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Facts
For AY 2018-19, the AO initiated reassessment proceedings u/s 148A/148 against the assessee for undisclosed financial transactions, making additions totalling Rs. 1,15,69,051/- under sections 68, 69C, and for capital gains, as the assessee did not respond. The CIT(A) dismissed the assessee's appeal ex-parte due to non-compliance.
Held
The Tribunal noted that both the AO's and CIT(A)'s orders were passed ex-parte due to the assessee's non-compliance despite opportunities. The matter was remanded to the AO for fresh examination after providing a reasonable opportunity of hearing, with a direction for the assessee to comply with future notices, otherwise fresh ex-parte orders could be passed. The appeal was allowed for statistical purposes.
Key Issues
Whether the ex-parte assessment and appellate orders, passed due to the assessee's non-compliance, warranted a fresh examination of the additions made under sections 68, 69C, and capital gains.
Sections Cited
Section 250, Section 148A, Section 148, Section 68, Section 69C
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Income Tax Appellate Tribunal, BENCH-RANCHI
Before: Shri Sonjoy Sarma & Shri Ratnesh Nandan Sahay
Assessment Year: 2018-19 Vikash Kumar Tapadia….........................…...........................……….……Appellant Tapadia Compound, Chowk Bazar, Jugsalai (Jharkhand)-831006.. [PAN: ACNPT2711L] vs. ITO, Jamshedpur……………………………….……........……...…..…..Respondent Appearances by: None appeared on behalf of the appellant. Shri Khubchand T. Pandya, Sr. DR, appeared on behalf of the Respondent. Date of concluding the hearing : September 10, 2025 Date of pronouncing the order : September 16, 2025 ORDER
Per Sonjoy Sarma, Judicial Member:
This appeal arises from order dated 03.02.2024, passed u/s 250 of the Income Tax Act, 1961 (hereafter "the Act") by the Ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC) [hereinafter "the Ld. CIT(A)].
Brief facts of the case are that in the case of the assessee for the assessment year 2018-19, the Assessing Officer noticed that the assessee was involved in certain financial transaction. However, assessee has not disclosed the same in the return of income for the relevant year. In view of the above fact after giving opportunity as per section 148A and obtaining approval from the competent authority or u/s 148A(d) of the Act was passed on 30.03.2022. Accordingly, notice u/s 148 of the Act requesting the assessee to file return of income. However, in compliance to the notice, the assessee did not respond and the AO view that unexplained loan u/s 68 of the Act of Rs. 9,00,000/- unexplained money u/s 69C of the Act, Rs. 60,44,241/- and capital gains of Rs. 30,54,000/- Vikash Kumar Tapadia was not disclosed by the assessee. Accordingly, added the above sum to the total income of the assessee by assessing the assessed income of the assessed income of the assessee at Rs. 1,15,69,051/-.
Aggrieved by the above order, the assessee preferred an appeal before the Ld. CIT(A), where the appeal of the assessee was dismissed due to non-compliance.
Dissatisfied with the above order, the assessee is in appeal before This Tribunal. At the time of hearing before this Tribunal, the assessee did not turn up nor any authorised representative appeared before the Bench in absence of the assessee or its AR, we cannot keep this appeal pending for inordinate period, therefore, we decide this appeal with the assistance of the Ld. DR. The Ld. DR stated that both the orders of the authorities below are ex parte orders. Therefore, in order to come into logical conclusion, it is necessary to remand back the issue to the file of AO so that the issue may be re-examined afresh. However, he stated that in case Tribunal remand the matter direction may be issued to the assessee to comply to the notices issued by the authority below without any fail.
We after hearing the submissions of the Ld. DR and examining the material available on record. We noticed that both the order of the AO as well as the Ld. CIT(A) were ex parte orders although sufficient opportunities were given to the assessee but no one turn up before the authority below. Therefore, considering the facts, we find that the matter may be remand back to the file of Ld. AO with a direction to re-examine the issue afresh after affording reasonable opportunity of being heard to the assessee. The assessee is also directed to comply to the notices issued by the Ld. AO as and when fixed for hearing of the case, in case the assessee did not turn up before the authorities below that even ex parte order may be passed after doing the necessary addition in the case of the assessee. 2 Sd/- Sd/- [Ratnesh Nandan Sahay] [Sonjoy Sarma] Accountant Member Judicial Member Dated: 16.09.2025. RS Copy of the order forwarded to: 1. Appellant 2. Respondent 3. CIT(A)- 4. CIT- , 5. CIT(DR),