Loading judgment…
Facts
The assessee's appeal for AY 2013-14 arose from CIT(A)/NFAC's ex-parte affirmation of an Assessing Officer's action, initiating proceedings under sections 147/144 and culminating in a Section 68 unexplained cash credit addition of Rs.1,30,66,071/-. The assessee failed to comply with the CIT(A)/NFAC hearing notice, and the lower appellate authority did not adjudicate the substantive grounds on merits as per Section 250(6) of the Act.
Held
The Tribunal noted that the CIT(A)/NFAC failed to adjudicate the appeal on merits as required by Section 250(6). Considering the larger interest of justice, the Tribunal restored the appeal to the CIT(A)/NFAC for fresh adjudication, granting the assessee three effective opportunities to present their case, with the responsibility to prove all relevant facts resting solely with the assessee.
Key Issues
Whether the CIT(A)/NFAC erred in not adjudicating the appeal on merits concerning a Section 68 unexplained cash credit addition, despite the assessee's non-compliance, necessitating a remand for fresh adjudication.
Sections Cited
147, 144, 68, 250(6)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH ‘A’, NEW DELHI
Before: Sh. Satbeer Singh Godara & Sh. M. Balaganesh
Asstt. Year : 2013-14 Bali Mauo, Vs Income Tax Officer, C/o CA Vaibhav Goel, 75, Navyug Ward-2(1)(1), Market, 1st Floor, Ghaziabad, Ghaziabad-201002 Uttar Pradesh-201001 (APPELLANT) (RESPONDENT) PAN No. CJFPM3344B Assessee by : Sh. Vaibhav Goel, CA Revenue by : Sh. Poojan Rana, Sr. DR Date of Hearing: 19.11.2024 Date of Pronouncement: 05.12.2024 ORDER
Per Satbeer Singh Godara, Judicial Member:
This assessee’s appeal for Assessment Year 2013-14, arises against the order of CIT(A)/NFAC, Delhi dated 07.02.2024 in DIN & Order No. ITBA/NFAC/S/250/2023- 24/1060620285(1) in proceedings u/s 147 r.w.s. 144 of the Income Tax Act, 1961 (in short “The Act”).
We straightaway notice at the outset from a perusal of the assessee’s pleadings and the learned lower authorities respective orders that the CIT(A)/NFAC’s ex-parte detailed discussion has affirmed the Assessing Officer’s action initiating section 148/147 proceedings culminating in section 68 unexplained cash credit addition of Rs.1,30,66,071/- forming subject matter of adjudication before us. Learned counsel first of all submits that although the assessee could not ensure compliance to CIT(A)/NFAC lower appellate hearing notice but 2 Bali Mauo the facts also remains that the CIT(A)/NFAC has nowhere adjudicated his corresponding substantive ground on merits as contemplated u/s 250(6) of the Act requiring points of determination to be framed followed by speaking decision thereupon.
The Revenue on the other hands alleges the assessee’s utter non-cooperation all along to justify the impugned addition.
Faced with this situation, and larger interest of justice, we deem it appropriate to restore the assessee’s instant appeal back to the CIT(A)/NFAC for its afresh appropriate adjudication as per law within three effective opportunities subject to a rider that it shall be his risk and responsibility only to plead and prove all the relevant facts. Ordered accordingly.
This assessee’s appeal is allowed for statistical purpose in above terms. Order Pronounced in the Open Court on 05/12/2024.