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Facts
The assessee filed an appeal for AY 2017-18 arising from an order confirming an addition of Rs.30,42,530/- on account of cash deposits. The addition was made by the AO u/s 143(3) and confirmed by the CIT(A) ex-parte due to non-compliance with notices.
Held
The Tribunal set aside the orders of the AO and CIT(A) and remitted the matter back to the CIT(A) for a decision on merits after providing the assessee with an opportunity of hearing.
Key Issues
Whether the CIT(A) was justified in passing an ex-parte order without adjudicating the issue on merits due to assessee's non-compliance with notices.
Sections Cited
143(3), 69A
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, ‘D’ BENCH: CHENNAI
Before: SHRI SS VISWANETHRA RAVI & 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 24.05.2024 in the matter of assessment framed by Ld. Assessing Officer [AO] u/s. 143(3) of the Income-tax Act, 1961 (hereinafter “the Act”) dated 12.12.2019.
There is a delay of 268 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 is an individual and doing business of manufacturing of rice and paddy and is commission agent. The assessee had filed his return of income on 29.01.2018 admitting total income of Rs.4,95,840/-. The A.O in the order passed u/s. 143(3) of the Act and made addition on cash deposits of Rs.30,42,530/-.
Aggrieved against the addition, the assessee filed an appeal before Ld. CIT(A). The Ld. CIT(A) passed order ex-parte without adjudicating the issue on merits as the assessee has not made compliance to the notices issued.
The Ld. Authorized Representative (A.R) of the assessee has submitted that the Ld. CIT(A) had passed order ex-parte without adjudicating the issue on merits therefore, one more opportunity be granted to the assessee to substantiate his case before the Ld. CIT(A).
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 of cash deposits amounting to Rs.30,42,530/- u/s. 69A of the Act, due to the non- compliance of the assessee, without adjudicating the issue on merits.
Accordingly, we set aside the orders passed by the A.O and the Ld. CIT(A) and remit the matter back to the file of the Ld. CIT(A) to decide the appeal on merits. The Ld. CIT(A) shall pass a reasoned order after providing due opportunity of hearing to the assessee, in accordance with law. We also direct the assessee to co-operate with the proceedings and appear before the Ld. CIT(A) on the date of hearing without fail. 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 26th day of June, 2025 at Chennai.