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Facts
The assessee's appeal for AY 2013-14 arose from an ex-parte assessment order passed by the AO and an ex-parte order by the CIT(A). The CIT(A) had confirmed additions including cash deposits, agricultural income, TDS claim disallowance, and undisclosed income on credit card payment.
Held
The Tribunal, in the interest of natural justice, decided to set aside the ex-parte orders and remit the matter back to the AO for de novo adjudication, subject to the assessee paying costs and appearing before the AO with complete details.
Key Issues
Whether principles of natural justice warrant setting aside ex-parte orders for de novo adjudication, even when the assessee has not complied with notices.
Sections Cited
144, 147, 69A, 143(3)
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Income Tax Appellate Tribunal, ‘C’ BENCH: CHENNAI
Before: SHRI ABY T. VARKEY & SHRI JAGADISH
आदेश / O R D E R PER JAGADISH, A.M : Aforesaid appeal filed by the assessee for Assessment Year (AY) 2013-14 arises out of the order of Learned Commissioner of Income Tax, Appeal, Chennai-19 [hereinafter “CIT(A)”] dated 29.10.2024 in the matter of assessment framed by the Assessing Officer [AO] u/s. 144 r.w.s 147 of the Income-tax Act,1961 (hereinafter “the Act”) on 24.09.2021.
At the outset, the Ld. Authorized Representative submitted that the assessment order in this case has been passed ex-parte u/s 144 and Ld CIT(A) has also dismissed the appeal ex-parte, therefore one more opportunity be granted to the assessee before the A.O.
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 of Rs.17,60,000/- u/s. 69A of the Act, addition of Rs. 3,25,864/- agricultural income, disallowance of TDS claim of Rs. 4,52,233/-, and addition of Rs.9,34,000/- as undisclosed income on credit card payment, due to the non-compliance of the assessee. The assessment order has also been passed ex-parte. We are of the opinion that keeping in view the principles of natural justice, the assessee be provided with another opportunity of hearing to substantiate his case before the A.O 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 A.O. 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 A.O for denovo adjudication. We also direct the assessee to appear before the A.O on the date of hearing without fail and furnish complete details for fresh consideration. 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 28th March, 2025.