RANN VIJAY SINGH,TEH. NAKODAR JALANDHAR vs. INCOME TAX OFFICER, NAKODAR

The matter was carried in appeal before the ld. CIT(A) and it is seen from the appellate order that the notices has been issued from the office of the ld. first appellate authority on four different dates of hearing against which the assessee has sought adjournment on two occasions but no submissions or written explanations has been filed before the ld. CIT(A) on merits of the case. As such, in absence of any adjudication on merits of the case.

Now, the assessee is in appeal before the Tribunal on the grounds contained in the Memorandum of Appeal. The ld. AR submits that the assessee is suffering from Obsessive Compulsive disorder and other non-organic psychotic disorder which is evidenced by the doctor’s certificate. The ld. AR of the assessee has also furnished medical certificates and documents from Sareen Health Care Centre, Jalandhar, and an affidavit was also filed by the assessee himself stating the fact that he is suffering from a chronic psychotic disorder. Even though he has applied and prayed for adjournment from the appellate authority he could not subsequently represent his case along with all papers and documents before the ld. CIT(A), because of his medical issue resulting in the appeal being dismissed.

The ld. AR further submitted that the ld. CIT(A) has disposed of the appeal without considering the application for adjournment and considering the fact that the assessment has also been passed ex-parte because at that particular period of time, the assessee was medically unwell, he prays that an opportunity may please be allowed to the assessee for explaining the credits in the bank account with supporting documents.

The ld. DR relied on the order of the ld. CIT(A) and stated that in spite of repeated opportunities, the assessee has not been able to explain the source of cash evidences neither before the Assessing Officer, nor before this first appellate authority and has not even stated as to the nature of source thereof. He further stated that the assessee has been intentionally avoiding to appear and explain his case before the department, and prays that the order of the ld. CIT(A) may please be sustained.

We have considered the rival submissions and considered the materials on record and the medical prescriptions and the doctors certificate filed before us where the assessee is suffering from “non-organic phychotic disorder” since May, 2023 as evident from the prescriptions and we also find that the cash of Rs.31,63,000/- which has been deposited in the State Bank of India, Patiala in account number xxxxxx19826 by the assessee during the financial year 2011-12 needs to be explained and the source of such deposits is required to be proved to the satisfaction of the AO by production of necessary papers, documents and supporting books of account if any. We also note that the ex-parte order has been passed at the assessment stage and also before the first appellate authority and as such in the fitness of things and in the interest of justice, we remand the matter back to the files of the Assessing Officer for fresh assessment on merits of the case after examining all papers and documents to be produced by the assessee in support of his explanations of the cash deposits in the bank account to the full satisfaction of the Assessing Officer and we direct the necessary documentary evidences and explain the source and the nature of the said cash deposits in bank account.

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