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Facts
The assessee appealed an 8-day delayed order from the CIT(A), which had upheld an ex parte assessment by the AO under Section 144. The assessee contended that the ex parte order, leading to an addition of Rs. 27,28,500/- for unexplained cash credits, resulted from unserved notices due to a change of address.
Held
The Tribunal condoned the delay in filing the appeal. It set aside the CIT(A)'s order and remanded the case to the Assessing Officer for a fresh assessment, instructing to provide the assessee an opportunity to present their case regarding the unexplained cash credits.
Key Issues
Condonation of delay in filing appeal; validity of ex parte assessment due to unserved notices; addition of unexplained cash credits.
Sections Cited
Section 250 of the Income Tax Act, 1961, Section 144 of the Income Tax Act, 1961
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, PATNA SMC” BENCH, VIRTUAL HEARING AT KOLKAΤΑ
Before: SRI SANJAY GARG
order : 10.02.2025 ORDER The captioned appeal has been preferred by the assessee against the order dated 10.10.2024 of the Ld. Commissioner of Income Tax (Appeal), National Faceless Appeal Centre, Delhi [hereinafter referred to as Ld. ‘CIT(A)’] u/s. 250 of the Income Tax Act, 1961 (hereinafter referred to as the “Act”) for Assessment Year (AY) 2017-18.
Appeal of the assessee is time barred by 8 days. An application for condonation of delay has been placed in file. Considering the shortness of delay, delay of filing the appeal is hereby condoned and the appeal is taken up for hearing.
At the outset, Ld. Counsel for the assessee has drawn my attention to the impugned order of the Assessing Officer to submit that the order of the Assessing Officer is an ex parte order passed u/s. 144 of the Act. The Ld. Counsel for the assessee has further submitted that it was brought before the Ld. CIT(A) that the address of the assessee was changed and, therefore, notices of hearing were not served upon the assessee resulting into ex parte order passed by the Assessing Officer. The Ld. Counsel for the assessee has I.T.A. No.: 9/PAT/2025 Arvind Kumar, AY : 2017-18 further submitted that despite the above submissions, the Ld. CIT(A) upheld the ex parte order of the Assessing Officer. It has further been submitted that the Assessing Officer has made the addition of Rs.27,28,500/- on account of unexplained cash credits in the bank account of the assessee whereas, the assessee can duly explain the source of the same.
The Ld. DR, on the other hand, relied on the findings of the lower authorities.
Considering the aforesaid submissions of the Ld. AR of the assessee, I am of the view that the interests of justice will be well served if, the assessee is given an opportunity to present his case before the Assessing Officer. Accordingly, the impugned order of the Ld. CIT(A) is set aside. The matter is restored to the Assessing Officer for assessment afresh on this issue in accordance with law.
In the result, the appeal of the assessee is treated as allowed for statistical purposes.