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Facts
The assessee, Angha Anand Warang, failed to respond to notices issued under Section 148 and 142(1) of the Income-tax Act for AY 2012-13. The Assessing Officer (AO) passed an ex-parte assessment order under Section 144, adding ₹26,33,800 to the total income. The assessee's appeal before the CIT(A) was dismissed due to lack of prosecution.
Held
The Tribunal noted that the CIT(A) dismissed the appeal due to lack of prosecution, without deciding on merits. The Tribunal directed the assessee to approach the AO with relevant information to substantiate the cash deposits, restoring the appeal to the AO for fresh consideration.
Key Issues
Whether the ex-parte assessment order passed without considering the assessee's submissions, especially in light of her health issues, is valid? Whether the CIT(A) was justified in dismissing the appeal due to lack of prosecution without deciding on merits?
Sections Cited
Section 144, Section 148, Section 142(1), Section 133(6)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “SMC” BENCH, MUMBAI
Before: SHRI PRASHANT MAHARISHI, AM
is filed by Angha Anand Warang for A.Y. 2012-13 against the order of National Faceless Appeal Centre, Delhi [the learned CIT (A)] dated 20th December, 2023, wherein the appeal filed by the assessee against the assessment order dated 11th November, 2019, passed by the ITO Ward 2(1) Kalyan, under Section 144 of the Income-tax Act, 1961 (the Act) was dismissed.
2. The assessee has raised following grounds of appeal:-
“1. The learned Assessing officer case close on 31 .10.2019 as passed ex-party order on or before 60 days of the limitation date i.e. 31.12.2019 1 approach
The ex-party assessment order passed after that the appeal dispose off as i am not aware of the facts that the details sought by the CIT appeal and within 3 months dispose the same as my physically and mentally health not stable the medical papers as and when require i can show to the ITAT tribunal.”
The brief facts of the case shows that assessee is a non- filer of return wherein information is received from ITS that assessee has deposited cash amounting to ₹12,42,400/- and ₹13,91,400/- in her savings bank account with Shamrao Vithal co-operative bank and Urban Co-operative Bank. Thus, notice under Section 148 of the Act was issued on 29th March, 2019. No response was received from assessee. Notice under Section 142(1)
Based on this, the learned Assessing Officer passed an assessment order under Section 144 of the Act making an addition of ₹26,33,800/- to the total income of the assessee by order dated 11th November, 2019.
The assessee preferred an appeal before ld CIT (A) wherein the assessee submitted that before the learned Assessing Officer assessee asked for the adjournment but same was not granted. Therefore, before the learned CIT (A) it was submitted that the remand report of the learned Assessing Officer may be obtained so that correct income of the assessee can be assessed. In The statement of fact filed before him, it was stated that assessee was only legal heir of the family. She does not have any brother or sisters and her father prepared a Will in 2003. Her father passed away in August, 2010 and the amount of deposit in the bank account is out of that. The learned CIT (A) on the basis of the statement of facts issued notices to the assessee wherein the assessee sought adjournment but ultimately did not comply and hence, the learned CIT (A) held that due to the lack of prosecution by the assessee the appeal is dismissed.
The learned Departmental Representative vehemently submitted enough opportunity has been given to the assessee to represent her case and therefore, the orders of the lower authorities may be upheld.
We have carefully considered the rival contentions and find that the learned CIT (A) has not decided the appeal on the merits of the case but due to lack of prosecution. May be assessee did not remain present before him but even then the appeal should have been decided on the merits of the case. In the statement of facts, assessee has stated that on the death of her father she was the beneficiary of Will and the money has come from that source. This aspect was though before the learned Assessing Officer as well as before the learned CIT (A) but as no documentary evidence were submitted and therefore, looking to the facts and circumstances of the case and the health of the assessee, we direct the assessee to approach the learned Assessing Officer with
In the result, the appeal of the assessee is allowed for statistical purposes.
Order pronounced in the open court on 27.06.2024.