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Facts
The assessee appealed against an ex parte order of the Ld. CIT(Appeals) for AY 2017-18, which sustained additions for cash deposits and introduction of capital as unexplained cash credit under section 68 of the Act. The assessee contended that adequate opportunity of being heard was not provided by the CIT(A).
Held
The Tribunal noted that while the CIT(A) had provided opportunities, the final order was passed ex parte. Considering the counsel's undertaking to cooperate, the appeal was restored to the CIT(A) for fresh adjudication after providing adequate opportunity of being heard to the assessee.
Key Issues
Whether the ex parte order passed by the CIT(A), sustaining additions under Section 68, should be set aside and remanded for fresh adjudication with adequate opportunity to the assessee.
Sections Cited
68
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH “SMC” NEW DELHI
Before: SHRI CHALLA NAGENDRA PRASAD
सुनवाईक�तारीख/ Date of hearing: 11.03.2024 22.05.2024 उ�ोषणाक�तारीख/Pronouncement on आदेश /O R D E R
This appeal is filed by the assessee against the order of the Ld.CIT(Appeals) – NFAC, Delhi dated 12.10.2023 for the AY 2017-18. Assessee challenged the order of the Ld. CIT(Appeals) in sustaining the addition made towards the cash deposits as well as the addition made towards introduction of capital as unexplained cash credit u/s 68 of the Act.
Ld. Counsel for the assessee submits that the order was passed by the Ld.CIT(A) ex parte without providing adequate opportunity to the assessee. Ld. Counsel requested that the appeal 1
I.T.A.No.3573/Del/2023 may be restored to the file of the Ld.CIT(Appeals) for fresh adjudication to which the Ld. DR expressed no serious objection.
On perusal of the Ld.CIT(Appeals) order, it is observed that the assessee was provided with three opportunities and on one of the occasions the assessee sought an adjournment and there was no response from the assessee on the other two occasions where the appeal was fixed for hearing on 22.04.2022 and 15.09.2023.
Considering the rival submissions and the undertaking filed by the Ld. Counsel on behalf of the assessee that assessee would cooperate with the proceedings before the Ld. CIT(Appeals) this appeal is restored to the file of the Ld.CIT(A) for fresh adjudication after providing adequate opportunity of being heard to the assessee.
In the result, appeal of the assessee is allowed for statistical purpose.
Order pronounced in the open court on 22/05/2024