MOHD RAFI,DODA, JAMMU AND KASHMIR vs. INCOME TAX OFFICER WARD, UDHAMPUR

Brief facts emerging from record are that the assessee has deposited cash in various bank accounts during the demonetization period amounting to Rs.18.27 lacs maintained with J & K Bank and no return has been filed. In absence of any return on record and in absence of any compliance to notice issued u/s 142(1) of the Act the assessment was completed ex-parte on a total income of Rs.24.82 lacs (which includes an amount of Rs.18.27 lacs as SBN deposits and amount of Rs.6.48 lacs as profits from business at percentage of the balance deposits).

In course of appellate proceedings, the appeal has been dismissed by the ld. first appellate authority without any adjudication on the grounds contained in the memorandum of appeal on merits. It is seen from the appellate order that the notices of hearing issued to the appellant on four separate dates and it is also seen that the appellant has furnished documents along with the written submissions on 09.06.2024 and 14.07.2024 (para 1.3 of the appellate order). Subsequently, it is also noted by us submissions made by the assessee by observing that the appellant did not respond both observations being contradictory.

As such, we remand the matter back to the files of the ld. CIT(A) for adjudicating on the grounds of appeal contained in Form No. 35 on merits after allowing a proper and reasonable opportunity of being heard to the assessee. The assessee is also directed to file all documentary evidences and submissions to satisfactorily explain the source of cash deposits in bank including the deposits during demonetization period and to fully cooperate in appellate proceedings.

In the result, the appeal filed by the assessee is allowed for statistical purpose.