MURUGESAN KRISHNAKUMAR,KARUR vs. ITO, WARD-1,, KARUR

There is a delay of 102 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.

The assessee deposited cash of Rs. 67,90,000/- in his savings bank account maintained with UCO Bank but did not file a return of income for the relevant Assessment Year. Consequently, the A.O. passed an ex-parte assessment order, making an addition of Rs.67,90,000/- on account of unexplained cash deposits, as the assessee failed to furnish any details despite being given sufficient opportunities. Aggrieved by the assessment order, the assessee preferred an appeal before Ld. CIT(A). On appeal, the Ld. CIT(A) has issued several notices, but the assessee failed to make any submission to the notices issued and therefore, the Ld. CIT(A) also dismissed the appeal ex-parte.

The Ld. A.R has contended that sufficient opportunity was not provided to the assessee either before A.O or before Ld. CIT(A) and both the orders have been passed ex-pare and therefore, the case may be remitted back to the Ld. CIT(A) 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 order of the Ld. CIT(A), we find that the Ld. CIT(A) has confirmed the addition made by the A.O of cash deposits of Rs.67,90,000/- u/s. 69A of the Act, due to the non- compliance of the notices issued. The assessment order has also been passed ex-parte. In our considered opinion, and keeping in view the principles of natural justice, the assessee be provided with another opportunity of hearing to substantiate his case before the Ld. CIT(A) 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 Ld. CIT(A).

Accordingly, we remit the matter back to the file of the Ld. CIT(A) for denovo adjudication. We also direct the assessee to appear before the Ld. CIT(A) 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.