SUDHAKAR,KRISHNAGIRI vs. INCOME TAX OFFICER WARD - 1 , KRISHNAGIRI

Brief facts of the case are that the assessee instituted appeal before the ld.CIT(A) against the income assessed u/s 144 of the Act wherein AO determined the total income at Rs.39,80,566/- being deposits/credits including cash deposits into the bank account u/s 69 of the Act. However, the ld. CIT(A) uphold the order of AO and dismissed the appeal on the ground that the assessee has neither responded to the hearing notices nor filed any evidence to support the grounds raised in the appeal. Aggrieved, assessee is in appeal before us.

Before the ld. Counsel for assessee submitted that the assessee’s Chartered Accountant had failed to inform the proceedings of the case on time-to-time basis. He further submits that the assessee due to his physically severe disability was not able to prosecute the appeal before the ld. CIT(A) and AO. 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 Mr. Bipin C.N., CIT however, keeping in mind the reasons furnished and substantial justice, grant one more opportunity to the assesee to prosecute the appeal on merits. Accordingly, the impugned order is set aside and the appeal is restored back to the file of Ld. CIT(A) for hearing on merits. Needless to say, that the ld.CIT(A) will follow the principle of natural justice and grant 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 Page - 2 - of 3 Ld.CIT(A) shall be at liberty to proceed with the appeal proceedings on merits as per law.

In the result, appeal filed by the assessee is allowed for statistical purpose.