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Income Tax Appellate Tribunal, KOLKATA-RANCHI ‘e-COURT’, KOLKATA
Before: Shri Duvvuru RL Reddy, Vice-(KZ) & Shri Ratnesh Nandan Sahay
Per Duvvuru RL Reddy, Vice-President (KZ):- The present appeal is directed at the instance of assessee against the order of ld. Commissioner of Income Tax (Appeals),
The ld. Authorized Representative Shri Akshay Ringasia submitted a letter dated 21.07.2025 before the Bench praying for adjournment of three weeks in the matter. We have perused the record in the Open Court and found that the ld. CIT(Appeals) passed the order ex-parte without going into the merit of the case. The ld. CIT(Appeals) passed the order ex-parte mainly on the ground that the assessee was provided several opportunities of hearing and called for written submissions and documentary evidences in support of his ground of appeal raised, but the assessee did not avail any of the opportunities of being heard and not furnished any supporting evidence in support of his claim. Therefore, we do not deem it appropriate to grant any adjournment to the assesseee. Hence, the application for adjournment is rejected.
Brief facts of the case are that the appellant-assessee is an individual, who filed his return of income showing total income of Rs.36,48,610/- on 04.10.2018. A survey operation was conducted in the case of assessee under section 133A of the Income Tax Act by the ITO, Ward-3(3), Jamshedpur in the business premises on 28.02.2018. During the course of survey proceedings, documents vide Identification Marks RK-01 to RK-04 were impounded. The case was selected for compulsory scrutiny as per CBDT guidelines. Notices under section 143(2) and 142(1) were issued and served upon the assessee. As the assessee failed to reply to the notices, a (A.Y. 2018-2019) Ram Kumar letter was issued on 01.02.2021 giving final opportunity to the assessee and compliance to this was to be made on 10.02.2021. In response to the notices, the assessee submitted some documents on ITBA portal. From Form 26AS of the assessee, it was found that deducted TDS under section 194J was Rs.4,68,868/- and professional receipts were Rs.46,88,681/- for FY 2017-18. During the course of survey operation, the assessee received Rs.14,72,295/- as per receipts of his professional fees from his clinic upto 28.02.2018, which is different from the above amount on which TDS was deducted. Professional receipts were Rs.62,94,821/- for AY 2018-19 and from the ITR filed, it was shown gross receipts from profession to the tune of Rs.52,42,559/- . The assessee was requested to explain why the difference of Rs.10,52,262/- should not be treated as undisclosed income. Getting no satisfactory reply from the assessee, the ld. Assessing Officer added Rs.10,52,262/- to the total income of the assessee. On being aggrieved, the assessee preferred an appeal before the ld. CIT(Appeals).
The ld. CIT(Appeals) dismissed the appeal of the assessee ex- parte as the assessee failed to produce satisfactory documentary evidences in support of his claim inspite of sufficient opportunities given.
On being aggrieved, the assessee preferred an appeal before the ITAT.
(A.Y. 2018-2019) Ram Kumar 6. It was the submission of the ld. Counsel for the assessee that the ld. CIT(Appeals) simply upholding the order of ld. Assessing Officer and without going into the merit of the case dismissed the appeal. Ld. Counsel pleaded to set aside both the orders of revenue authorities.
It was the submission of the ld. Departmental Representative that sufficient opportunity was being provided to the assessee. Therefore, the ld. CIT(Appeals) has no other option except dismissing the appeal and he pleaded to uphold the order passed by the ld. CIT(Appeals).
We have heard both the sides and perused the material available on record. The ld. CIT(Appeals) dismissed the appeal of the assessee ex-parte without going into the merit of the case. By considering the totality of the facts and circumstances of the case, and in order to ensure the principle of natural justice, we are of the view that it is a fit case to provide one more opportunity to the assessee. Therefore, we remit the matter back to the file of ld. CIT(Appeals) with a direction to dispose of the appeal without any inference on the observations of earlier order passed by him and to decide it afresh on merit. At the same breath, we also hereby caution the assessee to promptly co-operate with the proceedings before the Ld. CIT(Appeals) failing which the Ld. CIT(Appeals) shall be at liberty to pass appropriate order in accordance with law and merits of the case, based on the materials available on the record. Thus, the grounds raised by the assessee are allowed for statistical purposes.
In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open Court on 25/08/2025.