OMPRAKASH CHOUDHARY,KOTLA MUBARAKPUR vs. ITO WARD 53(4), NEW DELHI

This assessee’s appeal for assessment year 2014-15, arises against the Commissioner of Income Tax (Appeals)-National Faceless Appeal Centre [in short, the “CIT(A)-NFAC”], Delhi’s DIN and order no. ITBA/NFAC/S/250/2023-24/1056778808(1), dated 04.10.2023 involving proceedings under section 143(3) of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’).

Heard both the parties at length. Case file perused.

It emerges during the course of hearing that the CIT(A)-NFAC has passed its ex-parte lower appellate order affirming the Assessing Officer’s action making section 68 unexplained cash credits/deposits addition of Rs.1,84,70,000/- in his hands; in assessment dated 30th December, 2016.

The Revenue vehemently argues in support of the CIT(A)’s impugned lower appellate findings that the assessee had been afforded numerous opportunities, which he failed to avail and, therefore, we ought to confirm the impugned addition. The assessee’s case, on the other hand, is that he was prevented on account of circumstances beyond his control, which forms a reasonable cause for his non-appearance/non-cooperation in the lower appellate proceedings.

Be that as it may, we are of the considered view that larger interest of justice would be met in case the assessee is afforded one more effective opportunity before learned CIT(A)/NFAC to plead and prove its case so as to explain source of the impugned cash deposits added in his hands. We order accordingly subject to a rider that it shall be assessee’s risk and responsibility only to plead and 2 | P a g e prove all the relevant facts within three effective opportunities in consequential proceedings.