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Facts
The assessment was completed under Section 147 read with Section 144, bringing to tax Rs. 83,95,000/- as unexplained income from sale of shares. The CIT(A) sustained the AO's order on account of non-prosecution.
Held
The Tribunal noted that no explanation was furnished by the assessee and the appeal was filed against an ex-parte order. However, to ensure substantial justice, the matter was set aside to the CIT(A) for a fresh decision on merits after providing a reasonable opportunity to the assessee.
Key Issues
Whether the assessee should be granted another opportunity for explanation when the appeal was filed against an ex-parte order due to non-prosecution.
Sections Cited
147, 144, 69A
AI-generated summary — verify with the full judgment below
Order PER VIKRAM SINGH YADAV, A.M. : This is an appeal filed by the Assessee against the order of the Ld. CIT(A)/ NFAC, Delhi dt. 22/02/2024 pertaining to Assessment Year 2013-14.
Briefly the facts of the case are that the assessment was completed u/s 147 r.w.s 144 vide order dated 31/03/2022 wherein the AO brought to tax a sum of Rs. 83,95,000/- as unexplained income u/s 69A on account of failure of the assessee to disclose the income from sale of shares. Against the order of the AO, the assessee carried the matter in appeal before the Ld. CIT(A) who has since sustained the order of the AO on account of non-prosecution.
Against the said order, the assessee is in appeal before us. None has appeared on behalf of the assessee, however, an adjournment application has been filed by the ld Counsel, Mr Rajesh Mehru through email stating that he cannot attend to the proceedings due to some unavoidable reasons, however, no specifics in terms of circumstances which has prevented him from attending to the proceedings have been specified and therefore, we are constrained to reject such adjournment application as lacking the necessary explanation for non-appearance. Further, given that the present appeal was filed way back in June 2024 against an ex-parte order passed by the Ld. CIT(A) and no finding has been recorded on merits of the case and even before the AO, no explanation has been furnished by the assessee resulting in passing of ex-parte assessment order, it was decided that no useful purpose would be served in adjourning the matter any further and after hearing the Ld. Sr DR who has not raised any specific objection where the matter is set aside to the file of the Ld. CIT(A) and keeping in view the principle of substantial justice, we believe that the assessee deserve one more opportunity to come forward and furnish necessary explanation and documentation, if any in support thereof. The matter is hereby set-aside to the file of the ld CIT(A) to decide the same afresh on merits as per law after providing reasonable opportunity to the assessee.
Needless to say, the assessee is hereby directed to attend to the appellate proceedings and to file requisite information/documentation as so directed and/or as advised, and in an event, where the conduct of the assessee remain non- cooperative/non-compliant, the ld CIT(A0 is at liberty to decide the matter as per law.