Loading judgment…
Facts
The assessee failed to file an Income Tax Return (ITR) in response to a notice under section 142(1) of the Income Tax Act. The Assessing Officer, based on data analytics from 'operation clean money', found unexplained cash deposits of Rs. 42,95,897/- during the demonetization period and added Rs. 2,15,03,053/- to the assessee's income as unexplained money. The assessee also failed to appear before the CIT(A), leading to the dismissal of the appeal.
Held
The Tribunal acknowledged that both the Assessing Officer and CIT(A) orders were ex parte. The assessee claimed illness prevented timely compliance. Considering this and the documents submitted by the assessee, the Tribunal found it justified to remand the issue back to the Assessing Officer for re-examination.
Key Issues
Whether the ex parte assessment and appellate orders, passed due to the assessee's inability to appear owing to illness, should be set aside and the matter remanded for fresh adjudication after affording a reasonable opportunity of being heard.
Sections Cited
250, 142(1), 144
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 Ranjay Kumar Diwakar.………………………………………..………….……Appellant M/s Nidhi Pharma, Purani Jail Road, Nawada, Bihar-805110. [PAN: AOPPD7881R] vs. ITO, Ward-2(5), Bihar Sharif.……....….….. ……………….........……...…..…..Respondent Appearances by: Shri Manoj Kataruka, Advocate, appeared on behalf of the appellant. Shri Ashwani Kr. Singal, JCIT - Sr. DR, appeared on behalf of the Respondent. Date of concluding the hearing : February 05, 2025 Date of pronouncing the order : February 07, 2025 ORDER
Per Sonjoy Sarma, Judicial Member:
The present appeal has been preferred by the assessee against an order dated 12.09.2023 of the National Faceless Appeal Centre [hereinafter referred to as ‘CIT(A)’] passed u/s 250 of the Income Tax Act (hereinafter referred to as the ‘Act’).
At the outset, the Registry has informed that there is a delay of 79 days in filing the present appeal. The assessee filed an application for condonation of delay stating reasons for such delay. After considering the application, we find reasonable cause and the delay was not intentional. We, therefore, condone the delay in filing the appeal and adjudicate the appeal on merits of the case. 3. Brief facts of the case are that in the case of the assessee, notice u/s 142(1) of the Act was issued for calling the assessee to submit true and correct return of income in respect of assessment year 2017-18 and Assessment Year: 2017-18 Ranjay Kumar Diwakar the assessee failed to furnish the ITR in response to the notice u/s 142(1) of the Act. The Assessing Officer, on the basis of data analytics and information gather during the online verification under ‘operation clean money’, found that the assessee had deposited cash amounting to Rs.42,95,897/- in his bank account during the demonetization period. Since there was no reply on the part of the assessee, the Assessing Officer viewed that the entire cash deposits credited in the accounts i.e. State Bank of India and Post Office by the assessee amounting to Rs.2,15,03,053/- as unexplained money and added the same to the total income of the assessee by making an assessment order u/s 144 of the Act.
Dissatisfied with the above order, the assessee preferred an appeal before the ld. CIT(A) against the assessment order. However, before the ld. CIT(A) also, the assessee has failed to appear to prove his case. As there was no compliance, the ld. CIT(A) upheld the order of the Assessing Officer by dismissing the appeal of the assessee.
Aggrieved by the said order, the assessee filed the present appeal before this Tribunal raising various grounds. However, the primary contention of the ld. AR is that both the orders of the lower authorities are ex parte orders and the assessee did not properly comply with the notices issued by the ld. CIT(A) and Assessing Officer as the assessee was suffering from illness and due to serious medical condition, he could not turn up properly before the authorities below. The ld. AR also furnished certain documents containing various particulars in support of his claim in form of paper-book before the Bench, which are as under:
“1. Copy of the Provisional Trading & Profit & Loss Account and Balance Sheet of the assessee for AY 2017-18. 2. Copy of the Comparative Statement of last 5 years of GP percentage and NP percentage.
Assessment Year: 2017-18 Ranjay Kumar Diwakar 3. Copy of the return filing acknowledgement along with computation of income and balance sheet and tax audit report of the assessee for AY 2015-16.
Copy of the return filing acknowledgement along with computation of income and balance sheet of the assessee for AY 2016-17.
Copy of the return filling acknowledgement along with computation of income and balance sheet and tax audit report of the assessee for AY 2018-19.
Copy of the Statement of Facts and Grounds of Appeal
before the CIT(A)
7. Copy of the assessment order u/s 144 dated 21.12.2019 in the case of the assessee for AY 2017-18. 8 Copy of the order of the CIT(A) dated 12.9.2023 for AY 2017-18”
5.1 The ld. AR has submitted that the assessee has ample chances to succeed the case if the matter be remanded back. He, therefore, prayed before the Bench that the instant issue may be set aside to the file of the Assessing Officer with a direction to reexamine the issue afresh after affording reasonable opportunity of being heard to the assessee.
The ld. DR supported the decisions rendered by the authorities below.
We, after hearing both the parties and perusing the materials available on record, find that the assessee has produced certain documents in order to substantiate his claim before the Bench. In the interests of justice and fair play, we feel it justified to remand the whole issue back to the file of the Assessing Officer to re-examine the case after providing reasonable opportunity of being heard to the assessee. The Assessing Officer is directed to pass a fresh order after verifying the documents submitted by the assessee. The assessee is also directed to fully cooperate and comply all notices during the remand proceedings without any fail.
Kolkata, the 7th February, 2025.
Sd/- Sd/- [Rakesh Mishra] [Sonjoy Sarma] लेखा सद�य/Accountant Member �या�यक सद�य/Judicial Member Dated: 07.02.2025. RS Copy of the order forwarded to: 1. Ranjay Kumar Diwakar 2. ITO, Ward-2(5), Bihar Sharif 3. CIT(A)- 4. CIT- , 5. CIT(DR),