SHRI. UMESHBHAI KHIMJIBHAI PATEL,MUMBAI vs. ITO 19(3)(5), MUMBAI

This appeal by the assessee is directed against the order of Commissioner of Income Tax (Appeals)-30, Mumbai ( in short ‘the CIT(A)’) dated 14/02/2019 for the assessment year 2010-11.

The brief facts of the case as emanating from records are: The assessee filed his return of income for the impugned assessment year declaring total income of Rs.8,09,539/- from house property, partnership firm and other sources. In proceedings under section 147 r.w.s. 148 of the Income Tax Act,1961 (in short ‘the Act’), the Assessing Officer made addition of Rs.1,18,700/- in respect of cash transactions amounting to Rs.1,18,700/-. The contention of the assessee is that the aforesaid amount advanced by the assessee to M/s. Ahuja Group is cash loan. The Assessing Officer rejected the submissions made by assessee and made addition of the aforesaid amount. Aggrieved by the assessment order dated 26/12/2017 passed under section 143(3) r.w.s. 147 of the Act , the assessee filed appeal before the CIT(A). The CIT(A) in an ex-parte proceedings confirmed the addition.

Shri Ajay Pratap Singh, representing the Department vehemently defended the impugned order and submitted that notice of hearing of the appeal was sent to the assessee on three occasions by the CIT(A), however, the assessee failed to appear before the CIT(A).. The CIT(A) was left with no option but to decide the appeal in an ex-parte proceeding. In the absence of any contrary material the CIT(A) confirmed the addition.

Submissions made by ld. Departmental Representative heard, orders of authorities below examined. The assessee in appeal has assailed the ex-parte order passed by CIT(A). The contention of assessee is that notices were never served on the assessee. The assessee had mentioned new address in Form No.35, whereas the notices were allegedly sent to old address mentioned in the assessment order. Taking into consideration entirety of facts, I deem it appropriate to restore this appeal back to the file of CIT(A) for fresh adjudication on merits after affording reasonable opportunity of hearing to the assessee, in accordance with law.

The notice of hearing of appeal be sent to the assessee by the CIT(A) on the address mentioned in Form No.35. The assessee is directed to appear before the CIT(A) on receipt of notice and co-operate in the first appellate proceedings.

In the result, impugned order is set-aside and appeal of the assessee is allowed for statistical purposes.