CHELLADURAI NADAR VELSAMY,TIRUNELVELI vs. INCOME TAX OFFICER, WARD -4 , TIRUNEVELI

There is a delay of 56 days in filing the appeal by the assessee. The assessee has filed condonation petition/affidavit stating the reasons for delay in filing the appeal. We have considered the petition/affidavit of delay in filing the appeal and satisfied that there was sufficient cause for not filing the appeal within the prescribed time limit. Hence, the delay is hereby condoned.

The assessee has made cash transaction of Rs.1,09,77,600/- in his bank account, 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. In response to notice, the assessee filed return of income declaring total income of Rs. 90,600/-. However, assessee did not respond to notices issued and therefore, the A.O passed assessment order u/s. 147 r.w.s 144 r/w.s 144B of the Act, making an addition of cash deposit of Rs.3,20,000/- and cash withdrawal of Rs.1,06,57,500/-. Aggrieved, the assessee preferred an appeal before Ld. CIT(A). However, the Ld. CIT(A) confirmed the addition, ex parte dismissing the appeal. :- 3 -:

The Ld. Counsel for the assessee prayed for setting aside the order of the Assessing Officer for re-adjudication, as the order passed by A.O and Ld CIT(A) are ex parte .

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 the A.O as well as Ld. CIT(A) have passed the orders 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 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. :- 4 -:

In the result, the appeal filed by the assessee is allowed for statistical purposes.