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Facts
The assessee deposited ₹.1,16,59,379/- in cash and other credit entries during the demonetization period (AY 2017-18) but failed to file a return of income. The Assessing Officer, after non-compliance to a Section 142(1) notice, treated the amount as unexplained money under Section 69A and completed assessment under Section 144. The Ld. CIT(A) dismissed the assessee's appeal due to non-compliance with hearing notices.
Held
The Tribunal noted that the assessee's assistance was crucial for the additions under Section 69A. Considering the interest of justice and the submissions, the Tribunal decided to remand the matter back to the Ld. CIT(A) for fresh consideration, affording the assessee one more opportunity to submit evidence. This opportunity is conditional on the payment of ₹.25,000/- to the State Legal Aid Authority.
Key Issues
Whether the Ld. CIT(A) was justified in confirming the addition made by the Assessing Officer under Section 69A and 115BBE due to assessee's non-compliance, or if the assessee should be granted another opportunity to substantiate their claim.
Sections Cited
69A, 115BBE, 142(1), 144
AI-generated summary — verify with the full judgment below
Before: Shri S.S. Viswanethra Ravi&
Year: 2017-18 Kasirajan Muthuraman, Vs. The Income Tax Officer, No. 1, Cuddappa Tiruttani, Ward 2, Tiruvallur 631 209. Tiruvallur. [PAN:CDWPM2506DE] (अपीलाथ�/Appellant) (��थ�/Respondent) अपीलाथ� की ओर से / Appellant by : Shri R. Subramanian, C.A. ��थ� की ओर से/Respondent by : Ms. V. Supraja, Addl. CIT सुनवाई की तारीख/ Date of hearing : 16.07.2025 घोषणा की तारीख /Date of Pronouncement : 18.07.2025 आदेश /O R D E R
PER S.S. VISWANETHRA RAVI, JUDICIAL MEMBER:
This appeal filed by the assessee is directed against the order dated 15.03.2025 passed by the ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre [NFAC], Delhi for the assessment year 2017-18.
The assessee raised 10 grounds of appeal amongst which, the only issue emanates for our consideration as to whether the ld. CIT(A) is justified in confirming the addition made by the Assessing Officer under section 69A r.w.s. 115BBE of the Income Tax Act, 1961 [“Act” in short] by passing exparte order.
We note that according to the Assessing Officer, the assessee had deposited cash and other credit entries totalling to ₹.1,16,59,379/- during demonetization period in his bank account and did not file return of income for AY 2017-18. Thus, the Assessing Officer issued notice under section 142(1) of the Act dated 13.02.2018 requiring the assessee to file return of income, but, however, the assessee did not comply with the same. Since the assessee could not file the return of income of any cogent explanation or documentary evidence towards source of cash deposits, etc., the Assessing Officer treated the entire cash deposits of ₹.1,16,59,379/- as unexplained money under section 69A of the Act and assessed income of the assessee and completed the assessment under section 144 of the Act dated 28.09.2019. On appeal, the ld. CIT(A) dismissed the appeal of the assessee since the assessee did not comply with the hearing notices or filed any documentary evidences in support of grounds of appeal.
The ld. AR Shri R. Subramanian,C.A. submits that non-compliance to the hearing notices issued by the ld. CIT(A) and the Assessing Officer is neither wilful nor deliberate but due to circumstances beyond assessee’s control. The ld. AR prayed that one more opportunity may be afforded to the assessee to furnish the details to substantiate his claim.
The ld. DR Ms. V. Supraja, Addl. CIT opposed the same and drew our attention to para 5 of the impugned order and argued that the ld. CIT(A) afforded ample opportunities to the assessee, but, it was not availed. She vehemently argued that costs may be imposed, in case this Tribunal affords an opportunity by remanding the matter to the file of the Assessing Officer.
Heard both the parties and perused the material on record. We note that the assessment was completed under section 144 of the Act dated 28.09.2019. On perusal of the impugned order, we note that there was no assistance from the assessee to the hearing notices issued by the ld. CIT(A). We find the assistance of assessee is necessary in terms of additions involves under section 69A of the Act. Taking into consideration of the submissions of the ld. AR and the ld. DR and in the interest of justice, we deem it proper to afford one more opportunity and remand the matter to the file of the ld. CIT(A) subject to the condition of payment of ₹.25,000/- in favour of the State Legal Aid Authority, Hon’ble Madras High Court within 30 days from the date of receipt of this order and the Assessing Officer shall satisfy the payment of cost and decide the issue afresh after considering the written submissions/documentary evidences as may be filed by the assessee to substantiate his claim. Thus, the grounds raised by the assessee are allowed for statistical purposes.
In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on 18th July, 2025 at Chennai.