KANDHASAMY KOWSALAI,,NAMAKKAL vs. ITO, WARD-2,, NAMAKKAL

This appeal at the instance of the assessee is directed against CIT(A) - NFAC order dated 30.10.2024, passed under section 250 of the Income Tax Act, 1961 (hereinafter called ‘the Act’). The relevant Assessment Year is 2012-13.

At the very outset, we notice that the appeal of the assessee has been dismissed ex-parte qua assessee. During assessment proceedings, the AO issued show cause notice dated 23.09.2021 requiring the assessee to submit reply on or before 26.09.2021 and the same was received by the assessee only on 27.09.2021. However, the AO completed the assessment on 29.09.2021 u/s.144 r.w.s. 147 by making an addition of Rs.29,50,000/- without providing sufficient opportunity to substantiate the claim of the assessee. On appeal, the position remained the same before the First Appellate Authority. Even though, the assessee sought for time vide his application dated 29.10.2024 for a period of two weeks before the CIT(A), without taking note of adjournment petition filed by the assessee, the assessment was confirmed, against which the assessee is in further appeal before us.

The Ld.AR for the assessee submitted that considering the old age of the assessee, one more opportunity may be provided to the assessee to file necessary documents by remitting the matter back to the files of CIT(A).

The ld.DR supported the order of the CIT(A).

We have heard rival submissions and perused the materials on record. The Office of the First Appellate Authority had issued five hearing notices and since there was no response from the assessee to the notices issued, the CIT(A) passed ex-parte order. It is the claim of the ld.AR that though the assessee sought for time vide his application dated 29.10.2024 for a period of two weeks before the CIT(A), without taking note of adjournment petition filed by the assessee, the assessment was confirmed. In the interest of justice and equity, we are of the view that assessee ought to be provided with one more opportunity to represent his case and accordingly the issues raised in this appeal are restored to the files of the AO. [since the assessment order was completed u/s.144 of the Act]. The assessee is directed to co-operate with the Revenue and shall not seek unnecessary adjournment. It is ordered accordingly.

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