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Facts
The assessee, an individual, did not file a return of income. The Assessing Officer initiated proceedings under Section 147 based on information about a large cash deposit and interest income. The assessment was completed ex-parte after the assessee remained absent before the CIT(A).
Held
The Tribunal set aside the ex-parte order of the CIT(A) and remanded the matter back for fresh adjudication. The assessee was directed to cooperate fully and provide necessary documentation and explanations.
Key Issues
Whether the appeal decided ex-parte by the CIT(A) without providing adequate opportunity to the assessee should be set aside and remanded for fresh consideration.
Sections Cited
147, 148, 142(1), 144B
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Income Tax Appellate Tribunal, PUNE BENCH “B”, PUNE
Before: SHRI MANISH BORAD & SHRI VINAY BHAMORE
Assessment Year : 2013-14 Ravikant Siddhanna Vs. Income Tax Department, Gandewadi, National Faceless A/p. Saglare, Tal. Miraj, Assessment Centre, Dist.- Sangli. Delhi. PAN : AYKPG4789Q Appellant Respondent Assessee by : None Revenue by : Shri A. D. Kulkarni Date of hearing : 03.04.2025 Date of pronouncement : 26.05.2025 आदेश / ORDER
PER VINAY BHAMORE, JM:
This appeal filed by the assessee is directed against the order dated 27.09.2024 passed by Ld. CIT(A)/NFAC for the assessment year 2013-14.
The appellant has raised the following grounds of appeal :-
1. On the facts and in the circumstances of the case and in law the lower authorities have erred in dismissing the appeal ex parte without giving proper opportunity of hearing and the act being in violation of principle of natural justice, it is prayed that appeal may kindly be restored back to lower authorities (A.O.) for re adjudication/reconsideration.
2. Learned CIT (A) has erred in fact and in law and in the circumstances of the case confirming addition made by A.O. of Rs.4,73,39,080/- despite the fact that the cash deposit is sale proceeds of petrol pump run by uncle of the appellant and account of the appellant is used by him for his business and all the cash deposit out of sale proceeds of the petrol pump are properly recorded in the books of account of uncle of the appellant.
Appellant craves to leave, add / alter or amend any other grounds of appeal
.”
3. Facts of the case, in brief, are that the assessee is an individual and has not furnished his return of income for the period under consideration. On the basis of information available with the Department that the assessee has deposited an amount of Rs.4,73,39,080/- in his bank account and bank has also deducted TDS on interest income, however the assessee has not furnished his return of income, accordingly the proceedings u/s 147 of the IT Act were initiated after obtaining prior approval of the competent authority and notices u/s 148 and 142(1) were issued and served upon the assessee respectively. Not being satisfied with the reply of the assessee, the Assessing Officer completed the assessment u/s 147 r.w.s. 144B of the IT Act determining total income at Rs.4,76,38,450/- as against no return filed by the assessee. The above assessed income includes addition on account of cash deposit of Rs.4,73,39,080/- in bank account and interest income of Rs.2,99,370/-.
4. Since the assessee remained absent, Ld. CIT(A)/NFAC dismissed the appeal filed by the assessee. It is this order against which the assessee is in appeal before the Tribunal.
5. When the appeal was called for hearing neither anybody attended nor any application for adjournment was filed, we therefore proceed to decide the appeal after hearing Ld. DR and on the basis of material available on record.
We have heard Ld. DR and perused the material available on record. We find that in first ground of appeal the assessee has challenged the ex-parte order passed by Ld. CIT(A)/NFAC. In this regard, we find that Ld. CIT(A)/NFAC has issued number of notices of hearing to the assessee but the assessee remained absent & did not furnished any reply. However, from the perusal of material available on record, we find that it is the contention of the assessee that the turnover appearing in his bank account pertains to petrol pump receipts and the petrol pump business was carried on by his relative who has already disclosed the impugned turnover in his audit reports and also furnished return of income wherein the income arising from this turnover has already been shown. Considering the totality of the facts of the case and in the interest of justice and without going into merits of the case, we deem it appropriate to set-aside the ex-parte order passed by Ld. CIT(A)/NFAC and remand the matter back to his file with a direction to decide the appeal afresh as per fact and law after providing reasonable opportunity of hearing to the assessee. The