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Facts
The assessee filed an income tax return for AY 2017-18, declaring an income of Rs. 3,96,670/-. The case was selected for scrutiny, and an assessment order was subsequently passed, treating Rs. 1,09,45,000/- as unexplained money under section 69A of the Income Tax Act. The assessee's appeal before the CIT(A) against this assessment order was dismissed ex-parte on 26.10.2023.
Held
The Tribunal found that the CIT(A) passed the ex-parte order without discussing the case on its merits or deciding the grounds of appeal, which violated the principles of natural justice. Therefore, the Tribunal remanded the matter back to the Ld. CIT(A) for a fresh, de-novo adjudication on the merits of the appeal.
Key Issues
Whether the ex-parte dismissal by the CIT(A) without deciding the appeal on merits was justified, and if the case should be remanded for fresh adjudication.
Sections Cited
143(2), 142(1), 69A
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH ‘B’: NEW DELHI
Before: SHRI PRADIP KUMAR KEDIA & SHRI YOGESH KUMAR U.S.
This appeal is filed by the Assessee against the order of Learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC) [“Ld. CIT(A)”, for short], dated 26/10/2023 for the Assessment Year 2017-18.
Brief facts of the case are that the assessee filed return of income declaring total income of Rs. 3,96,670/-. The case was selected for scrutiny and notice under section 143(2) and 142(1) of the Income Tax Act, 1961
Page 1 of 4 Hari Babu, New Delhi (hereinafter referred to as ‘the Act’) were issued. An assessment order came to be passed by treating an amount of Rs. 1,09,45,000/- as unexplained money under section 69A of the Act vide assessment order dated 28.12.2019. As against the assessment order dated 28.12.2019, the assessee preferred an appeal before the Ld. CIT(A). The Ld. CIT(A) vide order dated 26.10.2023, dismissed the appeal filed by the assessee ex-parte which is under challenge before us by the assessee.
The Ld. Counsel for the assessee submitted that the order impugned passed by the Ld. CIT(A) is against to the principles of natural justice, therefore, sought for remanding the matter to the file of the Ld. CIT(A) for fresh adjudication. 3.1 Per contra, Ld. DR submitted that sufficient opportunities have been given to the assessee, but the assessee failed to avail the same before the Ld. CIT(A) for which the assessee cannot find fault with the order of the ld. CIT(A). By relying on the order of the ld. CIT(A), Ld. DR sought for dismissal of the appeal of the Assessee.
We have heard the parties and perused the material. The Ld. CIT(A) before passing the order impugned has issued three notices. Ultimately the order impugned came to be passed on 26.10.2023 ex-parte wherein the Ld. CIT(A) except citing the entire provision of Section 69A of the Act and certain judgments, not discussed the case on merit and not decided the grounds of Appeal
of the assessee. Considering the fact that the order of Ld. Page 2 of 4. Hari Babu, New Delhi CIT(A) has been passed ex parte without deciding the appeal of the assessee on merit, we remand the issue to the file of the Ld. CIT (A) for de-novo adjudication of the appeal. Accordingly, the Ground of appeal
No. 1 of the assessee is partly allowed. Since we have restored the appeal to the file of the CIT(A), other grounds of appeal on merits requires no adjudication.