DHIRUBHAI RAJABHAI KOLADIYA,AHMEDABAD vs. THE INCOME TAX OFFICER, WARD-6(1)(4), AHMEDABAD

This is an appeal filed against the order dated 15-03- 2024 passed by National Faceless Appeal Centre, Delhi for assessment year 2013-14.

The grounds of appeal are as under:- “(1) That, on facts, and in law, the Learned CIT(A) has grievously erred in not providing reasonable and sufficient opportunity of hearing and in deciding the appeal by an ex-parte order, and in deciding the appeal u/s 154 of the Act, without waiting for the outcome of appeal filed against order u/s 143(3) of the Act.. (2) That on facts and in law the Learned NFAC-CITIAL has grievously erred in confirming the addition of Rs 52,39,850/- in Dhirubhai Rajabhai Koladiya, A.Y. 2017-08 respect of Opening balance of Cash Book made by a rectification order u/s 154 of the Act. (3) That on facts and in law the learned NFAC-CITIA) has grievously erred in assessing the income as per order u/s 143 (3) of the Act and beginning the computation of income at Rs.42,82,390/- which includes addition of Rs 35,00,000/- in respect of cash deposited in appellant's bank account. (4) That on facts, and in law, the learned NFAC-CITIA) has grievously erred in confirming the tax levied u/s 115BBE of the Act in respect of the said additions. (5) The appellant craves leave to add, alter, amend any ground of appeal.”

The assessee filed return of income on 20-07-2017 declaring total income at Rs. 7,82,390/-. The assessee derives income from business and house property and other sources. The Assessing Officer observed that the assessee has shown cash balances in books and accounts and cash in hand for the period 2014-15, 2015-16 and 2016-17 for which the Assessing Officer has given the notices u/s. 142(1) of the Act. The assessee submitted the reply and after verifying the same, the Assessing Officer made addition of Rs. 35,00,000/- as cash deposits during demonetization period. Thereafter, the Assessing Officer passed order u/s. 154 dated 02-03-2020 thereby making addition of Rs. 52,39,850/-.

Being aggrieved by the order u/s. 154 of the Act, the assessee filed appeal before the CIT(A). The CIT(A) dismissed the appeal of the assessee.

The ld. D.R. relied upon the order u/s. 154, the assessment order and the order of the CIT(A). The D.R. further submitted that proper opportunity was granted by the CIT(A) to the assessee.

We have heard both the parties and perused all the materials available on record. The assessee has filed the adjournment application on two occasions before the CIT(A). The CIT(A) has not dealt with the issue on merit and simply dismissed the appeal of the assessee as ex-parte. Therefore, it will be proper to remand back this matter to the file of the CIT(A) for proper adjudication of the issues on merit. The assessee is directed to pay Rs. 10,000/- to the Income Tax Department within the period of 15 days from the date of receipt of this order. The assessee be given opportunity by following the principles of natural justice.

In the result, the appeal of the assessee is allowed for statistical purpose.