JAY SINGH,AGRA vs. INCOME TAX OFFICER, 2(1)(1), AGRA, AGRA
Facts
The assessee failed to file income tax returns for AY 2013-14 and subsequent years, and did not respond to statutory notices. The Assessing Officer reopened the case under section 147, added unexplained cash deposits and credit entries in the bank account, and passed best judgment assessments. The CIT(Appeals) dismissed the assessee's appeals ex parte.
Held
The Tribunal noted the assessee's negligent conduct but, in the interest of justice and fair play, decided to afford an opportunity for the assessee to make submissions. The impugned orders were set aside, and the matters were remitted back to the Assessing Officer for fresh adjudication.
Key Issues
Whether the assessee was afforded proper opportunity of hearing by the revenue authorities, and whether the ex parte orders passed violated principles of natural justice.
Sections Cited
147, 144, 144B, 69A, 271(1)(c)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, AGRA BENCH, AGRA
Before: SHRI M. BALAGANESH & SHRI SUNIL KUMAR SINGH
IN THE INCOME TAX APPELLATE TRIBUNAL, AGRA BENCH, AGRA BEFORE : SHRI M. BALAGANESH, ACCOUNTANT MEMBER AND SHRI SUNIL KUMAR SINGH, JUDICIAL MEMBER ITA Nos. 200, 201 & 198/Agr/2025 Assessment Years: 2013-14, 2014-15 & 2014-15
Jai Singh, Village- Nayabans, Vs. Income-tax Officer, Post- Doltabad, Achnera, Agra. Ward 2(1)(1), Agra. PAN : DCZPS6868A (Appellant) (Respondent)
Assessee by S/Sh. Nitin Goyal & Amit Goyal, Advocates Department by Sh. Anil Kumar, Sr. DR
Date of hearing 19.08.2025 Date of pronouncement 29.08.2025
ORDER PER : SUNIL KUMAR SINGH, JUDICIAL MEMBER:
ITA No. 200/Agr/2025 for A.Y. 2013-14 has been preferred against the impugned order dated 24.02.2025 passed by Ld. CIT(Appeals)/NFAC, Delhi in first appeal No. NFAC/2012-13/10299278,
wherein Ld. CIT(Appeals) has dismissed assessee’s appeal ex parte and confirmed assessment order dated 21.04.2023 passed u/s. 147 r/w sec. 144/144B of the Act. ITA No. 201/Agr/2025 for A.Y. 2014-15 has
been filed against the order dated 24.02.2025 passed by CIT(Appeals)/NFAC, Delhi in first appeal No. NFAC/2013-14/10302964, wherein Ld. CIT(Appeals) has dismissed assessee’s first appeal ex
ITA Nos.200, 201 & 198/Agr/2025
parte and confirmed assessment order dated 25.03.2022 passed u/s.
147 r.w.s. 144/144B of the Act and ITA No. 198/Agr/2025 for A.Y. 2014-
15 has been filed against the order dated 28.03.2025 passed by Ld.
CIT(Appeals)/NFAC, Delhi in first appeal No. NFAC/2013-14/10302965,
wherein Ld. CIT(Appeals) has dismissed assessee’s first appeal ex
parte and confirmed the penalty order dated 22.09.2022 passed u/s.
271(1)(c) of the Act.
The facts in all the three appeals are almost either similar or
consequential. Hence, for the sake of brevity and convenience, these
appeals are being decided by the common order. The facts of ITA No.
200/Agr/2025 for the assessment year 2013-14 are only being narrated
as under :
The assessee did not file any return of income for the assessment
year 2013-14 and the case was reopened u/s. 147 of the Income-tax
Act, 1961 (hereinafter referred to as the “Act”) for the reason that
assessee deposited cash of Rs.29,78,300/- and credit entries of
Rs.33,63,854/- in his bank account No. 21651930000187, HDFC Bank
Ltd. Kirawali, Agra. The assessee did not respond and comply with
various statutory notices. Hence, the ld. Assessing Officer completed the
assessment u/s. 147 read with section 144 r/w 144B of the Act and
2 | P a g e
ITA Nos.200, 201 & 198/Agr/2025
added Rs.63,42,154/- as unexplained cash deposits and credit entries in
assessee’s bank account u/s. 69A of the Act.
Aggrieved assessee filed an appeal before the ld. CIT(Appeals),
who, vide, ex parte order dated 24.02.2025, dismissed assessee’s first
appeal.
Aggrieved, the assessee filed this second appeal on the ground, in
addition to many others, that learned CIT(Appeals) has not afforded
proper and adequate opportunity of hearing to the assessee.
Perused the records and heard learned representative for the
assessee and learned DR for the revenue.
Learned representative for assessee has submitted that both the
revenue authorities have passed ex parte orders against the assessee in
violation of the principles of natural justice, praying to afford an
opportunity to the assessee to make his submissions before the
Assessing Officer so as to explain the cash deposits and cash credits in
the bank account.
Learned DR has submitted that the assessee was afforded many
opportunities by the first appellate authority, but he did neither respond
nor make any submission. Supported the impugned ex parte order
passed on merits.
3 | P a g e
ITA Nos.200, 201 & 198/Agr/2025
We notice that the learned Assessing Officer made the best
judgment assessment u/s. 144B of the Act for want of any submissions
by the assessee. We further notice that the first appellate authority
issued various notices on 06.06.2024, 14.06.2024, 02.07.2024,
18.07.2024, 05.08.2024, 16.08.2024 and 06.02.2025, but for no avail.
The negligent conduct of the reluctant assessee cannot be appreciated.
However, we deem it just and appropriate in the interest of justice and
fair play to afford an opportunity to the assessee to make requisite
submissions/explanations before the learned Assessing Officer.
Accordingly, the impugned order is set aside and the matter is remitted
back to the file of the Assessing Officer. The assessee is directed to
submit explanations/submissions before the Assessing Officer in respect
of cash deposits of Rs.29,78,300/- and credit entries of Rs.33,63,854/- in
his bank account, as required by the revenue. The Assessing Officer is
directed to adjudicate the matter afresh in accordance with law after due
consideration of assessee’s submission/explanation. Needless to say
that the ld. Assessing Officer shall ensure the observance of the
principles of natural justice during the course of proceedings.
Accordingly, the appeal is liable to be allowed for statistical purposes.
Since, the issue involved in ITA No. 201/Agr/2025 for A.Y. 2014-15
is identical to one involved in ITA No. 200/Agr/2025(A.Y. 2013-14) and 4 | P a g e
ITA Nos.200, 201 & 198/Agr/2025
the issue involved in ITA No. 198/Agr/2025 (A.Y. 2014-15) pertains to
the penalty levied u/s. 271(1)(c) of the Act in consequence of
assessment order passed in ITA No. 201/Agr/2025, our finding in ITA No. 200/Agr/2025 (A.Y. 2013-14) shall mutatis mutandis apply in these
two appeals too. Accordingly, both these appeals are also liable to be
allowed for statistical purposes.
In the result, ITA No. 200, 201 & 198/Agr/2025 are allowed for
statistical purposes.
Order pronounced in the open court on 29.08.2025.
Sd/- Sd/- (M. BALAGANESH) (SUNIL KUMAR SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 29.08.2025 *aks/- Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(A) 5. DR Asst. Registrar, ITAT, Agra
5 | P a g e
