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Facts
The assessee challenged an addition of Rs. 11,81,920/- made by the Assessing Officer under section 69A for unexplained cash deposits. The appeal was filed against the order of the Commissioner (Appeals). The assessee repeatedly failed to comply with notices from the Commissioner (Appeals), requesting adjournments but not providing necessary documentation.
Held
The Tribunal noted the assessee's non-compliance but also acknowledged an acknowledgment of a request for adjournment that was not considered. Due to the absence of proper submissions, the Commissioner (Appeals) could not decide the case on merits. Therefore, the case was remanded for fresh adjudication.
Key Issues
Whether the Commissioner (Appeals) erred in passing an order without deciding the appeal on merits due to the assessee's non-compliance, and whether the case should be remanded for a fresh decision after providing the assessee with a reasonable opportunity.
Sections Cited
250, 144, 69A
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, MUMBAI BENCH “SMC”, MUMBAI
Before: SHRI NARENDER KUMAR CHOUDHRY & SHRI OMKARESHWAR CHIDARA
Per : Narender Kumar Choudhry, Judicial Member:
This appeal has been preferred by the Assessee against the order dated 18.12.2023, impugned herein, passed by the National Faceless Appeal Center (NFAC)/ Ld. Commissioner of Income Tax (Appeals) (in short Ld. Commissioner) under section 250 of the Income Tax Act, 1961 (in short ‘the Act’) for the A.Y. 2017-18.
2. In this case, the Assessing Officer (AO) vide assessment order dated 18.12.2019 u/s 144 of the Act has made the addition of Rs.11,81,920/- on account of unexplained money u/s 69A of the Act on account of unexplained cash deposit has been made. The Assessee, being aggrieved, challenged the said addition before the Ld. Commissioner, however, in spite of issuing several hearing notices the Assessee except requesting for adjournment on 31.10.2022 and 26.09.2023 made no compliance. Thereafter, a last and final opportunity notice was issued to the Assessee on 22.11.2023 which also remained uncomplied with till the passing of the order i.e. on 18.12.2023.
If we consider the conduct of the Assessee then it appears to be negligent and non-complied, however, the Assessee before us has produced one acknowledgment whereby he tried to demonstrate that in response to the last notice dated 22.11.2023 the Assessee has sought for adjournment of hearing, however, the same was not considered by the Ld. Commissioner.
Considering the peculiar facts and circumstances of the case and the fact that the Ld. Commissioner in the absence of relevant submissions and documents was unable to decide the appeal filed by the Assessee in its right perspective of the case and for the just and proper decision of the case and substantial justice, we are inclined to remand the instant case to the file of the Ld. Commissioner for decision afresh on merits, suffice to say by affording reasonable opportunity to the Assessee to substantiate her claim before the Ld. Commissioner.
We also direct the Assessee to cooperate with the appellate proceedings and to file the relevant submissions/documents which would be essential and required by the Ld. Commissioner for proper adjudication of the case. We clarify that in case of further default the Assessee shall not be entitled for any leniency. Hence, the case is remanded accordingly.
In the result, the appeal filed by the Assessee stands allowed for statistical purposes.
Order pronounced in the open court on .2024.
(OMKARESHWAR CHIDARA) (NARENDER KUMAR CHOUDHRY) ACCOUNTANT MEMBER JUDICIAL MEMBER * Kishore, Sr. P.S.
Copy to: The Appellant The Respondent The CIT, Concerned, Mumbai The DR Concerned Bench //True Copy//
By Order Dy/Asstt. Registrar, ITAT, Mumbai.
Date Initial
WHETHER DICTATION PAD ENCLOSED WITH THE FILE : Yes/No (as the order has been typed with the help of manuscript)
Draft dictated on 13.08.24 Sr.PS
Draft placed before author 16.08.24 Sr.PS
3. Draft proposed & placed JM/AM before the second member
4. Draft discussed/approved JM/AM by Second Member
5. Approved Draft comes to Sr.PS the Sr.PS/PS
6. Date of pronouncement Sr.PS
File sent to the Bench Clerk Sr.PS
Date on which file goes to the Head Clerk
Date of dispatch of Order