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Facts
The assessee appealed against the ex-parte orders of the Assessing Officer (AO) and the CIT (Appeals) for the assessment year 2012-13. The lower authorities had added cash deposits to the assessee's income and made an adverse inference due to the assessee's failure to avail opportunities to present their case.
Held
The Tribunal observed that both the AO's and CIT(A)'s orders were ex-parte. To ensure justice, the matter was remanded back to the Assessing Officer, with a direction to provide one more opportunity to the assessee to argue their case before passing a fresh order according to law.
Key Issues
The key issues were the validity of ex-parte assessment and appellate orders and whether the assessee should be granted a fresh opportunity to explain the cash deposits added to their income.
Sections Cited
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Income Tax Appellate Tribunal, DELHI BENCH ‘SMC’ : NEW DELHI
This appeal by the assessee is directed against the order of the ld. CIT (Appeals)/National Faceless Appeal Centre (NFAC) dated 19.08.2023 for the assessment year 2012-13.
At the outset, I note that order of the AO as well as order of the ld. CIT (A) are ex-parte order. Although authorities below have noted that opportunities have been provided to the assessee but the assessee did not avail the same. In these circumstances, cash deposit in the bank was added to the assessee’s income. I further note that ld. CIT (A) has taken further adverse inference on account of non-prosecution of appeal by the assessee.
In my considered opinion, interest of justice would be served if the matter is remanded to the file of AO. AO shall give one more opportunity to the assessee to canvass the case and thereafter AO shall pass an order according to law. 3. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open court on this 4th day of March, 2024.