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Facts
The Assessee appealed against an ex-parte assessment order dated 28/12/2023 for AY 2017-18, where an addition of Rs. 98,77,380/- was made under Section 69A for cash deposits from agriculture income. The Assessee contended that both the A.O. and CIT(A) orders were ex-parte as notices were not sent to the correct address, leading to a violation of natural justice.
Held
The Tribunal observed that both lower authorities passed ex-parte orders due to incorrect addresses on record and the Ld. CIT(A) had not decided the issue on merits. Therefore, the matter was remanded to the A.O. with a direction to frame a de-novo assessment after serving notice to the proper address of the Assessee and providing an opportunity of being heard.
Key Issues
Whether ex-parte assessment orders passed due to incorrect address and violation of natural justice should be remanded for a de-novo assessment.
Sections Cited
69A
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Income Tax Appellate Tribunal, DELHI BENCH ‘G’: NEW DELHI
Before: BEFORE SHRI YOGESH KUMAR U.S. & SHRI AVDHESH KUMAR MISHRA
This appeal is filed by the Assessee against the order of Ld.
Commissioner of Income Tax Appeal/National Faceless Appeal Centre (’NFAC’ for short], dated 28/12/2023 for the Assessment Year 2017-18.
2. The grounds of appeal are as under:-
“1. That the assessing officer has completed the assessment proceedings by making the addition of Rs. 98.77,380/- considering cash deposit from Agriculture
That the assessing officer has completed the assessment proceedings against the principle of natural justice by not giving us reasonable opportunity to submit clarifications or documents and details required to clarify our contention.”
The Ld. Counsel for the Assessee submitted that both the order of the A.O. as well as the order of the Ld. CIT(A) are ex-parte, the authorities below not sent the notice to the registered address, which ultimately resulted in passing the orders impugned in violation of the principles of natural justice and the Assessee came to know about the passing of the impugned order only after the Department initiated recovery proceedings, therefore, sought for allowing the Appeal.
Per contra, the Ld. Departmental Representative submitted that the Assessee failed to appear before the A.O. as well as Ld. CIT(A), thus, relying on the order of the Lower Authorities sought for dismissal of the Appeal. orders wherein the address of the Assessee has been mentioned as ‘To, Suresh Kumar 222 EWS Ridge Wood Estate DLF Phase 4, Near Orchid Squer, Gurgaon, 122002, Haryana, India”
On the other hand, the Assessee contended that the proper address of the Assessee are as under:-
“Chhuchhakwas, Jhajjar, Matan Hail D, Haryana Haryana 124106, 9810108931”
Considering the fact that both the authorities have passed ex- parte order and the Ld. CIT(A) has also not decided the issue involved in the Appeal on its merit we deem it fit to restore the matter to the file of the A.O. Accordingly, the matter is Remanded to the file of the A.O. with a direction to frame de-novo assessment after providing opportunity of being heard to the Assessee by serving the notice to the proper address of the Assessee. The Assessee is also directed to cooperate with the assessment proceedings, accordingly, the appeal of the Assessee is partly allowed for statistical purpose.