SUBRAMANIAN KARUPPANNAN,CHENNAI vs. ITO, NCW-22(4), TAMBARAM

The assessee has deposited cash of Rs.1,49,93,805/- in his bank accounts, but has not filed return of income for the Relevant Assessment Year. Consequently, the A.O reopened assessment by issuing notice u/s 148 of the Act. However, the assessee neither filled return of income in response to notices nor complied with notices issued during assessment proceedings. As a result, the A.O passed assessment order u/s. 147 r.w.s 144 r/w.s 144B of the Act, making an addition u/s. 69A of the Act for unexplained money, thereby assessing total income of Rs.1,49,93,805/-. Aggrieved, the assessee preferred an appeal before Ld. CIT(A) with delay of 112 days. The Ld. CIT(A)

dismissed the appeal by not condoning the delay in filling appeal and upholding the order of the A.O.

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. On perusal of the orders of A.O as well as Ld. CIT(A), we find that both the orders have been passed ex-parte for the non-compliance by the assessee. The Ld. A.R has submitted that the Ld. CIT(A) has not condoned the delay in filling appeal of 112 days despite the doctor certificate enclosed and dismissed the appeal ex parte, 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.15,000/-. 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.