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Facts
The assessee's appeal is against the CIT(A)'s order for AY 2019-20. The orders from both the Assessing Officer (AO) and CIT(A) were passed ex parte because the assessee could not make timely compliance. The AO made additions for fixed deposits and other bank credits, and disallowed deductions.
Held
The Tribunal noted that both assessment and CIT(A) orders were ex parte, and the assessee deserved another opportunity. Therefore, the matter was restored to the AO for a fresh assessment, ensuring the assessee is given a fair opportunity.
Key Issues
Whether the ex parte orders passed by AO and CIT(A) are justifiable, and whether the assessee should be granted another opportunity to present its case.
Sections Cited
69, 80C, 24(b)
AI-generated summary — verify with the full judgment below
Order under Section 254(1) of Income Tax Act PER: PAWAN SINGH, JUDICIAL MEMBER: 1. This appeal by the assessee is directed against the order of learned Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre (NFAC), Delhi (in short, the ld. CIT(A)) dated 09/10/2025 for the Assessment Year (AY) 2019-20. The assessee has raised following grounds of appeal:
1. 1. 1. On the facts and circumstances of the case and in law, the appeal of the appellant before the CIT (A) may please be restored back and the non-compliance of the appellant in respect of the notices issued by the CIT (A) may please be excused as it was for the genuine reasons.
1. 2. On the facts and circumstances of the case and in law, the Ld. CIT(A)/NFAC erred in confirming the action of the Ld. Assessing Officer in adding time deposits amounting to Rs 10,00,000 under section 69 of the Act on the ground that the appellant was unable to prove its corresponding source.
3. On the facts and circumstances of the case and in law, the Ld. CIT(A)/NFAC erred in confirming the action of the Ld. Assessing Officer in not allowing the deduction under section 80C and 24(b) of the Act.”
Rival submissions of both the parties have been heard and record perused. The learned Authorized Representative (AR) of the assessee submits that assessment as well as ld. CIT(A) orders were passed ex parte, the assessee could not make compliance in time. The valuable rights of assessee are involved in the present appeal. The assessee is likely to succeed if one more opportunity is allowed to contest the case on merit. The Assessing Officer (‘AO’) made addition on account of credit in the bank account and also disallowed deduction under section 80C of the Income Tax Act, 1961(‘the Act’). The credit in bank account were in form of fixed deposit which were not from unknown sources, rather it was a part of sale proceed of house property sold in earlier year. The ld. AR submits that at least one more opportunity may be allowed to explain the facts before lower authorities. The ld. AR specifically prayed that matter may be restored back to the file of AO instead of ld. CIT(A).
On the other hand, the ld. Senior Departmental Representative (SR. DR) for the revenue submits that assessee was given ample opportunity by AO as well as by ld. CIT(A), the assessee remained non-compliant.
We have considered the rival submissions of both the parties and have gone through the orders of lower authorities carefully. We find that the AO while passing the assessment order made addition of Rs. 10.00 lacs on account of (AY: 2019-20) Rohit Bohra fixed deposit in Bank of Baroda for the want of supporting evidences to substantiate the source. The AO also made other addition of Rs. 6,37,524/- on account of other credit in the bank account. The ld. CIT(A) confirmed the action by taking view that assessee was given show cause notice to make submission in support of various grounds of appeal
and that no written submission was filed. Considering the fact that assessment as well as CIT(A) order are ex parte. Therefore, in our considered view, the assessee deserves one more opportunity to explain fact to the lower authorities; therefore, matter is restored back to the file of AO to pass the assessment order afresh. Needless to direct that before passing the order, the AO shall allow fair and reasonable opportunity to the assessee. The assessee is also directed to be more vigilant in future in making timely compliance.
5. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in open court on 10.03.2026 at the time of hearing. Sd/- Sd/- (GIRISH AGRAWAL) (PAWAN SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER Mumbai, Dated: 10.03.2026 Karishma J. Pawar, SR. PS (AY: 2019-20) Rohit Bohra Copy of the Order forwarded to: 1. The Appellant 2. The Respondent 3. CIT- concerned 4. DR, ITAT, Mumbai 5. Guard File BY ORDER,
(Dy./Asstt.Registrar) ITAT, Mumbai