Loading judgment…
Facts
The appeal by the assessee for AY 2017-18 arose from an order of the CIT(A) which confirmed additions made by the AO for cash deposits during demonetization and estimated business income, due to non-compliance and ex-parte assessment. There was a delay of 495 days in filing the appeal, which was condoned.
Held
The Tribunal found that the assessment order and the CIT(A) order were passed ex-parte. In the interest of natural justice, the assessee was granted another opportunity to present their case before the AO, subject to payment of costs and furnishing of details.
Key Issues
Whether the assessee should be granted another opportunity for fresh adjudication, given that the assessment and appellate orders were passed ex-parte, and the condonation of delay.
Sections Cited
144, 69A, 147, 148, 143(3)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, ‘B’ BENCH: CHENNAI
Before: SHRI MANU KUMAR GIRI & 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 (NFAC), Delhi [hereinafter “CIT(A)”] dated 25.10.2023 in the matter of assessment framed by the Assessing Officer [AO] u/s. 144 of the Income-tax Act,1961 (hereinafter “the Act”) on 12.12.2019.
There is a delay of 495 days in filing the appeal by the assessee.
The assessee has filed condonation petition/affidavit 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.
At the outset, the Ld. Authorized Representative has submitted that the assessment order in this case has been passed ex-parte u/s 144 and the Ld CIT(A) has also dismissed the appeal ex-parte, therefore one more opportunity be granted to the assessee before the A.O.
On the other hand, the Ld. Departmental Representative (DR), relied on the orders of lower authorities and submitted that the orders were passed ex-parte as the assessee has been non compliance to the notices issued.
We have heard the rival submissions, and perused the materials available on record. On perusal of the order of the Ld. CIT(A), we find that the Ld. CIT(A) has confirmed the addition made by A.O of cash deposits during demonetization period amounting to Rs.28,07,892/- u/s. 69A of the Act, and estimated business income @ 3.4% of the credits in the bank account, due to the non-compliance of the assessee. The assessment order has also been passed ex-parte. 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 subject to payment of costs of Rs.5,000/-. The same shall be paid by the assessee to Tamil Nadu State Legal Services Authority at Hon’ble High Court of Madras within a period of one month from the date of receipt of this order and produce the receipt before the A.O. Accordingly, we set aside both the orders passed by the A.O and the Ld. CIT(A) and remit the matter back to the file of the A.O for denovo adjudication. We also direct the assessee to appear before the A.O on the date of hearing without fail and furnish complete details for fresh consideration. 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.
Order pronounced on 24th day of July, 2025 at Chennai.