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Facts
The assessee, an agricultural cooperative society, appealed against an ex-parte order from the CIT(A) for AY 2018-19, which confirmed additions made by the AO totaling Rs. 9,74,820 for unexplained investments in Term Deposit Receipts and savings account balances. The assessee argued that the CIT(A) passed the order without providing a proper opportunity to be heard, as its CEO was bedridden and unable to respond to notices.
Held
The Tribunal acknowledged the assessee's valid reason for non-compliance and the ex-parte nature of the CIT(A)'s order. Emphasizing principles of natural justice, the Tribunal set aside the CIT(A)'s order and remanded the matter back to the CIT(A) for fresh adjudication on merits, ensuring the assessee receives another opportunity for a hearing.
Key Issues
Whether the CIT(A) was justified in passing an ex-parte order when the assessee demonstrated a sufficient cause for non-compliance, and whether the additions made by the AO for unexplained investments were correctly upheld without due process.
Sections Cited
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Income Tax Appellate Tribunal, Hyderabad ‘ DB-A ‘ Bench, Hyderabad
Before: Shri Vijay Pal Rao, Vice-Shri Madhusudan Sawdia
Per Vijay Pal Rao, Vice President
This appeal filed by the assessee is directed against the order dated 8/8/2024 of the learned CIT (A)-NFAC Delhi, for the A.Y.2018-19.
There is a delay of 4 days in filing the present appeal. The assessee has filed a petition for condonation of delay which is also supported by an affidavit. None has appeared on behalf of the Page 1 of 6 of 2024 Venkatagiri Primary Agr.Coop.Society Ltd assessee when this appeal was called for hearing. We have perused the affidavit filed by the assessee explaining the cause of delay. The learned DR has no serious objection if the delay of 4 days in filing the appeal is condoned. Accordingly, having considered the reasons explained by the Assessee Cooperative Society in the affidavit, we are satisfied that the assessee was having a sufficient cause for the delay of 4 days in filing the present appeal and consequently, the same is condoned.
The assessee has raised the following grounds of appeal:
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At the outset, we note that in Ground No.6, the assessee has explained the reasons for non-compliance of the notice issued by the learned CIT (A) NFAC as the CEO of the Assessee Society was bedridden and could not take the steps for the compliance. We further note that the learned DR has also accepted the fact that the learned CIT (A) NFAC has passed the impugned order ex-parte when there was no response to the notice issued by the learned CIT (A) NFAC.
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Having considered the grounds raised by the assessee as well as the relevant material available on record, at the outset we note that the learned CIT (A) NFAC has dismissed the appeal of the assessee for non-prosecution as the assessee did not respond to the notice issued by the learned CIT (A). The assessee has explained the reasons for non-compliance and therefore, in the facts and circumstances of the case and in the interest of justice, we grant one more opportunity to the assessee to present its case before the learned CIT (A) NFAC. Accordingly, the impugned order of the learned CIT (A) NFAC is set aside and the matter is remanded to the record of the learned CIT (A) for fresh adjudication on merits after giving one more opportunity of hearing to the assessee.
In the result, appeal filed by the assessee is allowed for statistical purposes.