LAKSHMANAN TAMILMANI,,ANDHRA PRADESH vs. ITO, WARD-I,, DHARMAPURI

This appeal filed by the assessee is directed against the order of the ld. Commissioner of Income Tax (Appeals), Salem, dated 24.06.2019 relevant to the assessment year 2011-12. Besides challenging the issue on merits, the ld. Counsel for the assessee has mainly challenged the ex-parte order passed by the ld. CIT(A).

Brief facts of the case are that the assessee has not filed the return of income for the assessment year 2011-12, despite the assessee made frequent high value inward remittance mostly in cash and subsequent withdrawals in Savings Bank Account No. 000101206731 maintained with ICICI Bank during the financial year 2010-11. Having requisite belief that the income chargeable to tax has escaped assessment within the meaning of section 147 of the Income Tax Act, 1961 [“Act” in short], the Assessing Officer issued notice under section 148 of the Act for filing return of income for the assessment year 2011-12 besides calling details by issuing notice under section 142(1) of the Act with regard to detailed evidences for starting up of the business, copy of licence/TIN No. obtained for the business, M/s. Dimity Fashions, copies of HSBC and ICICI bank statements, etc. The assessee appeared and furnished the copy of ICICI Bank statement for the period 2010-11. Regarding M/s. Dimity Fashions, he stated that he was not having any evidence for the start-up of the business etc., but produced copies of ICICI bank statement for the periods 2009-10 and 2010-11. On verification of the details furnished by the total cash deposits/credits of ₹.11,49,874/- was assessed as income of the assessee. The assessee carried the matter in appeal before the ld. CIT(A). Since, not only there was any representation from assessee’s side, but also the assessee has not filed statements of facts and grounds of appeal, the ld. CIT(A) dismissed the appeal of the assessee despite opportunity was given to the assessee to rectify the mistake.

On being aggrieved, the assessee is in appeal before the Tribunal. Despite service of notice, none appeared on behalf of the assessee when the appeal was taken up for hearing. Hence, we proceed to decide the appeal on merits after hearing the ld. DR. However, the assessee’s counsel has sent an adjournment petition by courier, which was received by the Registry of this Tribunal at 12.10 PM and the same was not taken into account since the same was not received prior to the hearing of the appeal.

We have heard the ld. DR, perused the materials available on record and gone through the orders of authorities below. Against the assessment order, the assessee preferred further appeal before the ld. CIT(A). On perusal of the appellate order, we find that despite issuance of various notices, none appeared on behalf of the assessee nor the defects, as stated above, were rectified. Since the assessee could not file the statements of facts and grounds of appeal, the ld. CIT(A) rejected and dismissed the appeal filed by the assessee. When the assessee could file the statements of facts and grounds appeal before the Tribunal, what prevented the assessee to file those details before the ld. CIT(A) was best known to the assessee. However, considering the ends of natural justice, we direct the assessee to file complete details including statements of facts and grounds of appeal before the ld. CIT(A) requiring for adjudication of appeal and after considering those details as may be furnished by the assessee, the ld. CIT(A) shall decide the issues afresh in accordance with law after allowing an opportunity of being heard to the assessee.

In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on the 27th November, 2019 in Chennai.