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Facts
The assessee, an individual, filed a return of income declaring Rs. 16,51,470/-. The case was selected for scrutiny due to abnormal cash deposits during the demonetization period. The Assessing Officer made an addition of Rs. 35,04,500/- as unexplained source, raising the total income to Rs. 60,10,073/-, due to non-compliance with notices.
Held
The assessee's appeal was dismissed by the CIT(A) ex-parte without considering the merits due to non-compliance. The Tribunal noted that the CIT(A)'s order was contrary to law and in the interest of justice, remanded the matter back to the CIT(A) for fresh examination with an opportunity of being heard to the assessee.
Key Issues
Whether the CIT(A) erred in dismissing the appeal ex-parte without adjudicating on the merits of the case. Whether the matter should be remanded for fresh consideration.
Sections Cited
143(2), 142(1), 69A
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “PATNA BENCH, PATNA
Before: Shri Sonjoy Sarma & Shri Rakesh Mishra
Assessment Year: 2017-18 Joseph Jose……………………….....…..…………………....Appellant House of Sudhir Kr. Singh, Opposite Loyala High School, P.O Sadaqat, Ashram Kurji Patna, Bihar-800010. [PAN: AJLPJ6722E] vs. DC/AC, Cir-4, Patna……….……….…............................…..…..... Respondent Appearances by: None appeared on behalf of the appellant. Shri Ashwani Kr. Singal, JCIT, appeared on behalf of the Respondent. Date of concluding the hearing : July 24, 2025 Date of pronouncing the order : August 07, 2025 आदेश / ORDER
Per Sonjoy Sarma, Judicial Member:
This appeal has been filed by the assessee against the order passed by the CIT, Appeal ADDL/JCIT(A)-10, Delhi ["CIT(A)"] for the Assessment Year 2017-18.
Brief facts of the case ate that the assessee is an individual and derived his income from house property, business and other sources for the assessment year 2017-18. The assessee filed his return of income declaring total income of Rs.16,51,470/-. The case of the assessee was selected for complete scrutiny through CASS showing reason for abnormal increase in cash deposits during demonetization period as compared to pre-demonetisation period. Therefore, the Assessing Officer issued notices u/s 143(2) & 142(1) of the Act asking for various details.
Joseph Jose Due to non-compliance of the notices sent to the assessee, the Assessing Officer completed the assessment by making an addition of Rs.35,04,500/- which was deposited during the demonetization period u/s 69A of the Act as unexplained source by assessing total income of the assessee at Rs.60,10,073/-.
Aggrieved by the above order, the assessee filed an appeal before the ld. CIT(A) where the appeal of the assessee was dismissed due to non-compliance by simply sustaining the order of the Assessing Officer.
Dissatisfied with the above order, the assessee is in appeal before this Tribunal. At the time of hearing, the assessee did not turn up before this Bench. Although, Registry has issued notice to the assessee on the address provided in Form No.36. As there is no one turned up, we cannot keep this appeal pending for inordinate period, we, therefore, with the assistance of the ld. DR heard this matter.
The ld. DR stated that the assessee is a habitual defaulter and it did not turn up before the Assessing Officer as well as ld. CIT(A) and even before this Bench, therefore, the appeal needs to be dismissed.
We, after hearing the ld. DR and perusing the materials available on record, find that although the assessee did not turn up before the authorities below, however, the ld. CIT(A) passed the impugned order ex parte without going into the merits of the case by simply dismissing the appeal of the assessee, which is contract to the provisions of law. We, therefore, in the interest of justice and fair play, feel it necessary to remand the matter back to the file of the ld. CIT(A) with a direction to re-examine the issue afresh after giving reasonable opportunity of being heard to the assessee and to decide the appeal on merits of the case. We direct the assessee to comply all notices during the remand proceedings.
Kolkata, the 7th August, 2025.