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Facts
The assessee failed to comply with statutory notices due to personal difficulties, leading to ex-parte orders from the AO and CIT(A). The assessee sought a final opportunity to present evidence regarding cash deposits in their bank accounts.
Held
The Tribunal held that the matter concerning the sources of unexplained cash deposits was not objectively analyzed by the lower authorities. Therefore, the case was remitted back to the AO for de novo adjudication, granting the assessee one last opportunity to present evidence.
Key Issues
Whether the lower authorities had adequately examined the sources of cash deposits, and if a final opportunity should be granted to the assessee to present evidence.
Sections Cited
147, 148
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Income Tax Appellate Tribunal, ‘D’ BENCH: CHENNAI
Before: SHRI ABY T VARKEY & SHRI AMITABH SHUKLA
Assessment Years: 2018-19 Kumaravel Nesamurugan, Income Tax Officer, No.24, College Road, Ward-1, Kilperumbakkam S.O, Villupuram Viluppuram, Tamil Nadu 605 602. [PAN: APRPN1956J] (अपीलार्थी/Appellant) (प्रत्यर्थी/Respondent) अपीलार्थी की ओर से/ Assessee by : Mr.S.Sridhar, Advocate(Erode), प्रत्यर्थी की ओर से /Revenue by : Ms.Ann Mary Baby, CIT सुनवाई की तारीख/Date of Hearing : 04.06.2025 घोषणा की तारीख /Date of Pronouncement : .06.2025 आदेश / O R D E R PER AMITABH SHUKLA, A.M :
This appeal is filed by the assessee against the order bearing DIN & Order No.ITBA / NFAC / S / 250 / 2024-25 / 1072585047(1) dated 27.01.2025 of the Learned Commissioner of Income Tax [herein after “CIT(A), National Faceless Appeal Center[NFAC], Delhi, for the assessment year 2018-19. The reference to the word “Act” in this order hereinafter shall mean the Income Tax Act, 1961 as amended from time to time.
2.0 At the outset the Ld.Counsel for the assessee submitted that admittedly, owing to compelling personal difficulties, it could not make timely compliance to the statutory notices issued by the Ld.AO as well as the Ld.CIT(A) as a result of which ex-parte orders were passed by the twin authorities. It was accordingly requested that the assessee has all the details and evidences in its possession to prove its bona-fides before the Ld.AO and that one last opportunity be kindly be granted. The Ld.Counsel for the assessee has given his personal assurance of compliance to the statutory notices to be now issued by lower authorities. 3.0 Per contra, the Ld.DR relied upon the order of lower authorities. It was argued that the assessee was given sufficient opportunities by the lower authorities to explain the sources of cash deposits in its bank accounts of Rs.15,86,26,258/- qua proceedings u/s 147 / 148 and therefore no leniency deserves to be given to the assessee. 4.0 We have heard rival submissions in the light of material available on records. The non -compliance by the appellant assessee is evident from the order of lower authorities. The Ld.AR has personally assured full compliance now. We are conscious that no litigant benefits by not prosecuting its case. Be that as it may be, we are of the view that the matter concerning sources of unexplained cash deposits in the bank account of the assessee have not been objectively and comprehensively analyzed by the lower authorities. We are of the view that ends of justice Page - 2 - of 4 would be met if the assessee is given one last opportunity to present its case and file supporting evidences before the Ld.AO. The decision to remit it back to the Ld. AO is taken in view of the fact that an Assessing Officer is the fulcrum of assessment proceedings. He possess the first right and responsibilities to examine facts of a case before arriving at his decision qua determination of taxable income in a particular case. Without prejudice it has also been noted that in this case the Ld. AO did not have adequate opportunities to examine the varied facts seminal therein. We have noted with respectful deference the decision of Hon’ble Apex Court in the case of TIN box 249 ITR 216 on the subject matter. Accordingly, the issue of sources of cash deposits received by the assessee in its bank accounts amounting to Rs.15,86,26,258/- upon which even amount of addition was made stands remitted back to the Ld. AO for fresh adjudication de novo by passing a speaking order. To the extent the order of lower authorities on this issue stands set aside. The Ld. AO shall give opportunities of being heard to the assesse and it shall be bounden upon the assesse to comply with the notices issued by the Ld. AO. Any non-compliance on the part of the assesse can be adversely viewed. The assessee is at liberty to produce all the evidences deemed relevant in support of its claims before the Ld. AO during the readjudication proceedings. Accordingly, the grounds of appeal raised by the assessee are therefore allowed for statistical purposes. Page - 3 - of 4. Order pronounced on , June-2025 at Chennai.