nadu State Legal Services Authority’ at Hon’ble High Court of Madras. The proof of the same will be furnished by the Assessee before the AO whose shall proceed for hearing the denovo assessment on merits after affording proper opportunity of hearing to the assessee. The assessee is directed to substantiate its case with all evidence and documents, if any, forthwith without any fail, failing which AO shall be at liberty to proceed with the assessment proceedings on merits as per law.
Legal issues are open. The ld. AR of the asssessee also assured us that the assessee will prosecute the case diligently before the authorities.
In the result, appeal filed by the assessee is allowed for statistical purpose.
Order pronounced in open court on the 26th day of August, 2025, in Chennai.