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Facts
The assessee's appeal for AY 2017-18 was filed with a delay of 257 days. The assessee had deposited cash of Rs. 9,15,000/- during demonetization, but failed to provide satisfactory explanations to the AO. Consequently, the AO passed an ex-parte assessment order.
Held
The Tribunal found that both the AO and CIT(A) orders were passed ex-parte due to the assessee's non-compliance. In the interest of natural justice, the assessee was granted another opportunity to present their case. The orders of the AO and CIT(A) were set aside, and the matter was remitted back to the AO for fresh adjudication.
Key Issues
Whether the ex-parte orders passed by the AO and CIT(A) were justified, and if natural justice principles warrant another opportunity for the assessee.
Sections Cited
144
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, ‘B’ BENCH: CHENNAI
Before: SHRI MANU KUMAR GIRI & SHRI JAGADISH
आदेश / O R D E R
PER JAGADISH, A.M : Aforesaid appeal filed by the assessee for Assessment Year (AY) 2017-18 arises out of the order of Learned Commissioner of Income Tax, National Faceless Appeal Centre (NFAC), Delhi [hereinafter “CIT(A)”] dated 26.12.2024 in the matter of assessment framed by the Assessing Officer [AO] u/s. 144 of the Income-tax Act,1961 (hereinafter “the Act”) on 07.12.2019.
There is a delay of 257 days in filing the appeal by the assessee.
The assessee has filed condonation petition stating the reasons for delay in filing the appeal as under:
“That delay in filing the appeal is because of diagnose of cancer of my mother and subsequently in her treatment, on the other hand my elder brother has also expired during Covid, which made me disturbed and have to take care of my mother treatment, making me unfit to apply my mind on filing of the appeal. The accountant who was handling my case has also left me who was aware of the appeal and have never brought to my notice, which made me unaware of the hearing proceedings, subsequently on myself coming to terms have come across the CIT(A) order which was time bared.”
We have considered the reasons for the delay in filing the appeal and are satisfied that there was sufficient cause for not filing the appeal within the prescribed time limit. Accordingly, the delay is condoned.
The assessee has filed his return of income on 23.03.2018 by declaring total income of Rs.4,38,550/- for A.Y 2017-18. The case was selected for scrutiny under CASS. The A.O has observed that the assessee had deposited cash of Rs. 9,15,000/- during demonetization period. The A.O has provided several opportunities for the assessee to explain the source of these cash deposits, but the assessee failed to submit the required information. Accordingly, the A.O. passed an ex- parte order u/s. 144 of the Act. Aggrieved, the assessee preferred an appeal before Ld. CIT(A). On appeal, the Ld. CIT(A) has issued various notices, but there was no compliances to the notices and therefore, the Ld. CIT(A) also dismissed the appeal ex-parte.
The Ld. Authorized Representative (A.R) of the assessee has submitted that assessment order as well CIT(A) orders have been passed ex party and sufficient opportunity was not provided to the assessee therefore, the case may be remitted back to the A.O for fresh consideration in the 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. 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.
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.
Order pronounced on 29th January, 2025.