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Facts
The assessee deposited Rs. 11,69,525/- cash in a bank account but did not file an Income Tax Return. The AO reopened the assessment under s. 148, made an addition for the unexplained cash deposit, and assessed total income at Rs. 13,13,525/-. The CIT(A) subsequently dismissed the assessee's appeal ex-parte due to non-appearance.
Held
The Tribunal noted that the CIT(A) issued back-to-back notices for hearing within a short period of 13 days, which was not a reasonable opportunity. Consequently, the Tribunal set aside the ex-parte order and remanded the case back to the CIT(A) for a fresh decision after providing the assessee a proper hearing.
Key Issues
Whether the CIT(A) erred in dismissing the appeal ex-parte without providing the assessee a reasonable opportunity of hearing.
Sections Cited
148, 143(3), 147
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Income Tax Appellate Tribunal, PUNE BENCH “SMC”, PUNE
Before: SHRI MANISH BORAD & SHRI VINAY BHAMORE
ORDER
PER VINAY BHAMORE, JM:
This appeal filed by the assessee is directed against the order dated 13.03.2025 passed by Ld. Addl./JCIT(A)-1, Chennai [‘Ld. CIT(A)’] for the assessment year 2011-12.
There is delay in filing of the present appeal. We are satisfied with the reasons mentioned in the application for condonation of delay duly supported by an affidavit that the applicant was prevented by sufficient cause for not filing the appeal within the prescribed time limit. After hearing Ld. DR, we condone the delay and proceed to adjudicate the appeal.
The appellant has raised the following grounds of appeal :-
1. Addition made by AO is bad in law and need to be dropped. Income derived from business can never be 100 percent and hence entire cash deposited cannot be treated as income of employer or assessee.
2. The appellant craves to add, delete, modify, withdraw any of the grounds before or at the time of hearing of the appeal.”
4. Facts of the case, in brief, are that the assessee is an individual and his case was reopened on the basis of information that he has deposited cash to the extent of Rs.11,69,525/- in Savings Bank Account maintained with Dena Bank and has not furnished his return of income. Accordingly, notice u/s 148 of the IT Act was issued to the assessee and in response to the same return of income was furnished on 17.11.2018 by the assessee declaring an income of Rs.1,44,000/-. Not being satisfied with the submission of the assessee, the Assessing Officer completed the assessment u/s 143(3) r.w.s. 147 of the IT Act and determined the total income at Rs.13,13,525/- as against the income retuned by the assessee at Rs.1,44,000/-. The above assessed income includes addition of Rs.11,69,525/- towards unexplained cash deposit in bank account.
5. Being aggrieved with the above assessment order, the assessee preferred an appeal before Ld. CIT(A). Since the assessee remained absent, Ld. CIT(A) dismissed the appeal filed by the assessee.
It is the above order against which the assessee is in appeal before the Tribunal.
We have heard Ld. counsels from both the sides and perused the material available on record. In this regard, we find that Ld. CIT(A) dismissed the appeal for want of prosecution. We further find that Ld. CIT(A) has issued total three notices of hearing i.e. on 26.08.2019, 19.02.2025 and 04.03.2025. Out of above three notices, last two notices of hearing were issued to the assessee in a time period of 13 days which cannot be said to be reasonable opportunity of hearing. We further find that due to issue of back-to- back two notices of hearing in a short span of 13 days, the assessee could not furnish any reply.
Considering the totality of the facts of the case and in the interest of justice & without going into merits of the case, we deem it fit to set- aside the ex-parte order passed by Ld. CIT(A) and remand the matter back to the file of Ld. CIT(A) with a direction to decide the appeal afresh and as per fact and law on all the grounds raised before him after providing reasonable opportunity of hearing to the assessee. The assessee is also hereby directed to respond to the notices issued by Ld. CIT(A) in this regard and to produce relevant submissions, documents and evidences in support of