SONU, FAZILKA,PUNJAB vs. ASSESSMENT UNIT, JOA ITO WARD 2(3), ABOHAR, PUNJAB

Brief facts emerging from the records are that the assessee has made deposit of cash amounting to Rs.74.4 lakhs in his various bank accounts maintained with Central Bank of India (including current accounts) in the name of M/s Midha Communication and in the name of Sonu and Mr. Bhagvandas and no return has been filed. In course of assessment proceedings, there has not been any response to various notices issued from the department and no explanations has been filed explaining the source of bank deposits. The assessment was ultimately completed on the basis of information gathered from banks and information contained in the Income tax portal (Form No. 26AS) from where it was evident that the assessee has received commission income from various Cellular Companies like Aircel Ltd., Airtel Payments Bank Ltd. and Bharti Hexacom Ltd. and assessment has been completed at a total income of Rs.9.13 lakhs. authority in limine without admitting the appeal for adjudication on merits, refusing to condone the delay in filing of the appeal by 117 days and rejecting the same u/s 249(3) of the Act in absence of sufficient cause.

In course of hearing, there has not been any appearance either by the assessee or his ld. AR in spite of repeated calls either physically or virtually.

However, it is seen that before rejecting the appeal on the grounds of delay, no opportunity of hearing has been allowed to the assessee to put forth his reasons and to explain the cause of delay of 117 days. As such, in the interest of justice, we remand the matter back to the files of the ld. first appellate authority to allow adequate opportunity to the assessee to explain the delay with sufficient reasons and thereafter on satisfactory explanation of the same, the ld. first appellate authority may proceed to dispose of the appeal on merits of the case on various grounds contained therein.

The assessee should be allowed reasonable opportunity of being heard and notices to be issued as per section 282 of the Act and the e-mail id as contained in Form No. 35 and the assessee is directed to file all documentary evidences and submissions and to fully cooperate in appellate proceedings.