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Facts
The assessee challenged an addition of Rs. 43,10,020/- as undisclosed income confirmed by the CIT(A) (NFAC) via an ex-parte order. The assessee, claiming to be illiterate, stated unawareness of notices communicated through the ITB portal after the appeal migrated to the faceless scheme, leading to a delay in filing the appeal before the Tribunal.
Held
The Tribunal condoned the 40-day delay in filing the appeal, acknowledging the assessee's illiteracy and the ex-parte nature of the CIT(A)'s order. It held that the assessee was not given adequate opportunity and therefore remanded the case back to the CIT(A) for fresh adjudication on merits, ensuring a proper opportunity of hearing.
Key Issues
Whether the addition of undisclosed income was justified without providing proper opportunity; whether the CIT(A) could pass an ex-parte order given the assessee's illiteracy and lack of awareness of the faceless appeal communication.
Sections Cited
133(6), 234A, 234B
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, CHANDIGARH BENCH, ‘A’, CHANDIGARH
Before: SHRI LALIET KUMAR & SHRI KRINWANT SAHAY
�नधा�रती क� ओर से/Assessee by : Sh.Navdeep Monga, Advocate राज�व क� ओर से/ Revenue by : Dr.Ranjit Kaur, Addl. CIT, Sr. DR सुनवाई क� तार�ख/Date of Hearing : 23.07.2025 उदघोषणा क� तार�ख/Date of Pronouncement : 24.07.2025 आदेश/Order Per Krinwant Sahay, AM : Appeal in this case has been filed by the assessee against the order dated 29.08.2024 passed by the Ld. CIT(A), National Faceless Appeal Centre (NFAC), Delhi.
Grounds of appeal are as under:
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That on the law, facts and in the circumstances of the case, the Ld. CIT(A), NFAC has erred in confirming the addition of Rs.43,10,020/- as Income from undisclosed source despite the fact that appellant placed on record the additional evidences taken from Department of Excise and Taxation, Jind under RTI Act wherein prima facie seen that on 03.03.2011 DD's issued from appellant's bank was used for obtaining liquor tender in the name of 3 Persons namely 1. Karambir Nath, 2. Surender, 3. Rameshwar.
2. That Ld. CIT (Appeals), NFAC has erred in law and on facts while deciding the appeal ex- parte and passed an unreasonable and non- speaking order, Further, it is stated that since the appellant is illiterate, he was not aware of the notices being communicated through ITB portal after his appeal was migrated to faceless appeal scheme and accordingly the appellant could not make any proper representation.
That the Ld. AO, Jind has erred in laws and facts, in finalizing the remand report dated 10.06.2020 without providing the adequate opportunity to the appellant. It is fundamental requirement of principles of natural justice that no one should be condemned unheard. In the present case, the appellant was never provided with an adequate opportunity to prove his case.
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4. That on the facts and circumstances of the case, it is duly apprised to the CIT(A), Hisar that the appellant to support its averment requested the Ld. AO to exercise its power under Section 133(6) of the Act to call the record from Excise department, Jind which the Ld. AO failed to do so.
5.. That on law, facts and circumstances of the case, the Ld. CIT(A)/NFAC has erred in upholding the charging of interest u/s 234A and 234B of Income Tax Act, 1961.
That the appellant seeks permission to add/amend any grounds of appeal at the time of hearing and further to summit proper explanations in support of the additions made at the time of hearing.
3. The Registry has pointed out that there is a delay of 40 days in filing of the appeal before the Tribunal. The Counsel of the Assessee has filed an application dt. 26.12.2024 on behalf of the Assessee, making prayer for condonation of delay. The application of the Assessee is as under:
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We have considered the detailed reasoning given in the application and we are inclined to condone the delay.
The ld. DR did not have any objection for condonation of delay. Accordingly, the delay in filing of the appeal is hereby condoned.
6. At the very outset, ld. Counsel for the Assessee stated that it is an ex-parte order passed by the Ld. CIT(A). He submitted that the Assessee is an illiterate person and he was not aware of the notices being communicated through ITB portal after the appeal was migrated to faceless appeal, therefore, he could not make any proper representation.
Per contra, ld. DR relied on the orders of the authorities below.
We have considered the findings given by the Assessing Officer in the assessment order and by the Ld. CIT(A) in the appellate order. We find that Assessee’s submissions could not be considered by the CIT(A) as the 1198-Chd-2024 Nanha S/o Sh. Dewa Singh 7 Assessee could not file the details as per the grounds of appeal because of the notices sent by the CIT(A) were on ITB portal and the Assessee being an illiterate person, could not see it. Therefore, we are of the considered view that in the fitness of things and keeping in view the element of natural justice to the Assessee, the matter should be remanded back to the fie of the CIT(A) for adjudication afresh on merit.
9. Accordingly, the case is remanded back to the file of the CIT(A) for adjudication afresh on merit, by considering the submissions and documents produced by the Assessee and the relevant material available on record. Needless to say, that the CIT(A) shall afford due, reasonable and adequate opportunity of hearing to the Assessee. The Assessee, no doubt, shall cooperate in the fresh proceedings before the CIT(A). All pleas available under the law shall remain so available to the assessee. Ordered accordingly.
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In the result, Assessee’s appeal is allowed for Statistical Purposes.