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Facts
The assessee's appeal was dismissed by the CIT(A) in limine for non-compliance. The original assessment order by the AO was ex-parte and determined income at Rs. 18,88,383 against a Nil return, including additions for unexplained money and interest.
Held
The Tribunal noted that both the AO and CIT(A) passed orders without affording reasonable time and opportunity to the assessee. The impugned order of the CIT(A) was set aside, and the issues were restored to the AO for a de novo assessment.
Key Issues
Whether the appellate authorities (AO and CIT(A)) afforded reasonable opportunity to the assessee before passing ex-parte orders.
Sections Cited
250, 147, 144, 69A
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Income Tax Appellate Tribunal, LUCKNOW BENCH “SMC”, LUCKNOW
PER ANADEE NATH MISSHRA, A.M.: (A) The present appeal has been filed by the assessee against the order dated 05.03.2025 passed by the learned Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre (NFAC) under section 250 of the Income Tax Act, 1961 (“Act”, for short), for the assessment year 2015-16 wherein, the assessee’s appeal has been dismissed in limine for the reason of non-compliance.
(A.1) In this case, vide assessment order dated 02.03.2023 passed by Assessing Officer u/s 147 read with section 144 of the Act, assessee’s total income was determined at Rs.18,88,383/- (Rounded off to Rs.18,88,380/-) as against the returned income of Rs. ‘Nil’. In the aforesaid assessment order, addition of Rs.18,00,000/- was made on account of unexplained money u/s 69A of the Act. Further addition of Rs.88,383/- was made on account of interest added to the total income of assessee. The order passed by the Assessing Officer was an ex-parte order qua the assessee. Vide impugned appellate order dated 05.03.2025, the assessee’s appeal was dismissed by the learned CIT(A). The (B) In the course of appellate proceedings in ITAT learned A.R. for the assessee submitted that the Assessing Officer as well as learned CIT(A) have passed orders without affording reasonable time and opportunity to the assessee. In view of the foregoing, learned AR for the assessee submitted, the impugned order of learned CIT(A) should be set aside and the issues in dispute should be restored back to the file of the Assessing Officer with the direction to pass fresh assessment order in accordance with law after providing reasonable opportunity to the assessee. The learned Sr. D.R. for the Revenue expressed no objection. In view of the foregoing, the impugned appellate order dated 05.03.2025 is set aside and the disputed issues are restored back to the file of the Assessing Officer with the direction to pass de novo assessment order in accordance with law on these specific issues, after providing reasonable opportunity to the assessee.
(C.1) In the result, the appeal of the assessee is partly allowed for statistical purposes. Order pronounced in the open Court on 14/10/2025.