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Facts
The assessee filed a return of income for AY 2023-24 and it was selected for scrutiny. The Assessing Officer (AO) noted discrepancies in various issues, including business purchases without TDS, high liabilities, and squaring up of loans. Despite partial submissions from the assessee, the AO found explanations unsatisfactory and made additions to the returned income.
Held
The Tribunal observed that the assessee neither appeared nor filed submissions before the CIT(A) due to issues with their email ID. The Tribunal, in the interest of justice, decided to grant the assessee a final opportunity to present their case before the CIT(A) by setting aside the impugned order.
Key Issues
Whether the assessee should be granted a final opportunity to present their case before the CIT(A) due to prior non-appearance stemming from email issues.
Sections Cited
194Q, 143(2), 142(1)
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Income Tax Appellate Tribunal, ‘C’ BENCH: CHENNAI
Before: SHRI INTURI RAMA RAO & SHRI MANU KUMAR GIRI
आदेश / O R D E R
PER MANU KUMAR GIRI, JM:
This captioned Appeal filed by the Assessee is directed against the orders of the Ld. Commissioner of Income Tax (Appeals), NFAC, Delhi, [CIT(A)] dated 22.09.2025 for Assessment Year 2023-24.
The appellant, an individual, filed his return of income for A.Y. 2023-24 on 04.10.2023 declaring a total income of Rs.20,82,640/-.
The case was selected for scrutiny under CASS on the following (AY 2023-24) Babu Ganga (Vs.) ITO NCC-8(1) issues: (i) business purchases without deduction of TDS u/s. 194Q, (ii) high liabilities in comparison to low income/receipts, and (iii) substantial loans squared up during the year. Accordingly, a notice u/s. 143(2) of the Income-tax Act, 1961 was issued on 19.06.2024 and duly served. Subsequently, notices u/s. 142(1), along with reminder letters, were issued from time to time seeking details and documents relating to the returned income and the issues under examination.
In response, the appellant furnished only partial submissions. Upon examining the reply, the ITR, information available on the Insight Portal, Form 26AS, and the audit report, the Assessing Officer (AO) noted discrepancies on multiple issues for which no adequate details or explanations were provided. Consequently, a show-cause notice was issued proposing variations on several matters, including increase in capital, claim of depreciation, salary payments, claim of standard deduction on rental income, computation of capital gains on sale of immovable property, receipt of unsecured loans, purchases without TDS, and squaring up of loans.
The appellant submitted replies to the show-cause notice. However, the AO found the explanations unsatisfactory with respect to salary (AY 2023-24) Babu Ganga (Vs.) ITO NCC-8(1) payments without TDS, cost of acquisition in the computation of long-term capital gains, receipt of unsecured loans, and squaring up of loans. Accordingly, additions aggregating to Rs.3,57,47,540/- were made to the returned income, and the assessment order was passed on 05.03.2025.
Aggrieved by the assessment order, the assessee filed an appeal before the ld. CIT(A). Vide order dated 22.09.2025, the ld. CIT(A) dismissed the appeal and upheld the additions made by the Assessing Officer.
The assessee has now filed the present appeal before this Tribunal.
The Registry has pointed out a delay of 29 days in filing the appeal. The assessee has explained the reasons for the delay through an affidavit on record. Being satisfied that sufficient cause has been shown, the delay is condoned and the appeal is admitted for adjudication.
At the outset, it is observed that the assessee neither appeared nor filed submissions before the ld. CIT(A), reportedly due to issues relating to the registered email ID.
The ld. Authorised Representative (AR) for the assessee submitted that one more opportunity may be granted to enable the assessee to appear before the ld. CIT(A) and file the necessary documents and submissions.
On the other hand, the ld. Departmental Representative (DR) supported the order of the ld. CIT(A) and sought dismissal of the appeal.
We have considered the rival submissions and perused the orders of the ld. CIT(A) and the Assessing Officer. In the interest of justice, we are of the view that the assessee should be afforded a final opportunity to present his case and place relevant evidence and submissions before the ld. CIT(A). Accordingly, the impugned order is set aside and the matter is restored to the file of the ld. CIT(A) for fresh adjudication on merits. The ld. CIT(A) shall provide the assessee with a reasonable opportunity of being heard. The ld. AR is directed to resolve any issues relating to the email ID and duly inform the correct email address to the authorities. The ld. AR shall also ensure diligent prosecution of the appeal and active participation in the appellate proceedings.