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Facts
The assessee, engaged in poultry business, deposited substantial cash (Rs. 7.38 crores) in bank accounts but did not file income tax returns for A.Y. 2014-15 and 2016-17. Reassessment proceedings were initiated, leading to additions based on these deposits. The CIT(A) dismissed the appeals due to the assessee's non-compliance and non-response to notices, which the assessee challenged, claiming a denial of proper hearing opportunity.
Held
The Tribunal acknowledged that notices were sent to the correct email IDs provided by the assessee. However, in the interest of justice, to allow the assessee a fair chance to substantiate his business and explain the source of deposits, the matter was remanded back to the CIT(A) for fresh consideration on merits after providing a reasonable opportunity of hearing.
Key Issues
Whether the CIT(A) provided proper opportunity of hearing to the assessee and the justification of additions without considering the nature of the business and supporting evidence.
Sections Cited
250, 147, 144, 148, 282
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, AMRITSAR BENCH, AMRITSAR
Before: SH. MANOJ KUMAR AGGARWAL & SH. UDAYAN DASGUPTA
Both the appeals are filed by the assessee against the order of the ld. CIT(A) NFAC, Delhi even dated 30.12.2024 passed u/s 250 of the Income Tax Act, 1961 which has emanated from the order of the Assessment Unit, ITD, passed u/s 147 r.w.s.
144 of the Act, 1961 dated 06.03.2023 and 13.03.2023 respectively. main grievance of the assessee is that no proper opportunity of hearing has been granted by the ld. first appellate authority and the appeal has been dismissed without considering the nature of business of the assessee and without proper adjudication of the appeal on merits of the case.
Brief facts emerging from the records are that the assessee is engaged in the business of poultry and in spite of making a cash deposit amounting to Rs.7.38 crores in his Bank A/c No. xxxx000162 with J & K Bank Ltd. during the financial year 2013- 14, no return of income has been filed.
In absence of any compliance to notices issued, reassessment proceedings were initiated u/s 148 dated 25.07.2022 (as per procedure) and eventually on account of no response to subsequent notices, documents were gathered from banks and the assessment have been completed on a total income of Rs. 7.39 crores (with an addition of Rs.7.38 cores being the cash deposit in J & K Bank A/c No. xxxx162, plus an amount of Rs.28,965/- being the cash deposit in A/c No. xxxx12564 plus bank interest of Rs.9,687/-).
The matter caried in appeal has been dismissed by the ld. CIT(A) on account of non-compliance, and non-response to various notices issued to the assessee on various dates in different e-mail ids as evident from (page no. 2) of the appellate order. opportunity has been granted by the ld. first appellate authority. On the date of hearing, there has not been any personal representation by the assessee or his ld. AR, neither physically nor virtually, except a submission that the notices issued in various e-mail ids mentioned in the body of the appellate order does not belong to the assessee and the assessee has never received any notice of hearing and he further stated that the earlier counsel of the assessee to whom notice might have been issued has never informed or intimated the assessee regarding the ongoing appeal process and as such, no representation could be made.
However, he submits that the assessee is engaged in the business of poultry and the entire deposits in cash in his bank account are made out of sale proceeds of the poultry business and he has prayed for an opportunity of hearing to file all documentary evidences before the ld. first appellate authority which according to the assessee has been submitted in course of appellate proceedings which has not been considered.
The ld. D.R. relied on the order of the ld. CIT(A) but pointed out that the notices have been issued in the e-mail id cavaseemahmed@gmail.com on 14.03.2024 and it is the same e-mail id which is mentioned in Form No. 35 and as such, the allegation regarding non issue of notice by the ld. first appellate authority is totally false and baseless. However, he has no objection if the matter is remanded to the ld. first adjudication of the matter.
We have heard the rival submissions and considered the materials on record and we find that the notices from the office of the ld. CIT(A) has been issued to the same e-mail id, which is contained in Form No. 35 cavaseemahmed@gmail.com and we further note that in Form No. 36, the e-mail id contained is that of ahmadcavaseem@gail.com and in the statement of facts submitted, the assessee has already accepted the fact that notices has been received in course of assessment proceedings and for compliance of the same, the matter was handed-over to a tax consultant who has not represented the matter properly with necessary documentary evidences. As such, the question of non-receipt of notice in this case does not arise and the grievance raised by the assessee regarding non receipt of notice of hearing at the assessment stage as well as at the first appeal stage are found to be incorrect.
However, considering the factual aspect of the matter that the assessee is engaged in poultry business and considering the fact that there is huge turnover of the assessee of more than Rs.7.38 crores and no return of income has been submitted in normal course nor in response to notice issued by the department, we are of the opinion that there is an intentional neglect on the part of the assessee in trying to avoid compliance of the provisions of the Act. opportunity should be provided to the assessee to submit all necessary papers, books of accounts and documents in support of his business activity, to prove its existence and to explain the source of bank deposits and as such, we remand the matter back to the files of the ld. first appellate authority to dispose off the grounds contained in Form No. 35 on merits of the case after considering all the submissions and documentary evidences to be submitted by the assessee and the assessee is also directed to fully cooperate in appellate proceedings.
Necessary report may be obtained by the appellate authority as per provisions of law.
The assessee will be allowed reasonable opportunity of being heard and notices to be issued as per provisions of section 282 of the Act and also in the e-mail id in Form No. 35 and in the e-mail id as per available in the portal.
We have not expressed any opinion on merits of the case.
In the result, the appeal of the assessee is allowed for statistical purposes. for A.Y. 2016-17: and all our observations applied mutatis mutandis to this appeal also. Since, we have A.Y. 2014-15, the appeal for this year is also remanded back to the ld. first appellate authority to be considered afresh and the assessee is specifically directed to file all documentary evidences along with the written submissions and produce books of account to substantiate, the existence of business and to fully explain the source of cash deposits in the bank account.
In the result, both the appeals filed by the assessee are allowed for statistical purposes.
Order pronounced in accordance with Rule 34(4) of the Income Tax (Appellate Tribunal) Rules, 1963 as on 27.11.2025