BHOOP SINGH,NOIDA vs. ITO, WARD- 1(2), NOIDA

The assessee has taken eight grounds of appeal. However, the grievance of the assessee relates to the sustenance of addition of Rs.10,00,000/- made by the AO on account of unexplained cash deposited.

Facts of the case in brief are that the AO on the basis of AIR information received from CIT(CIB), Kanpur that the assessee had deposited Rs.10,00,000/- in cash in his savings bank account maintained with Bank of India, Bhangel, Noida, had taken the action u/s 147 of the Income Tax Act, 1961 (hereinafter referred to as the Act). The AO 2 Bhoop Singh mentioned that whenever the case was fixed for hearing, the assessee sought adjournment. He, therefore, by considering the non-cooperative attitude of the assessee, made the addition of Rs.10,00,000/-.

Being aggrieved the assessee carried the matter to the ld. CIT(A) who sustained the addition by observing that the case was fixed for hearing on 16.06.2016 but there was no response from the assessee side.

Now the assessee is in appeal. The ld. Counsel for the assessee submitted that no notice of hearing was received by the assessee. Therefore, the ld. CIT(A) was not justified in sustaining the addition by passing the ex-parte order.

In her rival submissions, the ld. Sr. DR supported the orders of the authorities below.

I have considered the submissions of both the parties and perused the material available on the record. In the present case, it is an admitted fact that the AO as well as the ld. CIT(A) passed their respective order ex-parte. The ld. CIT(A) although mentioned that the case was fixed for hearing on 16.06.2016 but nowhere he has pointed out that notice for hearing was served upon the assessee. It is well settled that nobody should be condemned unheard as per the maxim “audi alteram partem”. I, therefore, by keeping in view the principles of natural justice, deem it appropriate to set aside the impugned order and remand the issue back to 3 Bhoop Singh the file of the ld. CIT(A) to be adjudicated afresh in accordance with law after providing due and reasonable opportunity of being heard to the assessee.

In the result, the appeal of the assessee is allowed for statistical purposes. (Order Pronounced in the Court on 13/12/2017)