SRI. K.S. SRINIVAS,KOLAR vs. INCOME TAX OFFICER, WARD- 1, KOLAR

None appeared on behalf of the assessee at the time of hearing of the appeal. We proceed to dispose of the appeal ex parte after hearing the ld. DR and perusing the material on record.

In this case, at the time of assessment the AO issued notice u/s. 142(1) of the Income-tax Act, 1961 [the Act] to the assessee on 16.11.2007 which was served, for which there was no response from assessee. Consequently, the assessee was communicated the lines of assessment vide AO’s letter dated 4.12.2007 and given time upto 14.12.2007. Since there was no response from the assessee, the AO proceeded to pass an ex parte order u/s. 144 of the Act and brough to tax the amount of Rs.14,69,150 which was deposited in bank under the head ‘income from other sources’. On appeal, the CIT(Appeals) observed that hearing notices were issued on about 10 occasions to which the assessee did not respond. The CIT(A), however, send notice on 21.6.2019 and on 20.8.2019 for hearing on 30.8.2019. However, due to non-appearance and for want of prosecution, the CIT(A) dismissed the appeal of assessee by his impunged ex parte order.

Even at the time of hearing before me, there was no appearance from the assessee. From the order of AO, it is observed that he has passed the assessment order ex parte dated 17.12.2007 after issuing notice/letter on 16.11.2007 & 04.12.2007. I am of the opinion that the assessee must be afforded reasonable opportunity to present his case. Therefore, I set aside the orders of lower authorities and restore the matter to the Assessing Officer, for fresh consideration after affording due opportunity of being heard to the assessee.

In the result, the appeal by the assessee is allowed for statistical purposes.