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Facts
The assessee, a cooperative society, failed to represent its case before the Assessing Officer (AO) and the Commissioner of Income Tax (Appeals) (CIT(A)). The AO had made an addition based on unexplained income from four savings bank accounts.
Held
The Tribunal noted that both the orders from the AO and CIT(A) were ex-parte. In the interest of justice, the appeal was restored to the file of the AO for readjudication, subject to the assessee paying a cost of Rs. 1,00,000/- to the ITAT Bar Association within 60 days.
Key Issues
Whether the ex-parte orders passed by the lower authorities should be set aside and the case restored to the AO for readjudication.
Sections Cited
Income Tax Act
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Income Tax Appellate Tribunal, CUTTACK BENCH CUTTACK
Before: SHRI GEORGE MATHAN & SHRI RAJESH KUMAR
(नििाारण वर्ा / Assessment Year : 2019-2020) Pahanga SCS Vs ITO, Ward- Jajpur, Jajpur AT & P.O:- Pahanga, Jajpur, 755015 PAN No. : AABAP 6206 H (अपीलार्थी /Appellant) (प्रत्यर्थी / Respondent) .. नििााररती की ओर से /Assessee by : Shri Nihar Ranjan Biswal, AR राजस्व की ओर से /Revenue by : Shri Vijay Singh, Sr. DR सुनवाई की तारीख / Date of Hearing : 25/09/2025 घोषणा की तारीख/Date of Pronouncement : 25/09/2025 आदेश / O R D E R Per Bench : This is an appeal filed by the assessee against the order of the Ld. CIT(A), National Faceless Appeal Centre (NFAC),Delhi dated 23/06/2025 passed in Appeal No. NFAC/2018-19/10412282 for the assessment year 2019-2020.
It was the submission of the ld. AR that the assessee is a cooperative society and the assessment in the case of the assessee came to be completed wherein the deposits of the assesee with the four saving bank accounts maintained by the assessee at Cuttack Central Cooperative Bank Limited, has been treated as the unexplained income of the assessee. It was the submission that, unfortunately, the assesee had not represented its case before the AO and the Ld.CIT(A). It was the prayer that the issues may be restored to the file of the AO for readjudication and the assessee would cooperate in the set aside proceedings.
In reply, ld. Sr. DR did not raise any serious objection in regard to the submission of ld. AR for setting aside the issues to the file of the ld. AO.
We have considered the rival submissions. A perusal of the order of the Ld.CIT(A) and that of the AO, shows that the both the orders are ex- parte orders. It is also noticed that the AO has made the addition in respect of cash deposits in the four SB accounts maintained by the assessee with Cuttack Central Co-operative Bank Limited. As it is noticed that the assessee has been non-cooperative before the lower authorities, in the interest of justice, we are of the view that the issues in this appeal must be restored to the file of the AO for readjudication after granting the asssessee adequate opportunity of being heard, subject to a cost of Rs.1,00,000/-(Rupees One Lakh only) payable by the assessee to the Income Tax Appellate Tribunal Bar Association, Secor-1, CDA, Cuttack, Odisha-7453014 within 60 days from the date of this order and production of the evidence of such payment shall be made within the specified time before the AO at the time of hearing. If the assessee does not make the payment within in the stipulated time or in the respect of the specified amount, the order of the Ld.CIT(A) shall stand confirmed.