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Facts
The assessee's assessment was reopened due to a significant bank deposit of Rs.1,75,89,000/-, leading to an ex-parte assessment order and subsequent ex-parte dismissal of appeal by the CIT(A) due to non-compliance. The assessee explained that residing in a remote area with poor internet access prevented timely response and asserted the deposit represented fruit purchase prices, not taxable income.
Held
The Tribunal set aside both the ex-parte assessment and CIT(A) orders, granting the assessee a fresh opportunity to explain the case before the Assessing Officer. The matter was restored to the AO for fresh adjudication, with the assessee directed to cooperate by submitting necessary details.
Key Issues
Whether ex-parte assessment and appeal dismissal orders should be set aside to provide the assessee a fresh opportunity to explain the source of bank deposits, considering claims of communication difficulties due to remote location.
Sections Cited
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Income Tax Appellate Tribunal, DIVISION BENCH, ‘B’ CHANDIGARH
Before: SHRI RAJPAL YADAV & SHRI MANOJ KUMAR AGGARWAL
आयकर अपील�य अ�धकरण,च�डीगढ़ �यायपीठ, च�डीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH, ‘B’ CHANDIGARH BEFORE SHRI RAJPAL YADAV, VICE PRESIDENT AND SHRI MANOJ KUMAR AGGARWAL, ACCOUNTANT MEMBER आयकर अपील सं./ �नधा�रण वष� / Assessment Year: 2017-18 Shri Sher Singh, Vs The ITO, Village-Grahna Rampur Bushahr. P.O. Grahna, Dhair, Anni (HP). �थायी लेखा सं./PAN NO: CSEPS1911C अपीलाथ�/Appellant ��यथ�/Respondent Assessee by : Shri Vishal Mohan, Sr. Advocate with Ms. Isha Sharma, Advocate Revenue by : Dr. Ranjit Kaur, Addl. CIT Sr.DR Date of Hearing : 17.07.2025 Date of Pronouncement : 25.08.2025 HYBRID HEARING O R D E R PER RAJ PAL YADAV, VP
The assessee is in appeal before the Tribunal against the order of the ld. Commissioner of Income Tax (Appeals) [in short ‘the CIT (A)’] dated 27.06.2024 passed for assessment year 2017-18.
The assessee has not filed his return of income. The assessment was reopened on the ground that a sum of A.Y.2017-18 2 Rs.1,75,89,000/- was deposited in a Current Account maintained with Punjab National Bank, Kumarsain. The assessee has received commission and brokerage of Rs.1,03,966/-. The assessee did not respond to the notices of the AO, hence AO has passed the assessment order ex-parte.
Appeal to the ld.CIT (Appeals) was dismissed for want of prosecution because assessee did not respond to the notices of the ld. CIT (Appeals) also.
Before us, assessee has filed his affidavit and pleaded therein that he resides in a remote area of Himachal Pradesh where internet facility was not available, therefore, it was not practical for him to keep a continuous tab on the income tax proceedings. He was dependent upon his Tax Consultant. He is a small fruit commission agent. He does not have any taxable income. The amounts deposited represent the purchase price of fruits from persons on different locations.
The ld. DR submitted that assessee did not give any explanation to any of the authorities, hence, on an estimated basis, additions have been made. The assessee could not explain the source of deposit.
ITA No.911/CHD/2024 A.Y.2017-18 3
On due consideration of the above facts and circumstances, we deem it appropriate to provide one more opportunity to the assessee to explain his case because both the impugned orders are ex-parte. Therefore, we dem it appropriate to set aside the impugned orders and restore the issue to the file of AO for fresh adjudication. The assessee is directed to cooperate with the AO by submitting necessary details.
In the result, appeal is allowed for statistical purposes.
Order pronounced on 25.08.2025.