DHARAM SINGH,KAITHAL vs. INCOME TAX OFFICER, KURUKSHETRA

The assessment in the present case was completed u/s 144 of the Act. The AO received information that cash of Rs.29,95,000/- was deposited in the bank account of the assessee during the relevant previous year. Notice u/s 148 was issued and in the absence of any response, best judgment assessment was completed. The assessee filed an appeal before the CIT(A).

From the impugned appellate order, it is evident that the Ld. CIT(A) has passed the order ex parte in absence of any effective participation by the assessee, despite several notices issued through the ITBA portal. The order of the Ld. CIT(A) is primarily based on the observation that the assessee failed to pursue the appeal or produce any supporting evidence or explanation.

Before us, the Ld. AR contended that the non-appearance before the Ld. CIT(A) was not deliberate and due to certain inadvertent reasons, the assessee 2 could not comply with the notices. It was further submitted that the assessee had substantive grounds and evidences in support of the source of the impugned cash deposit, which could not be placed earlier and may be allowed to be submitted if one more opportunity is granted.

Per contra, the Ld. Sr. DR relied on the order of the lower authorities.

We have heard the rival contentions and perused the material available on the record. Considering the fact that the Ld. CIT(A) has not adjudicated the appeal on merits and the assessee has expressed willingness to cooperate and submit necessary documents to substantiate his case, we are of the considered view that the assessee deserves a final opportunity to present his case before the Ld. CIT(A).

6.1 Accordingly, in the interest of natural justice and fair play, we deem it fit to remand the matter back to the file of the Ld. CIT(A) with a direction to decide the appeal afresh after affording reasonable opportunity of being heard to the assessee. The assessee is also directed to ensure due compliance and not to seek unnecessary adjournments.

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