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Income Tax Appellate Tribunal, ‘C’ BENCH: CHENNAI
Before: SHRI GEORGE GEORGE K & SHRI JAGADISH
आदेश / O R D E R
PER JAGADISH, A.M : Aforesaid appeal filed by the assessee for Assessment Year (AY) 2016-17 arises out of the order of Learned Commissioner of Income Tax (Appeals)-18, Chennai [hereinafter “CIT(A)”] dated 29.02.2024 in the matter of assessment framed by Ld. Assessing Officer [AO] u/s. 143(3) r.w.s 153C of the Income-tax Act, 1961 (hereinafter “the Act”) on 31.12.2018.
Ld. CIT(A) in deciding the issue ex-parte and confirming the addition of Rs. 26.40 Crores.
The brief facts of the case are that a search and seizure operation was carried out in the premises of Shri C.P. Anbunathan, Karur on 22.04.2016, wherein material relating to cash receipts of Rs.26.40 Crores by assessee was found and seized. The A.O therefore, initiated proceedings u/s. 153C of the Act in the case of assessee and added cash received amounting to Rs.26.40 Crores as income from other sources u/s. 56(2)(ix) of the Act. Being aggrieved, the assessee filed appeal before Ld. CIT(A) on 27.01.2019. The Ld.
CIT(A) has issued five notices from 15.07.2019 to 18.10.2019, and assessee sought adjournments against each notice. Subsequently the Ld. CIT(A) has issued three notices during Covid period, which remain un-complied. The Ld. CIT(A) further issued notices on 09.02.2021, 26.11.2021 & 04.05.2023 and passed ex-parte order confirming the addition of Rs. 26.40 Crores.
The Ld. Authorized Representative (A.R) of the assessee, at the outset, has submitted the Ld. CIT(A) has passed ex-parte order and therefore in the interest of natural justice one more opportunity may be provided before Ld CIT(A). The Ld AR further submitted that the cases made are still pending before the Ld. CIT(A) therefore, the case may be set aside before Ld. CIT(A). The Ld. AR has submitted that the Ld. CIT(A) has issued five notices from 15.07.2019 to 18.10.2019 and the assessee has sought adjournment. Subsequently, three notices were issued during the Covid period. The Ld. CIT(A) after the Covid has issued two notices which was not received by the assessee and therefore, could not be complied. The Ld. AR has submitted that as the order of Ld. CIT(A) is ex-parte and the cases of other group concern are pending before Ld. CIT(A) , the matter may be sent back to Ld. CIT(A) and there is not prejudice cause to the Revenue.
The Ld. Departmental Representative (DR), relied on the orders of lower authorities and submitted that assessee has been non compliant.
We have heard the rival submissions, and perused the materials available on record. The A.O has made the addition of Rs. 26.40 Crores in the order passed u/s. 153C of the Act. The addition has been made on the basis of search conducted in the case of Shri C.P.
Anbunathan, Karur on 22.04.2016, where details of cash transaction pertaining to the assessee-company, were found and seized. It has 4 -: been stated that cash of Rs. 26.40 Crores has been given by Shri C.P.Anbunathan, Karur and the appeal proceedings in the case of C.P. Anbunathan and related concerns are pending with the Ld. CIT(A). On perusal of the order of the Ld. CIT(A), we find that the order has been passed by Ld. CIT(A) 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 being heard to substantiate his case before the Ld. CIT(A). Accordingly, we set aside the order passed by the Ld. CIT(A) and remit the matter back to the file of the Ld. CIT(A) to adjudicate this appeal afresh in accordance with law. We also direct the Assessee to appear before the Ld. CIT(A) on the date of hearing without fail. 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 27th January, 2025.