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Facts
The assessee had not filed a return for AY 2009-10. Based on AIR information about a deposit of Rs. 13,47,500/- in her bank account, the AO selected the case for scrutiny. Despite the assessee claiming the amount was a gift from blood relations, the AO treated it as unexplained cash credit and added it to her income.
Held
The Tribunal noted that the lower authorities had passed ex-parte orders. Considering the interest of substantial justice, the Tribunal restored the file to the Assessing Officer, giving the assessee one more opportunity to present her case and evidence.
Key Issues
Whether the assessee should be granted another opportunity to present evidence for the cash deposit, given the ex-parte nature of previous orders.
Sections Cited
144, 147, 271(1)(c)
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Income Tax Appellate Tribunal, SMC BENCH, LUCKNOW
Before: SHRI. SUDHANSHU SRIVASTAVA
Assessment Year: 2009-10 Mrs Jagzeet Kaur v. Income Tax Officer 1(2) C-595, Rajendra Nagar Bareilly Bareilly TAN/PAN:AVPPK8356B (Appellant) (Respondent) Appellant by: None Respondent by: Shri Sanjeev Krishna Sharma, D.R. Date of hearing: 23 01 2025 Date of pronouncement: 23 01 2025 O R D E R
This appeal has been preferred by the assessee against the order dated 30.03.2024, passed by the Commission oer Income Tax (Appeal), Noida (ld. CIT(A)) for Assessment Year 2009-10.
The brief facts of the case are that the assessee had not filed the return of income for the year under consideration. On the basis of AIR information that the assessee had deposited a sum of Rs.13,47,500/- in her Saving Bank Account, the case of the assessee was selected for scrutiny. Statutory notices were issued to the assessee. In response to the notice issued by the AO, the assessee submitted that the Bank Account of the assessee is very old and the amount found deposited in the Bank Account could be out of the amount given by her blood relations as gift. Not being satisfied with the reply submitted by the assessee, the amount of Rs.13,47,500/- found deposited in the Bank Account of the assessee was treated as unexplained cash credit and was added to the total income of the assessee. The AO, accordingly, completed the assessment under section 144 read with 147 of the Income Tax Act, 1961 (hereinafter called “the Act’), assessing the total income of the assessee at Rs.13,47,500/-.
2.1 The AO also initiated penalty proceedings under section 271(1)(c) of the Act.
3. Aggrieved, the assessee preferred an appeal before the Ld. First Appellate Authority, who dismissed the appeal of the assessee for the reason of non-compliance by the Assessee..
Now, the assessee has approached this Tribunal challenging the dismissal of its appeal by the ld. CIT(A) by raising the following grounds of appeal:
1.The Learned Commissioner of Income Tax (Appeal) has erred in law and facts of the are in confirming addition of Rs.13,47,500/- made by the Assessing officer by dismissing the appeal of the Assessee.
2. The Learned Commissioner of Income Tax (Appeal) has further erred in law and on facts in rejecting the additional evidences which go to the root of the matter.
The assessee reserves its right to add, amend, alter or delete any ground of appeal at the time of hearing.
None was present for the assessee when the appeal was called out for hearing nor was any adjournment application moved in this regard. However, looking into the facts of the case, I proceed to adjudicate the appeal ex-parte qua the assessee.
Since the orders passed by both the lower authorities were ex-parte, the Ld. Senior D.R. had no objection to the restoration of appeal to the file of the Assessing Officer.
I have heard the Ld. Senior Departmental Representative and have also perused the material on record. Looking into the facts of this case, I am of the considered view that the Assessee deserves one more opportunity to present her case and, therefore, in the interest of substantial justice, I restore this file to the Office of the Assessing Officer with the direction to provide one more opportunity to the Assessee to present her case and produce the necessary evidences in support of the deposits in the Bank Account of the Assessee. I 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 shall 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 23/01/2025.