PANEERSELVAM SUBRAMANIAM,CHENNAI vs. ITO, NCW-5(1),, CHENNAI

When the appeal was taken up for hearing, none appeared on behalf of the assessee. Accordingly, the hearing was proceeded with the able assistance of Ld. D.R, Mr. M.P. Guruprasad, Addl. CIT.

The A.O has reopened the assessment for the reason that assessee has purchased immovable property of Rs. 52,50,000/-, but had not filed return of income. The A.O in the ex-parte order passed u/s. 147/144 of the Act has assessed income at Rs.52,50,000/- by making addition on account of unexplained investment in the said property as the assessee has not responded to the notices issued.

CIT(A). The Ld. CIT(A) dismissed the appeal as not maintainable for the reason that the assessee has not filed the return of income and not paid an amount of advance tax that was payable, as required u/s. 249(4) of the Act. The assessee is in appeal against the order as huge tax burden has been fastened by the ex-parte order passed by the A.O.

The Ld. Departmental Representative (DR), has stated that assessee has been negligent before the A.O and has not paid the advance tax , therefore the Ld. CIT(A) order be confirmed.

We have perused the materials available on record and find that assessment order has been ex-parte making addition of Rs.52,50,000/- and the Ld. CIT(A) has not adjudicated the appeal and dismissed the appeal as not maintainable. We are of opinion that assessee should be provided an opportunity of being heard in the interest of justice. Accordingly, we set aside the order passed by the Ld. CIT(A) and remit the matter to his file with a direction to provide proper opportunity of being heard. We also direct the assessee to make an application as per Proviso to Section 249(4) of the Act and comply with the notices being issued by the Ld. CIT(A). 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.