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Facts
The assessee appealed against an ex parte order passed by the CIT(A) which confirmed an addition of Rs. 1,24,76,500/- as undisclosed income under Section 68 of the Income Tax Act for Assessment Year 2011-12. The assessee's AR sought to set aside this order and remand the issue to the CIT(A) for fresh adjudication.
Held
Despite the assessee's prior non-appearance before the CIT(A), the tribunal, in the interest of natural justice, granted one more opportunity. The issue was restored to the CIT(A)'s file for fresh adjudication, conditional on the assessee paying a cost of Rs. 10,000/- to the Accountants' Library within sixty days. Non-payment of this cost would result in the CIT(A)'s order being confirmed.
Key Issues
Whether an ex parte order confirming an addition of undisclosed income under Section 68 by the CIT(A) should be set aside and remanded for fresh adjudication, considering the assessee's non-appearance and principles of natural justice.
Sections Cited
250, 68
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Income Tax Appellate Tribunal, “C” BENCH, KOLKATA
Before: SHRI GEORGE MATHAN & SHRI RAKESH MISHRA
Present for: Appellant by : Shri Manish Tiwari, AR Respondent by : Ms. Rama Choudhary, Sr. DR Date of Hearing : 03.03.2025 Date of Pronouncement : 03.03.2025 O R D E R Per Bench : This is an appeal filed by the assessee against the order of the Ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [hereinafter referred to as “the Ld. CIT(A)”] vide order no. ITBA/NFAC/S/250/2024-25/1066017444(1) dated 25.06.2024 passed u/s. 250 of the Income Tax Act, 1961 (hereinafter referred to as “the Act”) for AY 2011-12.
Shri Manish Tiwari, AR appeared on behalf of the assessee and Ms. Rama Choudhary, Sr. DR appeared on behalf of the revenue.
The Ld. AR of the assessee submitted that the order passed by the ld. CIT(A) is an ex parte order confirming the addition of Rs.1,24,76,500/- under the head income from other sources as undisclosed income u/s. 68 of the Act. Hence, the ld. AR prayed before the Bench to set aside the order
Since the assessee despite providing sufficient opportunities of hearing before the Ld. CIT(A) did not present himself in the appellate proceedings, keeping this in mind and also treating this attitude against the principles of natural justice, we are of the view, however, that in the interest of justice, the assessee should be granted one more opportunity. This being so, the issue in this appeal is restored to the file of the Ld. CIT(A) subject to the assessee paying a cost of Rs.10,000/- to the Accountants’ Library within sixty days from the date of this order and receipt of the same would be produced before the Ld. CIT(A). Should the assessee not pay the abovementioned cost of Rs. 10,000/- within the prescribed period of sixty days from the date of this order, the order of the Ld. CIT(A) shall stand confirmed.
In the result, the appeal of the assessee is allowed for statistical purpose subject to above directions.