TAJUDDIN KHAN,CUTTACK vs. INCOME TAX OFFICER, CUTTACK

Facts of the case are that the assessee, an individual had not filed the return u/s.139 of the Act. During the year under consideration, the P a g e 1 | 4 assessee was engaged in the business of manufacturing plastic granules from scrap plastics. The Assessing officer noticed that the assessee has deposited cash aggregating to Rs.16,92,000/- in State Bank of India and Rs.54,77,350/- in Axis Bank Limited totalling to Rs.71,69,350/-. Therefore, the Assessing Officer issued notice u/s.148 of the Act to the assessee on 31.3.202023 to file the return. In response to the said notice, the assessee has filed return of income on 19.4.2022 declaring total income of Rs.5,04,860/-. Thereafter, the AO issued notices u/s.143(2) and 142(1) of the Act,. Simultaneously, notice u/s.133(6) of the Act was issued to the concerned banks, but there was no response. Since the total cash deposit in the bank was remained unexplained, the AO treated the same as unexplained money u/s.69A of the Act. Being aggrieved, the assessee carried the matter in appeal but the ld CIT(A) dismissed the appeal for want of representation.

At the time of hearing, ld. Counsel for the assessee stated that the ld CIT(A) has dismissed the appeal without giving adequate opportunity of hearing to the assessee. He prayed before the Bench that the impugned order be set aside and remitted back to the file of ld. CIT(Appeals) for deciding it afresh.

On the other hand, ld Sr DR supported the orders of the lower authorities.

We have heard the rival contentions and perused the material available on record. A perusal of the impugned order clearly shows that as there was no response to the notices to substantiate the claim with documentary evidences and submissions, ld CIT(A) confirmed the addition made by the ld AO. Before us, ld AR undertakes that the assessee will cooperate the proceedings, if the matter is restored back to the file of the ld CIT(A). Considering the facts and circumstances of the case, we are inclined to set aside the order passed by the ld. CIT(Appeals) in order to meet the principle of natural justice, and remit the matter back to his file with a direction to provide one more opportunity of being heard to the assessee. At the same breath, we also hereby caution the assessee to promptly co-operate with the proceedings before the ld CIT(A), failing which the ld CIT(A) shall be at liberty to pass appropriate order in accordance with law and merits based on the materials available on the record. Thus, the grounds raised by the assessee are allowed for statistical purposes

In the result, appeal of the assessee stands allowed for statistical purposes.