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Facts
The assessee did not file a return of income for AY 2017-18, despite depositing Rs. 1,06,40,920/- in their bank account and receiving brokerage of Rs. 2,433/-. The AO reopened the assessment under Section 147, issued notices, and completed the assessment ex-parte, adding the cash deposits.
Held
The Tribunal restored the appeal to the file of the Assessing Officer, directing that the assessee be given another opportunity to present their case and produce evidence. The Tribunal cautioned the assessee to comply with the AO's directions.
Key Issues
Whether the assessee should be given another opportunity to present their case before the Assessing Officer after the appeal was dismissed by the NFAC due to non-compliance.
Sections Cited
147, 148, 144, 144B, 115BBE, 271AAC(1), 272A(1)(d), 271F, 69A
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, LUCKNOW BENCH “B”, LUCKNOW
Before: SHRI. SUDHANSHU SRIVASTAVA & SHRI ANADEE NATH MISSHRA
This appeal has been preferred by the assessee against order dated 13.02.2025, passed by the National Faceless Appeal Centre, Delhi (NFAC) for Assessment Year 2017-18.
The brief facts of the case are that the assessee had not filed the return of income for the year under consideration. As per information available with the Income Tax Department, the assessee had deposited cash amounting to Rs.1,06,40,920/- in his Bank Account No.3502436739 maintained with Central Bank of India and the assessee had also received brokerage of Rs.2,433/- during the year under consideration. The Assessing Officer (AO) reopened the assessment under section 147 of the Income Tax Act, 1961 (hereinafter called “the Act’) by issuing notice under section 148 of the Act. In response to notice under section 148 of the Act, the assessee did not file any return of income. The AO, thereafter, issued statutory notices, requiring the assessee to furnish the details of cash deposits. Since there was still no compliance from the side of the assessee, the AO completed the assessment under section 144 read with sections 147 and 144B of the Act, assessing the total income of the assessee at Rs.1,06,43,350/- after making addition of Rs.1,06,353/-.
2.1 The AO also invoked the provisions of section 115BBE of the Act and initiated penalty proceedings under sections 271AAC(1), 272A(1)(d) and 271F of the Act.
Aggrieved, the Assessee preferred an appeal before the NFAC, which dismissed the appeal of the assessee for the reason of non-compliance by the Assessee.
Now, the Assessee has approached this Tribunal challenging the order of the NFAC by raising the following grounds of appeal:
1. In the facts and circumstances of the case and in law the Ld. C.I.T., (Appeals), National Faceless Appeal Centre [NFAC], Delhi, has legally erred in confirming the action of the 1.d. A.O. while confirming the addition of Rs.1,06,43,353.00 u/s 69A of the Income Tax Act, 1961.
2. In the facts and circumstances of the ease and in law the Ld. C.I.T., (Appeals), National Faceless Appeal Centre [NFAC], Delhi, has erred in confirming the action of the Ld. A.O. while not giving adequate opportunity of hearing.
3. It is humbly prayed that one more opportunity may be given to satisfy the Ld. C.I.T. (Appeals), National Faceless Appeal Centre [NFAC], Delhi.
4. The appellant craves his/her right to add, amend or alter any of the grounds on or before the hearing.
None was present for the assessee when the appeal was called out for hearing nor was any adjournment application received in this regard. However, looking into the facts of the case, we proceed to adjudicate the appeal ex-parte qua the assessee.
The Ld. Senior D.R. had no objection to the restoration of appeal to the file of the Assessing Officer.
We have heard the Ld. Senior Departmental Representative and have also perused the material on record. Looking into the peculiar facts of this case, we are of the considered view that the Assessee deserves an opportunity to present his case and, therefore, we restore this file to the Office of the Assessing Officer with the direction to provide one more opportunity to the Assessee to present his case and produce the necessary evidences in support of the transactions entered into by the Assessee. We also caution the Assessee to fully comply with the directions of the Assessing Officer in the set-aside proceedings when called upon to do so, failing which, the Assessing Officer would be at complete liberty to pass the order in accordance with law, based on the material available on record even if it is ex-parte qua the assessee.
In the result, the appeal of the assessee stands allowed for statistical purposes.
Order pronounced in the open Court on 29/05/2025.