GANESH MAHATO,DURGAPUR, SOUTH PARGANAS vs. ASSISTANT COMMISSION OF INCOME TAX CIRCLE 26(1), KOLKATA

This appeal by the assessee is directed against the order dated 01.12.2023 passed by the NFAC [in short CIT(A)] under section 250 of the Income-tax Act, 1961.

Brief facts of the case are that the assessee filed return of income declaring total income of Rs.3,76,470/-. The case was selected for limited scrutiny. Notices under Sections 143(2) and 142(1) were issued but she assessee remained non-compliant. The Assessing Officer observed that total deposits in the assessee's bank accounts With Bank during the period April 2016 to March 2017 amounted to Rs.2,00,80,900, whereas the assessee had shown only Rs.90,20,200 as sales. The excess deposit of Rs.1,10,60,700 was treated as unexplained money under Section 69A and added to the income of the assessee.

Aggrieved, the assessee filed appeal before the ld CIT(A), but again failed to respond to the notices or make any submission. The CIT(A) dismissed the appeal ex parte, upholding the assessment order.

The assessee is in appeal before us and has contended that the orders were passed without proper representation, and an opportunity be given to present its case before the CIT(A).

The learned Departmental Representative strongly objected to the request, submitting that the assessee is a habitual defaulter who failed to avail multiple opportunities at both stages of proceedings.

We have heard both parties and perused the record. It is undisputed that the assessee failed to comply with statutory notices and no representation was made either before the Assessing Officer or before the ld. CIT(A). However, considering the nature of addition and in the interest of natural justice, we deem it appropriate to grant one final opportunity to the assessee. However, we also take note of the consistent non-cooperative conduct of the assessee, and accordingly, we direct that a cost of Rs.10,000 shall be imposed upon the assessee. The said cost shall be deposited in the government account immediately receipt of this order, failing which the appeal shall be treated as dismissed in limine. Subject to the above, the matter is restored to the file of the ld. CIT(A) for fresh adjudication, after giving reasonable opportunity of being heard to the assessee. The assessee is also directed to comply with all notices issued and assist in disposal of the appeal without seeking undue adjournments.