Loading judgment…
Facts
The assessee deposited Rs. 31.86 lacs in cash, leading to a reassessment under section 147/144 of the Income Tax Act, 1961, for Rs. 33.75 lacs due to non-compliance. The first appellate authority dismissed the appeal for non-appearance or non-submissions without considering the assessee's detailed submissions.
Held
The Tribunal found that the CIT(A) erred by dismissing the appeal for technical reasons without adjudicating on merits and considering the assessee's submissions. Observing issues with notice delivery, the ITAT remanded the matter back to the CIT(A) for fresh adjudication on merits, directing the assessee to cooperate fully and submit all necessary documents.
Key Issues
Whether the first appellate authority was justified in dismissing the appeal for non-appearance/non-submissions without considering the merits and the adequacy of notice service to the assessee.
Sections Cited
Section 250, Section 147, Section 144, Section 148, Rule 34(4) of Income Tax (Appellate Tribunal) Rules, 1963
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, AMRITSAR BENCH, AMRITSAR
Before: SH. MANOJ KUMAR AGGARWAL & SH. UDAYAN DASGUPTA
This appeal is filed by the assessee against the order of ld. CIT(A) National Faceless Appeal Centre (NFAC), Delhi dated 25.01.2024 passed u/s 250 of the Income Tax Act, 1961 which has emanated from the order of the A.O., Ward 4(4), Amritsar dated 30.11.2019 passed u/s 147 r.w.s 144 of the I.T. Act, 1961.
Rs.31.86 lacs in cash in his bank account during the financial year 2011-12 on the basis of which proceedings has been initiated by issuing of notice u/s 148 on 24.03.2019 after necessary approval from higher authorities. In absence of any compliance, on the part of the assessee, to all subsequent notices issued from the department, assessment was completed u/s 144/147 of the Act on a total income of Rs.33.75 lacs.
The matter was carried in appeal before the ld. first appellate authority where the appeal has been dismissed for non appearance or non submissions.
The assessee has taken 9 (nine) grounds of appeal
in Form No. 36 but all these grounds relates mainly to the fact that the ld. first appellate authority has dismissed the appeal without considering the submissions filed by the assessee in course of appellate proceedings on 25.01.2024. It is also seen from the appellate order that notices of hearing has been issued on seven separate dates requesting the assessee for compliance but notices has been issued in ITBA Portal and there is no evidence whether notices has been issued in the e-mail id as stated in Form No.
35. It is also seen that the last hearing date was stipulated on 01.01.2024 against which the assessee has claimed to have made submission in the online portal which has never Moreover, it is also seen that the ld. first appellate authority has not adjudicated the case on merits and grounds contained in the Form 35.
5. In course of hearing, the ld. AR of the assesse prayed for an opportunity of being heard before the ld. first appellate authority and requested for remand of the case for fresh consideration of all documentary evidences in support of his contention.
We have heard the rival submissions and considered the materials on record and we find that interest of justice will be served if we remand the matter back to the file of the ld. first appellate authority for adjudication on merits of the case after considering the reply of the assessee (which is supposed to have been filed on 25.01.2024) and after considering all other materials on record. The assessee is also directed to fully cooperate in the appellate proceedings and to submit all necessary documents and explanations in support of his contention.
We have not expressed any opinion on merits of the case and all legal issues are kept open.
Order pronounced in accordance with Rule 34(4) of the Income Tax (Appellate Tribunal) Rules, 1963 as on 28.07.2025.