HARSHADA RAJENDRA SHAH,UNITED STATES OF AMERICA vs. ITO WARD 20(1)(5) MUMBAI, MUMBAI

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ITA 4300/MUM/2023Status: DisposedITAT Mumbai30 April 2024AY 2017-2018Bench: the AO in view of his health issues and hence the AO has passed the assessment to the best of his judgment u/s 144 of the Act. For the very same reasons, the assessee did not appear before Ld CIT(A) also. Accordingly, the ld.A.R submitted that the assessee could not appear before ld.CIT(A)/AO for the reasons beyond his control and accordingly prayed that the matter may be restored to the file of AO for examination of all the issues afresh. 4. I have heard ld. Departmental Representative and1 pages

AI SummaryAllowed

Facts

The assessee, a non-resident aged 70 and suffering from cancer, failed to appear before the Assessing Officer (AO) and the CIT(A) due to health reasons. The AO made additions to the income, and the CIT(A) passed an ex-parte order dismissing the appeal. The assessee challenges this ex-parte order.

Held

The Tribunal noted that the assessee could not appear before the lower authorities due to reasons beyond their control. In the interest of natural justice, the assessee should be given another opportunity to present their case.

Key Issues

Whether the ex-parte order passed by the CIT(A) was justified and whether the assessee should be granted another opportunity to present their case before the AO.

Sections Cited

144

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, MUMBAI BENCH “SMC”, MUMBAI

For Appellant: Shri Subhash S. Shetty

For Respondent: Shri Suni Mathews, Sr. DR

Hearing: 29/04/2024Pronounced: 30/04/2024

Vs. ITO -Ward 20(1)(5), Mumbai 121, 1st Floor, Piramal Chambers, Lal Baug, Parel, Mumbai 400 012. - Respondent Appellant by : Shri Subhash S. Shetty Respondent by : Shri Suni Mathews, Sr. DR Date of Hearing : 29/04/2024 Date of Pronouncement : 30/04/2024 O R D E R The assessee has filed this appeal challenging the order dated 29/9/2023 passed by ld. CIT(A), NFAC, Delhi and it relates to the assessment year 2017-18.

I notice that the Ld.CIT(A) has passed ex-parte order dismissing the appeal of the assessee for the reason that the assessee did not respond to various notices issued by him and further confirming the additions made by the AO. Aggrieved, the assessee has filed this appeal the Tribunal.

The ld.A.R submitted that the assessee is a Non-resident settled in USA and aged around 70 years old. Further, he is suffering from Cancer and is being treated in USA. The addition made by the Assessing Officer consisted of cash deposits made during demonitisation period (Rs.22,31,500/-) and other credit entries (Rs.3,75,632/-) found in the bank accounts. The assessee could not appear before the AO in view of his health issues and hence the AO has passed the assessment to the best of his judgment u/s 144 of the Act. For the very same reasons, the assessee did not appear before Ld CIT(A) also. Accordingly, the ld.A.R submitted that the assessee could not appear before ld.CIT(A)/AO for the reasons beyond his control and accordingly prayed that the matter may be restored to the file of AO for examination of all the issues afresh.

I have heard ld. Departmental Representative and perused the record. Having regard to the submissions made by the assessee and in the interests of natural justice, I am of the view that the assessee may be provided with one more opportunity to present his case properly before the AO. Accordingly, I set aside the order passed by Ld CIT(A) and restore all the issues to the file for the assessing officer for adjudicating them on merits by duly consideration information and explanations that may be furnished by the assessee before him. I also direct the assessee to fully co-operate with ld.CIT(A) for expeditious completion of assessment proceedings.