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Facts
The assessee, an individual and a non-filer, made cash deposits of Rs. 1,48,69,442/-. Despite multiple notices, the assessee did not respond, leading to an addition of the full amount. The assessee's appeal before the CIT(A) was dismissed ex-parte.
Held
The Tribunal acknowledged the assessee's submission of not receiving notices and the importance of natural justice. Therefore, the impugned order was set aside, and the appeal was restored to the AO for denovo assessment with an opportunity for the assessee to present evidence.
Key Issues
Whether the assessee was denied an opportunity to be heard due to non-receipt of notices, and if a denovo assessment is warranted on principles of natural justice.
Sections Cited
147, 144, 144B, 69A, 115BBE
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Income Tax Appellate Tribunal, ‘C’ BENCH, CHENNAI
Before: HON’BLE SHRI MANOJ KUMAR AGGARWAL & HON’BLE SHRI MANU KUMAR GIRI
(िनधा�रणवष� / Assessment Year: 2018-2019) Ahamed Syedmoulan Habeeb Vs. The Income Tax Officer, Mohamed, Non Corporate Ward 3(1) 286A, Annaji Roa Road, Coimbatore Mettupalayam HO Coimbatore 641 301. [PAN: ANSPH 2395C] (अपीलाथ�/Appellant) (��यथ�/Respondent) अपीलाथ� क� ओर से/ Appellant by : Shri. Girish Kumar, Advocate ��यथ� क� ओर से /Respondent by : Ms. V. Aswathy, JCIT. सुनवाई क� तार�ख/Date of Hearing : 25.02.2025 घोषणा क� तार�ख /Date of Pronouncement : 27.02.2025 आदेश / O R D E R PER MANU KUMAR GIRI (Judicial Member)
This appeal by the assessee is arising out of the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi in order No.ITBA/NFAC/S/250/2024-25/1071202957(1) dated 13.12.2024. The assessment was framed by the Assessment Unit, Income Tax Department, for the assessment year 2018-19 u/s.147 r.w.s.144 r.w.s144B of the Income Tax Act, 1961 (hereinafter the ‘Act’), vide order dated 15.02.2024.
Brief facts of the case are that the appellant is an individual and is a non-filer. The return of income for the year under consideration has also not been filed by the assessee. The Ld. Assessing Officer got information that assessee has made total cash deposits to the tune of Rs.1,48,69,442/-. The ld. AO issued seven notices, however, there was no response from the assessee. Hence, the ld. AO made an addition of Rs.1,48,69,442/- u/s.69A r.w.s.115BBE of the Act. Assessee challenged the order of assessment before the ld.CIT(A) who proceeded ex-parte and dismissed the appeal on merits. Aggrieved, assessee is in appeal before us.
Before us, the ld. Counsel for assessee submitted that the assessee has inadvertently not received the notices issued by the AO and the ld.CIT(A) hence, asessee failed to avail opportunity to file evidence and documents to substantiate his explanation regarding deposits. The ld.DR stated that the assessee is habitual defaulter in appearing before the appellate authority hence no lenient view is to be taken in this case and prayed for dismissal of appeal.
Though we concur with the submissions of Ld. Sr. DR however, keeping in mind the principle of natural justice and grant another opportunity of hearing to the assessee. We also find that assessee has not represented before the ld.CIT(A) despite notices. Accordingly, the impugned order is set aside and the appeal is restored back to the file of Ld. AO for denovo assessment. The Ld.AO shall proceed for denovo assessment after affording proper opportunity of hearing to the assessee. The assessee is directed to substantiate its case with all evidence, confirmations and documents, if any, forthwith without any fail, failing which Ld. AO shall be at liberty to proceed with the assessment proceedings on merits as per law. We make it clear that all the issues are kept open before the ld.AO. 5. In the result, appeal filed by the assessee is allowed for statistical purpose. Order pronounced in the open court on 27th February, 2025 at Chennai