JAYABALAN KUMARESAN,TIRUVANNAMALAI vs. ITO, WARD-1, TIRUVANNAMALAI

In the assessment order passed u/s. 147 r.w.s 144B of the Act, the A.O has made addition Rs. 22,64,000/- on account of cash received from the sale of gold and Rs. 35,54,200/- on account of cash received as a gift. Aggrieved by the additions, the assessee filed an appeal before the Ld. CIT(A). During the appellate proceedings, the Ld. CIT(A) issued four notices from 09.12.2024 to 07.01.2025.

However, there was no compliance from the assessee. Consequently, in the absence of any representation or submissions from the assessee, the Ld. CIT(A) passed an ex-parte order and confirmed the additions made by the A.O.

At the outset, the Ld. Authorized Representative (A.R) of the assessee has submitted that the Ld. CIT(A) has issued multiple notices in a short span of time and dismissed the appeal ex-parte and therefore, it is requested that, in the interests of justice, one more opportunity be provided to the assessee.

On the other hand, the Ld. Departmental Representative (DR), has relied on the orders of lower authorities.

We have heard the rival submissions, and perused the materials available on record. It is noted that the A.O has made addition of Rs.58,18,200/- on account of cash received from gold sales and on account of cash received as gift. It is further noted that the assessee did not appear before the Ld. CIT(A), resulting in the dismissal of the appeal without hearing. However, before us, the Ld. AR has contended that adequate opportunity was not granted by the Ld. CIT(A) to substantiate his case. In the interest of justice and considering principles of natural justice, we are of the view that the assessee should be given with another opportunity of hearing to substantiate his case before the Ld. CIT(A) subject to payment of costs of Rs.10,000/-. 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 set aside the order passed by the Ld. CIT(A) and remit the matter to his file to decide the issue afresh, after affording the assessee due opportunity of being heard, in accordance with law. We also direct the assessee to 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.