ANIL TYAGI,MEERUT vs. ITO,WARD-1(1), MEERUT

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ITA 1524/DEL/2024Status: DisposedITAT Delhi21 August 2024AY 2012-13Bench: SHRI VIKAS AWASTHY (Judicial Member), SHRI NAVEEN CHANDRA (Accountant Member)4 pages

AI SummaryRemanded

Facts

The assessee, an agriculturist, faced reopening of assessment for AY 2012-13 based on AIR information, leading to an addition of Rs. 31,09,750/- as unexplained cash credit under Section 144 r.w.s 147. The assessee appealed to the CIT(A) after initially failing to appear before the AO due to alleged lack of notice. Subsequently, the assessee also failed to appear before the CIT(A), citing the Covid-19 pandemic, which resulted in the CIT(A) upholding the additions ex-parte.

Held

The Tribunal found the assessee's plea of non-appearance for later notices (2023) due to Covid-19 unsustainable and attributed it to negligence. However, considering the assessment was framed ex-parte u/s 144 and the assessee's potential to explain the source of funds, the Tribunal restored the matter to the AO for a de novo assessment, granting a reasonable opportunity to the assessee. The assessee was also directed to pay costs of Rs. 5,000/- for non-compliance.

Key Issues

Whether the ex-parte additions confirmed by the CIT(A) should be set aside and the matter remitted to the AO for a de novo assessment, considering the assessee's claims of lack of opportunity before the AO and the impact of the Covid-19 pandemic on appearance before the CIT(A).

Sections Cited

144, 147, Rule 32A(2) of Income Tax (Appellate Tribunal) Rules, 1963

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH “A”, DELHI

Hearing: 14/08/2024Pronounced: 14/08/2024

(A.Y.2012-13) Anil Tyagi, C/o Kashyap & Co. 114, Citi Centre, B.B Road, Meerut, UP 250001 ...... अपीलाथ�/Appellant PAN: AFQPT-5098-A बनाम Vs. Income Tax Officer, Ward-1(1), Aaykar Bhawan, Bhainsali Ground, ..... �ितवादी/Respondent Delhi Road, Meerut, UP 250001 अपीलाथ� �ारा/ Appellant by : Shri PS Kashyap, Chartered Accountant �ितवादी�ारा/Respondent by : Shri Kanv Bali, Sr.DR सुनवाई क� ितिथ/ Date of hearing : 14/08/2024 घोषणा क� ितिथ/ Date of pronouncement : 14/08/2024 आदेश/ORDER

PER VIKAS AWASTHY, JM:

This appeal by the assessee is directed against the order of Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi [in short ‘the CIT(A)’] dated 08.02.2024, for Assessment Year 2012-13.

Shri PS Kashyap appearing on behalf of the assessee submitted that the assessee is an agriculturist. The assessment in the case of assessee was reopened on the basis of AIR information and addition of Rs. 31,09,750/- was made in the hands of assessee on account of unexplained cash credit. The assessment order was passed u/s. 144 r.w.s 147 of the Income Tax Act, 1961 (hereinafter referred to as 'the Act'). The assessee failed to appear before the Assessing Officer (AO) as no notice was served upon the assessee. Aggrieved against the assessment order dated 13.12.2019, the assessee filed appeal before the CIT(A). Immediately after filing of appeal, due to outbreak of Covid-19 pandemic the assessee could not appear before the CIT(A). The CIT(A) in ex-parte proceedings, upheld the additions made in assessment order. The ld. Counsel submitted that the assessee has prima facie good case in his favour. The assessee would be able to explain the source of funds, if an opportunity to appear before the AO is granted.

Shri Kanv Bali representing the department strongly supported the impugned order. He pointed that the CIT(A) had issued notices to the assessee after Covid-19 pandemic was over in the year 2023. The assessee failed to appear before the CIT(A)in 2023 either.