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Facts
The assessee filed a return for AY 2015-16. The AO initiated reassessment proceedings under Section 147 upon finding undisclosed income from house property, cooperative bank interest, and fixed deposits. Despite notices under Section 148 and 142(1), the assessee did not comply, leading the AO to make additions and complete the assessment under Section 147 r.w. Section 144. The CIT(A) upheld the AO's action and dismissed the assessee's appeal ex-parte due to continued non-compliance.
Held
The Tribunal observed that the CIT(A) dismissed the appeal ex-parte, confirming the AO's additions due to the assessee's non-compliance. However, recognizing the principles of natural justice and potential reasons for non-appearance, the Tribunal set aside the CIT(A)'s order. The entire disputed issues were remitted back to the CIT(A) for fresh adjudication on merits, granting the assessee another opportunity of hearing.
Key Issues
Whether the CIT(A) was justified in dismissing the assessee's appeal ex-parte due to non-compliance; and whether the additions made by the AO under reassessment proceedings were sustainable without providing adequate opportunity to the assessee.
Sections Cited
Section 147, Section 144, Section 250, Section 148, Section 142(1)
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Income Tax Appellate Tribunal, PANAJI BENCH
Before: SHRI PAVAN KUMAR GADALE & SHRI G D PADMAHSHALI
सुनवाई क� तार�ख/Date of Hearing 08.04.2025 घोषणा क� तार�ख/Date of Pronouncement 09.04.2025 ORDER
PER PAVAN KUMAR GADALE ,JM:
The assesse has filed the appeal against the order of the NFAC/CIT(A) Delhi passed u/sec147 r.w.s144 and u/sec 250 of the Act. The assessee has raised the grounds of appeal
challenging the ex-parte order of the CIT(A) sustaining the additions made by the Assessing Officer.
2. The brief facts of the case are that, the assesse has filed the return of income for the A.Y.2015-16 disclosing a total Sangeeta Sunil Jolapure. income of Rs.2,82,400/- on 22.07.2015.The Assessing Officer (AO) based on the information found that the assessee has not disclosed the income from house property, interest income from cooperative bank and fixed deposits with the bank. The assessing officer has reason to believe that the income has escaped the assessment and has issued notice u/sec148 of the Act and also the notice u/sec142(1) of the Act was issued to furnish the details and sources of investments and there was no compliance. Whereas the A.O found that the assesse has made (i) fixed deposit of Rs.50,00,000/-in the bank and received interest income of Rs.8.35.837/- and income from house property as per ITS details of Rs.2,50,000/- were not offered for tax and explanations were called to substantiate the sources of deposit and were remain unexplained. Since, no explanations/details were filed, the AO considering the information available on record has invoked the provisions of Sec.144 of the Act and made additions and assessed the total income of Rs.63,68,237/- and passed the order u/sec147r.w.s 144 of the Act dated 15.09.2021.
Aggrieved by the order, the assesse has filed an appeal before the CIT(A), whereas the CIT(A) has considered the grounds of appeal, statement of facts and findings of the AO and has issued notices of hearing and since there was no compliance by the assessee to notices. Therefore the CIT(A) considering the information on record has confirmed
We heard the Ld.DR submissions and perused the material on record and none appeared on behalf of the assesse. Prima-facie the CIT(A) has passed the order considering the fact that there is no compliance in spite of providing adequate opportunity of hearing and the notices were issued. Therefore, the CIT(A) was of the opinion that the assessee is not interested in prosecuting the appeal and dismissed the appeal ex-parte confirming the action of the assessing officer. The Ld. CIT(A) has issued the notices of hearing referred at Page 4 Para 6 of the CIT(A) order but there was no response and thus the Ld.CIT(A) came to a conclusion that the assessee is not interested and decided the appeal based on the information available on record. Whereas the assessee has raised grounds of appeal challenging the additions by the A.O and there could be various reasons for non appearance which cannot be overruled. Therefore, considering the principles of natural justice, we shall provide with one more opportunity of hearing to the assessee to substantiate the case with evidences and information. Accordingly, set aside the order of the CIT(A) and remit the entire disputed issues to the file of the CIT(A) to adjudicate afresh on merits and the assessee should be provided adequate opportunity of hearing and shall cooperate in submitting the information
In the result, the appeal filed by assesse is allowed for statistical purposes.
Order pronounced in the open court on 09.04.2025.