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Facts
The assessee challenged an ex-parte order from the CIT(A) for AY 2018-19, which concerned an addition of ₹12,72,800/- under section 68 for cash credit from undisclosed sources. The CIT(A) passed the order due to the assessee's non-compliance despite multiple notices.
Held
The Tribunal, taking a lenient view, remanded the case back to the CIT(A) for adjudication on merits with a speaking order. This remand is conditional on the assessee depositing ₹5,500/- within 15 days and filing all relevant submissions, with the CIT(A) providing a reasonable opportunity of being heard.
Key Issues
Whether the ex-parte order passed by the CIT(A) for an addition under Section 68 was justified and if the assessee should be given another opportunity to present its case on merits.
Sections Cited
Section 68 of the Income Tax Act, 1961
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Income Tax Appellate Tribunal, NAGPUR BENCH, NAGPUR
Before: SHRI NARENDER KUMAR CHOUDHRY
The present appeal has been filed by the assessee challenging the impugned order dated 31/01/2025, passed by the learned Commissioner of Income Tax (Exemption), Pune, [“learned CIT(A)”], for the assessment year 2018–19.
Considering non–compliant attitude of the assessee before the learned CIT(A) despite issuance of three notices and the fact that the issue involved pertains to the addition of ` 12,72,800/– under section 2 Rajesh Bhagwandas Premani ITA no.119/Nag./2025 68 of the Income Tax Act, 1961 (for short "the Act") on account of cash credit from undisclosed sources, which remained to be adjudicated in its right perspective and proper manner, as the learned CIT(A) has passed ex–parte order, therefore, this Court, by taking a lenient view, is inclined to remand the instant case to the file of the learned CIT(A) for adjudication on merits by passing a speaking order, subject to deposit of ` 5,500/– (Rupees five thousand and five hundred only) within 15 days from the date of this order, in the Revenue Department under the “Other Head”. The assessee is also directed to file the relevant submissions/documents. It is clarified that, in case of subsequent default, the assessee shall not be entitled for any leniency. Thus, this appeal is remanded back to the file of the learned CIT(A) for adjudication, limited to the issue as mentioned above. Suffice to say, the Ld. Commissioner shall provide reasonable opportunity of being heard to the assessee.
In the result, appeal of the assessee is allowed for statistical purposes in terms, as indicated above. Order pronounced in the open Court on 19/06/2025