AYYANDURAI SELVAM,SALEM vs. ITO, WARD-1(8), SALEM

The assessee is an individual, dealing in broiler chickens. The assessee has deposited cash of Rs.33,13,160/- in his saving bank account maintained with Axis Bank in Specified Bank Notes (SBNs), but has not filed return of income for the relevant Assessment Year.

The AO issued notices u/s 142(1) of the Act calling for return of income. However, the assessee neither filled return of income in response to the notices nor complied with notices issued during assessment proceeding. As a result, the A.O passed assessment order u/s.144 of the Act, making addition of cash deposit of Rs.33,13,160/- and estimating business income at Rs.20,43,371/-.

Aggrieved, the assessee preferred an appeal before Ld. CIT(A) with delay in filling appeal of 66 days. However, the Ld. CIT(A) did not condone the delay and dismissed the appeal ex-parte .

The Ld. A.R has contended that sufficient opportunity was not provided to the assessee either before A.O or before Ld. CIT(A) and both the orders have been passed ex-pare and therefore, the case may be remitted back to the A.O for fresh consideration in interest of justice.

The Ld. Departmental Representative has relied on the orders of the authorities below.

We have heard the rival submissions, and perused the materials available on record. We find that assessment order has been passed Ex- parte and Ld CIT(A) has not admitted the appeal for delay of 66 days in filling appeal. The Ld. A.R has submitted that the Ld. CIT(A) has not decided the issue on merits, therefore the case may be remanded back to the A.O for adjudication on merits. 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 to adjudicate this appeal afresh in accordance with law. We also direct the assessee to appear before the A.O on the date of hearing without fail and furnish complete details for his 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.