What did the Tribunal hold?

The Tribunal held that the CIT(A)'s decision to dismiss the appeal ex parte for non-prosecution was unsustainable in law. The matter was remitted back to the CIT(A) for a fresh decision on merits after providing the assessee with an adequate opportunity of hearing.

The Assessing Officer (AO) completed the assessment under Section 144, treating bank deposits of Rs. 11,28,300 as unexplained. The CIT(A) dismissed the assessee's appeal ex parte for non-prosecution.

What were the issues?

Whether the CIT(A) erred in dismissing the appeal ex parte without affording an opportunity of hearing. Whether the assessment was bad in law due to the absence of a notice under Section 143(2).

Prem Singh Bhullar, Shivpuri vs ITO | ITAT Agra 2018

Income Tax Appellate Tribunal, AGRA (SMC

Before: SHRI A. D. JAIN

For Appellant: Shri Manuj Sharma, AR

For Respondent: Shri Waseem Arshad, Sr.DR

Hearing: 28.05.2018Pronounced: 09.07.2018

IN THE INCOME TAX APPELLATE TRIBUNAL AGRA (SMC) BENCH: AGRA

BEFORE SHRI A. D. JAIN, JUDICIAL MEMBER

I.T.A No. 460/Agra/2017 (ASSESSMENT YEAR-2008-09)

Shri Prem Singh Bhullar, Madhav Vs..ITO, Chowk, Shivpuri (M.P.) Shivpuri. PAN No.AJOPB7646J (Assessee) (Revenue)

Assessee by Shri Manuj Sharma, AR. Revenue by Shri Waseem Arshad, Sr.DR.

Date of Hearing 28.05.2018 Date of Pronouncement 09.07.2018

ORDER This is assessee’s appeal for A.Y. 2008-09, taking the following grounds: “1. That the learned CIT (Appeals) has erred on facts and in law while dismissing of the appeal of the appellant treating the same as barred by limitation, without allowing any opportunity the appeal decided exparte is against the principles of natural justice, after taking into consideration the facts of the case, no addition is liable to be sustained, the addition made by the AO sustained by the learned CIT (Appeals) is liable to be deleted.

That while dismissing of the appeal, the learned CIT (Appeals) has completely ignored the fact that no notice fixing of the appeal was served upon the assessee being the assessee changed his residence from the address

I.T.A No. 460/Agra/2017 2

mentioned in the memorandum of appeal on account of which no notice fixing the appeal was served upon the assessee, the appeal decided without allowing of the opportunity is not justified. Addition sustained on this score is liable to be deleted.

That the assessment completed by the AO is bad in law being no notice under Section 143(2) was served upon the assessee prior to completing of the assessment under section 144 of the Income Tax Act.

That the deposits in the bank account represent the receipts received to assessee from running of cable network Dish T.V. business and commission income. All the deposits made in the bank account are fully explained and are out of the business undertaken by the assessee of running of Dish T.V. or from the insurance. Taking into consideration the above, the amount deposited in the bank account as unexplained is not called for, addition made by the AO sustained by the learned CIT (Appeals) is liable to be deleted.

That the learned CIT (Appeals) while deciding of the appeal has not appreciated that the return in the case was duly filed, the statement of bank account was filed indicating that the deposits in the bank account represent the transactions either from the business of running of cable T.V. or related with the insurance business, taking into consideration the above, no addition is liable to

I.T.A No. 460/Agra/2017 3

sustained, addition made by the AO sustained by the learned CIT (Appeals) is liable to be deleted.”

The AO completed the assessment of the assessee u/s 144 of the IT Act

treating the deposits in the bank account, amounting to Rs.11,28,300/- as

unexplained. The ld. CIT(A)by virtue of the impugned order, has decided the

appeal ex parte qua the assessee, dismissing it for non prosecution. Heard. Since the ld. CIT(A) has dismissed the assessee’s appeal for non 3.

prosecution, which is unsustainable in law, the matter is remitted to the ld. CIT(A),

to be decided afresh on merits, in accordance with law, on affording due and

adequate opportunity of hearing to the assessee. All pleas available under the law

shall remain so available to the assessee. The assessee, no doubt, shall co-operate

in the fresh proceedings before the ld. CIT(A). Ordered accordingly.

In the result, for statistical purposes, the appeal is treated as allowed.

Order pronounced in the open court on 09/07/2018.

Sd/- (A.D. JAIN) JUDICIAL MEMBER *AKV* Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR

PREM SINGH BHULLAR,SHIVPURI vs. ITO, SHIVPURI

What did the Tribunal hold?

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