NARESH CHANDRA JAIN,JHANSI vs. INCOME TAX OFFICER, JHANSI
Facts
The assessee failed to file a return of income for assessment year 2018-19. The Assessing Officer initiated proceedings under section 147 and completed the assessment ex parte after the assessee did not respond to notices. The CIT(Appeals) also dismissed the assessee's appeal ex parte.
Held
The Tribunal noted that the CIT(Appeals) passed an ex parte order without substantial discussion on merits, which did not comply with section 250(6) of the Act. The Tribunal also observed the assessee's lack of response and cooperation throughout the proceedings.
Key Issues
Whether the CIT(Appeals) erred in confirming the addition without giving a proper opportunity to the assessee and whether the orders passed were against the principles of natural justice.
Sections Cited
147, 148, 142(1), 133(6), 144, 144B, 250(6)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, AGRA BENCH, AGRA
Before: SHRI S. RIFAUR RAHMAN & SHRI SUNIL KUMAR SINGH
IN THE INCOME TAX APPELLATE TRIBUNAL, AGRA BENCH, AGRA BEFORE : SHRI S. RIFAUR RAHMAN, ACCOUNTANT MEMBER AND SHRI SUNIL KUMAR SINGH, JUDICIAL MEMBER ITA No. 402/Agr/2025 Assessment Year: 2018-19
Naresh Chandra Jain, Vs. Income-tax Officer, 13, Payga Mohalla Gursaria, Ward 2(3)(5), Jhansi. Jhansi. PAN :AFQPJ2761L (Appellant) (Respondent)
Assessee by Sh. Sanjeev Agarwal, CA Department by Sh. Shailendra Srivastava, Sr. DR
Date of hearing 15.10.2025 Date of pronouncement 30.10.2025
ORDER PER : SUNIL KUMAR SINGH, JUDICIAL MEMBER:
This appeal has been preferred by assessee against the impugned order dated 30.07.2024 passed in Appeal No. NFAC/2017-18/10258203 by
the Ld. Commissioner of Income-tax (Appeals), NFAC, Delhi u/s. 250 of the Income-tax Act, 1961 (hereinafter referred to as “the Act”) for the assessment year 2018-19, wherein the ld. CIT(Appeals) has dismissed
assessee’s appeal ex parte.
ITA No. 402/Agr/2025
Brief facts state that the appellant assessee did not file any return of
income for the assessment year 2018-19. It was noticed by the Assessing
Officer that the assessee had deposited a sum of Rs.1,25,45,000/- with
Central Bank of India as well as received Rs.48,930/- as winning from
lottery or crossword puzzle during the F.Y. 2017-18. The Assessing Officer,
therefore, initiated proceedings u/s. 147 and issued notice dated
26.03.2022 u/s. 148 of the Act. Assessee neither complied with this notice
nor filed any return of income in response thereof. Several statutory notices
issued to the assessee u/s. 142(1) as well as notice u/s. 133(6) to the bank
but remained un-responded. Therefore, the Assessing Officer completed
the assessment u/s. 147 r.w.s. 144 r/w section 144B of the Act and
assessed the assessee at total income at Rs.1,25,93,930/-, vide order
dated 14.03.2023.
Aggrieved, assessee preferred first appeal before ld. CIT(Appeals),
who dismissed assessee’s appeal ex parte.
Appellant assessee has filed this appeal on the ground that ld.
CIT(Appeals) has erred in confirming the addition without giving proper
opportunity to present his case and the order passed by the Assessing
Officer was also against the principles of natural justice.
2 | P a g e
ITA No. 402/Agr/2025
Perused the records and heard learned representative for assessee
and learned Sr. DR for revenue.
Learned representative for assessee initially moved an application,
seeking adjournment, but subsequently submitted that since no sufficient
opportunity of hearing was provided before both the authorities below, the
matter may be restored back to the file of Assessing Officer for passing a
fresh order in accordance with law.
Learned Sr. DR has supported the impugned order.
We note that during the first appellate proceedings, notices were
issued on 28.03.2024, 05.07.2024, 12.07.2024 and 22.07.2024 to the
appellant assessee. However, the assessee filed no response. We further
note that the ld. CIT(Appeals) has passed ex parte order merely supporting
the assessment order etc. without any substantial discussion on merits,
which is not in consonance with section 250(6) of the Act, whereas learned
CIT(Appeals) was expected to state the points for determination, decision
thereon and the reasons for the decision as provided u/s. 250(6) of the Act.
Perusal of assessment order also shows that due to irresponsive conduct of
the assessee, learned Assessing Officer was compelled to pass best
judgment assessment u/s. 147 r.w.s. 144 and sec. 144B of the Act. Such
an irresponsive and reluctant conduct of the assessee cannot be 3 | P a g e
ITA No. 402/Agr/2025
appreciated. In the totality of facts and circumstances and in the interest of
justice, we deem it just and proper to afford an opportunity of hearing to the
appellant assessee to make his submissions before the Assessing Officer.
The matter is thus remitted back to the file of Assessing Officer for passing
order afresh in accordance with law after taking assessee’s submissions
into consideration. We further direct the assessee to be diligent and
cooperative in attending the proceedings and making submissions before
the learned Assessing Officer for the expeditious and effective disposal.
Needless to say that learned Assessing Officer shall ensure the
observance of the principles of natural justice. The appeal is thus liable to
be allowed for statistical proposes.
In the result, assessee’s appeal is allowed for statistical purposes.
The impugned order dated 30.07.2024 is set aside.
Order pronounced in the open court on 30.10.2025. Sd/- Sd/- (S. RIFAUR RAHMAN) (SUNIL KUMAR SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 30.10.2025 *aks/- Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(A) 5. DR Asst. Registrar, ITAT, Agra
4 | P a g e
