GUNIT SINGH TUTEJA, RAIPUR,RAIPUR vs. INCOME TAX OFFICER-4(1), RAIPUR, RAIPUR

The brief facts in this case are that the assessee had e-filed his return of income for the year under consideration declaring total income at Rs.3,02,680/-. Assessment was completed by the A.O vide his order passed u/s. 143(3) of the Income Tax Act, 1961 (for short ‘the Act’) after making an addition of Rs.40,00,000/- pertaining to cash deposits during the demonetization period, the source of which was not explained by the assessee.

That being aggrieved, the assessee carried the matter in appeal before the Ld. CIT(Appeals)/NFAC. It is noted that as per Para 4 of the impugned order, the Ld.CIT(Appeals)/NFAC vide an ex-parte order had dismissed the appeal of the assessee due to non-compliance by the assessee. For the sake of clarity, Para 4 of the Ld.CIT(Appeals)/NFAC order is culled out as follows: “4. Decision: 4.1 The appeal was filed by the assessee against the order u/s.143(3) of the IT Act, 1961 dated 12.12.2019. In connection to the appeal, opportunities were provided to the

In this regard, the Ld. Sr. DR has fairly conceded that the matter may be adjudicated denovo on merits before the first appellate authority providing one final opportunity to the assessee.

I have heard the submissions of the parties herein and carefully considered the contents in the documents/material available on record. As per the aforesaid examination of the entire spectrum of the matter in the interest of natural justice, I deem it fit and proper to provide one final opportunity to the assessee to represent his case on merits before the Ld. CIT(Appeals).

In the overall spectrum of the ex-parte order being passed due to non-compliance by the assessee before the Ld.CIT(Appeals)/NFAC, I refer to the order of the ITAT, “Division Bench”, Raipur in the cases of Brajesh Singh Bhadoria Vs. Dy./ACIT, Central Circle-2, Naya Raipur, IT(SS)A Nos.1 to 6, 8 & 9/RPR/2025, dated 20.03.2025 wherein the Tribunal had dealt with similar issue on the same parameters of ex-parte order passed by the Ld. CIT(Appeals)/NFAC and remanded the matter back to the file of the Ld. CIT(Appeals)/NFAC.

Respectfully following the aforesaid order on same parity of reasoning, I am providing one final opportunity to the assessee to represent his case before the first appellate authority. Accordingly, I set- aside the order of the Ld. CIT(Appeals)/NFAC and remand the matter back to its file for denovo adjudication as per law while complying with the principles of natural justice. The Ld. Counsel for the assessee made a statement at bar that the source of cash deposits was from his past earnings and accumulated savings and that the assessee shall make further submissions before the Ld. CIT(Appeals)/NFAC.

Before parting with this matter it is stated that if the assessee fails to comply with hearing notices before the Ld. CIT(Appeals)/NFAC or the assessee fails to explain source of the cash deposits the additions are to be sustained.

As per the above terms, the grounds of appeal raised by the assessee stands allowed for statistical purposes.

In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in open court on 20th day of June, 2025.