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Facts
The assessee deposited Rs. 28.14 lakhs in a bank account during F.Y. 2011-12 but failed to explain the source of the cash deposits despite notices, leading the AO to complete the assessment on a total income of Rs. 30.33 lakhs. The CIT(A) subsequently dismissed the assessee's appeal for non-representation, without adjudicating the case on its merits.
Held
The Tribunal observed that the CIT(A) dismissed the appeal for non-representation and therefore remanded the matter back to the CIT(A) for adjudication on merits. The assessee is to be given a reasonable opportunity of hearing and is directed to provide all documentary evidence and cooperate in the appellate proceedings. The appeal before the Tribunal was allowed for statistical purposes.
Key Issues
Whether the CIT(A) was justified in dismissing the appeal for non-representation without adjudicating on merits and providing adequate opportunity of hearing, especially concerning additions made for unexplained cash deposits.
Sections Cited
250, 147, 144, 148, 151, 282
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Income Tax Appellate Tribunal, AMRITSAR BENCH, AMRITSAR.
Before: SH. MANOJ KUMAR AGGARWAL & SH. UDAYAN DASGUPTA
ORDER Per: Udayan Dasgupta, J.M.: This appeal is filed by the assessee against the order of ld. CIT (A), NFAC, Delhi, passed u/s 250 of the Act, 1961 vide order dated 19.01.2024 which has emanated from the order of AO, Ward, Nawanshahr, passed u/s 147 r.w.s. 144 of the Act, vide order dated 11.11.2019. 2. Condonation of delay: It is pointed out by the Registry that this appeal is filed belatedly by 144 days.
The grounds of appeal
taken by the assessee in form no. 36 are as under: “1. That the order passed by the Hon’ble CIT(A) dated 19.01.2024 is’ against the law and facts of the case.
2. Thal having regard to the facts and circumstances of the ease. Hon’ble CIT(A) has erred in law and on facts in confirming the action of Ld. AO in framing the impugned assessment order u/s 144 r.w.s 147of the Act and without complying with the mandatory conditions us 144 148 151 as envisaged under the Income Tax Act. 1961.
3. That having regard to the facts and circumstances of the case. Hon’ble CIT (A) has erred in law and on facts in confirming the action of Ld. AO in passing order without giving adequate opportunity of hearing.
4. Thal having regard to the facts and circumstances of the ease. Hon'ble (11(A) has erred in law and on facts in confirming the action of Id. AO in making an addition of Rs. 28,14,000 -. on account of cash deposits in bank account, without considering the facts of the case and without observing the principles of natural justice.
5. That the appellant craves the leave to add. modify, amend or delete any of the grounds of appeal the lime of hearing and all the above grounds are without prejudice lo each other.”
There are five grounds of appeal
taken by the assessee and one of the grounds agitated upon is that the first appellate authority has not allowed sufficient opportunity of hearing to the assessee tot explain his case.
5. Brief facts of the case are that the assessee has deposited an amount of Rs.28.14 lakhs in his bank account during the F.Y. 2011-12(relevant to the year under appeal) and in absence of any response to various notices issued by the department and in failure to explain the source of cash deposit in bank account the assessment has been completed on a total income of Rs.30.33 lakhs (which include an amount of Rs.28.14 lakhs being the cash deposit in bank plus the returned income of Rs.1,75,000/-).
6. The matter was carried in appeal and the ld. first appellate authority has dismissed the same in absence of any response to notice of hearing issued to the assessee from the office of the ld. First appellate authority on 3 (three) separate dates, through e-mail yogeshromesca@yahoo.com .
7. During the course of hearing before the tribunal there was no representation on the part of the assessee or his counsel and only an adjournment application has been filed by his ld. AR for adjournment of hearing.
8. The ld. DR is present in the court.
9. We find that the appeal has not been adjudicated on merits on the ground contained in the form 35 and the first appellate authority has dismissed the appeal for non-representation. As such, we are of the opinion that no purpose will be served by adjourning this case, and we remand the matter back to the file of the ld. CIT(A) for adjudication on the ground contained in form 35 on merits of the case and we also direct the assessee to file all documentary evidences and submissions in support of his contention and to fully cooperate in appellate proceedings. 9.1 The assessee will be allowed reasonable opportunity of being heard and notice to be issued as per provisions of section 282 of the Act, and also to the e-mail id provided in form 35. 9.2 As a result, the appeal of the assessee is allowed for statistical purposes.
We have not expressed any opinion on merits of the case.
In the result, the appeal of the assessee is allowed for statistical purposes.