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Facts
The assessee, an individual earning agricultural income, made significant cash deposits in FY 2015-16 without filing a return. The AO initiated reassessment under Section 147/148, making additions under Section 69A and other heads, assessing income at Rs. 60,67,398. The CIT(A) dismissed the assessee's appeal ex-parte due to non-compliance with notices.
Held
The Tribunal, applying principles of natural justice, set aside the ex-parte order of the CIT(A). It remitted the matter back to the CIT(A) for fresh adjudication, directing that the assessee be given a further opportunity to present their case and cooperate in submitting necessary information.
Key Issues
Whether the CIT(A) was justified in dismissing the appeal ex-parte without providing adequate opportunity, and if the principles of natural justice warrant a fresh adjudication.
Sections Cited
147, 144B, 250, 148, 142(1), 133(6), 69A
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, PANAJI BENCH
ORDER
PER PAVAN KUMAR GADALE, JM:
The appeal is filed by the assesse against the order of National Faceless Appeal Centre (NFAC) Delhi / CIT(A) passed u/sec 147 r.w.s 144B and u/sec 250 of the Act.
The brief facts of the case are that, the assesse is an individual and derives agricultural income. The Assessing Officer (AO) based on the information from ITBA data, found that the assesse has made cash deposits in the bank accounts during the F.Y.2015-16 and the assesse has not filed the return of income. The asseing officer has reason to believe that the income has escaped the assessment and Babu Gurunath Kalal. issued notice u/sec148 of the Act. In compliance, the assessee has filed the return of income disclosing a total income of Rs.Nil and net agricultural income of Rs.9,29,820/-. Further the notice u/sec 142(1) of the Act along with questionnaire was issued and there was partial compliance. Whereas the A.O found that the assesse has made the cash deposits of Rs.63,38,500/- in the bank accounts in the F.Y.2015-16 and explanations were called to substantiate the deposits. Since,partial explanations/details were filed, the AO considering the information available on record has issued the notice u/sec133(6) of the Act on the bank. Finally the A.O. has considered the facts and information and made addition(i) u/sec69A of the Act of Rs.53,67,464/- (ii) variation in disclosing of agricultural income of Rs.5,39,436/- (iii) intrest income of Rs.52,498/-and (iv) income of Rs.1,08,000/- under income from other sources and assessed the total income of Rs.60,67,398/- and passed the order u/sec 147 r.w.s 144B of the Act dated 07.02.2024.
Aggrieved by the order, the assessee 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 the action of the A.O and dismissed the appeal. Aggrieved
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 nor appearance in spite of providing adequate opportunity of hearing and the notices were issued. Therefore, the CIT(A) was of the opinion that the assesse is not interested in prosecuting the appeal and dismissed the appeal ex-parte confirming the action of the assessing officer. The CIT(A) has issued the notices of hearing referred at page 3 Para 4.2 of the order and 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 assesse has raised grounds of appeal challenging the additions made by the A.O and there could be various reasons for non appearance which cannot be overruled. Therefore, considering the facts and 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, we set aside the order of the CIT(A) and remit the entire disputed issues to the file of the CIT(A) to adjudicate afresh and the assesse should be provided adequate opportunity of hearing and shall cooperate in submitting the information for early disposal of the
In the result, the appeal filed by assessee is allowed for statistical purposes.
Order pronounced in the open court on 19.02.2025.