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Facts
The assessee appealed against a CIT(A)/NFAC order for AY 2012-13, which upheld an ex-parte assessment made by the AO under section 144 of the Income Tax Act. This assessment included an addition of Rs. 26,92,000 under section 69 for unexplained cash deposits.
Held
The tribunal, noting potential communication gaps and in the interest of justice, restored the appeal to the CIT(A)/NFAC for fresh adjudication. The assessee is to be given three effective opportunities to present their case and bears the risk and responsibility for proving it.
Key Issues
Legality of ex-parte proceedings by the lower appellate authority; Confirmation of unexplained cash deposit addition under section 69 during a section 144 assessment.
Sections Cited
147, 144, 69
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH ‘SMC’, NEW DELHI
Before: Sh. Satbeer Singh Godara
ORDER This assessee’s appeal for Assessment Year 2012-13, arises against the order of CIT(A)/NFAC, Delhi dated 21.12.2023 in DIN & order No. ITBA/NFAC/S/250/2023- 24/1058965256(1), in proceedings u/s 147 of the Income Tax Act, 1961 (in short “the Act”).
Heard both the parties at length. Case file perused.
It emerges during the course of hearing that the assessee has raised his first and foremost substantive ground challenes legality of learned lower appellate authority order proceeding ex-parte against him thereby confirming the Assessing Officer section 144 assessment making section 69 unexplained investment addition of Rs.26,92,000/- representing his cash deposits in the relevant previous year.
Mahipal Singh 4. Mr. Bansal could hardly dispute that although the assessee has not been able to prove his grievance challenging the learned lower appellate authority ex-parte action against him but at the same time, possibility of some communication gaps in such an eventuality could not be altogether ruled out. Faced with this situation, in the larger interest of justice, the tribunal hereby deems it appropriate to restore the assessee’s instant appeal back to the CIT(A)/NFAC for it’s afresh appropriate adjudication, within three effective opportunities subject to a rider that taxpayer shall plead and prove the case at his own risk and responsibility, in consequential proceedings. Ordered accordingly.
This assessee’s appeal is allowed for statistical purposes. Order Pronounced in the Open Court on 26/12/2024.