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Facts
The assessee appealed against an order of the CIT(A) for AY 2011-12, which confirmed an AO's addition of Rs.31.85 Lacs for cash deposits. The CIT(A) had not admitted the appeal due to delay and upheld the assessment on merits because the assessee failed to comply with hearing notices.
Held
The Tribunal, applying principles of natural justice, restored the appeal to the CIT(A) for de novo adjudication, granting the assessee another opportunity to present its case. The CIT(A) was specifically directed not to raise the issue of delay.
Key Issues
Whether the assessee should be granted another opportunity of hearing before the CIT(A) for a de novo adjudication, despite the appeal being dismissed earlier for delay and non-compliance with notices.
Sections Cited
143(3), 263
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Income Tax Appellate Tribunal, “SMC” BENCH, CHANDIGARH
O R D E R
Aforesaid appeal by assessee for Assessment Year (AY) 2011-12 arises out of an order of learned Commissioner of Income Tax (Appeals), NFAC [CIT(A)] dated 31-05-2024 in the matter of an assessment framed by Ld. Assessing Officer [AO] u/s 143(3) r.w.s. 263 of the Act on 29-03-2022. The only prayer of Ld. AR is another opportunity of hearing before Ld. CIT(A) which has been opposed by Ld. Sr. DR.
It emerges that Ld. AO made addition of cash deposits for Rs.31.85 Lacs after rejecting assessee’s submissions. The Ld. CIT(A) did not admit the appeal for delay and also confirmed the assessment on merits since the assessee did not comply with hearing notices. Aggrieved, the assessee is in further appeal before us.
Keeping in mind the principles of natural justice, I deem it fit to accept the prayer of Ld. AR. Accordingly, the appeal is restored back to Ld. CIT(A) for de novo adjudication with a direction to the assessee to plead and prove its case forthwith. The issue of delay would not be raised by Ld. CIT(A).
The appeal stands allowed for statistical purposes. Order pronounced on 06th January, 2026.