INDER MALHOTRA,AGRA vs. INCOME TAX OFFICER 1(1)(1), AGRA, AGRA
Facts
The assessee filed returns for assessment years 2014-15, 2015-16, and 2016-17. The Assessing Officer reopened the case based on information about significant cash deposits in the assessee's bank account and added a large sum as unexplained credits. The assessee's first appeals before the CIT(Appeals) were dismissed ex parte.
Held
The Tribunal noted that while the assessee was absent in the first appellate proceedings, the CIT(Appeals) passed an ex-parte order without substantial discussion on merits. The Tribunal emphasized the principle of natural justice and the need for reasoned orders.
Key Issues
Whether the ex-parte order passed by the CIT(Appeals) was justified without a proper discussion on merits, and whether the assessee should be granted another opportunity to present their case.
Sections Cited
147, 148, 142(1), 69A, 250(6)
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. 243, 244 & 245/Agr/2025 Assessment Years: 2014-15, 2015-16 & 2016-17
Inder Malhotra, 10/163A, I-3, Vs. Income-tax Officer, Rajshree Cinema, Bagh Ward 1(1)(1), Agra. Muzaffar Khan, Agra. PAN : ABIPM2686H (Appellant) (Respondent)
Assessee by S/Sh. Nitin Goyal & Amit Goyal, Advocates Department by Sh. Sukesh Kumar Jain, CIT(DR)
Date of hearing 20.08.2025 Date of pronouncement 29.08.2025
ORDER PER : SUNIL KUMAR SINGH, JUDICIAL MEMBER:
All these three appeals have been preferred by assessee against separate impugned orders all dated 28.02.2025 passed in first appeal No. NFAC/2013-14/10274599, NFAC/2014-15/10274612 and NFAC/2015-16/10274638 for the assessment years 2014-15, 2015-16 and 2016-17 respectively, by Ld. CIT(Appeals)/NFAC, Delhi u/s. 250 of the Income-tax Act, 1961 (hereinafter referred to as the “Act”) wherein Ld. CIT(Appeals) has dismissed assessee’s first appeals ex parte.
ITA Nos.243, 244 & 245/Agr/2025
The facts in all the three appeals are almost similar. Hence, for the
sake of brevity and convenience, these appeals are being decided by
the common order. The facts of ITA No. 243/Agr/2025 for the
assessment year 2014-15 are only being narrated as under :
The appellant assessee filed return of income for A.Y. 2014-15 on
31.03.2015, declaring total income of Rs.15,69,350/-. On the basis of
information available with the department, it was noticed that the
appellant assessee deposited cash to the tune of Rs.5,91,19,575/- in his
bank account No. 0273010100002760 in J & K Bank. The case was
reopened u/s. 147 and notice u/s. 148 of the Act was issued. Assessee
did not file the return of income in response thereof. Assessee did not
respond to the notice issued u/s. 142(1) of the Act. However, assessee
submitted reply dated 08.05.2023 in response to the show cause notice
dated 20.04.2023. Assessing Officer, not being satisfied with assessee’s
response, added Rs.8,58,87,265/- as unexplained deposits/credits u/s.
69A of the Act.
Aggrieved assessee filed an appeal before ld. CIT(Appeals), who
dismissed assessee’s first appeal ex parte.
Assessee has filed the second appeal on the various grounds, one
of which is that he could not participate and defend his case in the
appellate proceedings on account of unavoidable reasons, praying to 2 | P a g e
ITA Nos.243, 244 & 245/Agr/2025
afford one more opportunity to present his case before the revenue
authorities on merit.
Perused the records. Heard Ld. representative for assessee and
Ld. DR for revenue.
Learned representative for assessee has submitted that the
impugned order has been passed ex parte, as the assessee could not
participate in the first appellate proceedings due to unavoidable reasons,
hence, be afforded an opportunity of hearing before the first appellate
authority.
Learned DR has pointed out that as many as on seven occasions,
assessee was afforded opportunities to defend his case during the first
appellate proceedings, yet he chose to remain away from participating in
the proceedings. Ld. DR has supported the impugned order.
It transpires from the perusal of the impugned order that the
assessee did not file any submission in response to various notices
issued by the first appellate authority on 19.06.2024, 28.06.2024,
22.07.2024, 06.08.2024, 19.09.2024 and 13.02.2025. Such an
irresponsive and reluctant attitude of the assessee has compelled the
first appellate authority to pass impugned order ex parte. It is, however,
noticed that learned CIT(Appeals) passed ex-parte impugned order
without any substantial discussion on the merits of the case, whereas 3 | P a g e
ITA Nos.243, 244 & 245/Agr/2025
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, more particularly when the appellant assessee had
raised 11 grounds in Form-35 before ld. CIT(Appeals).
It is well settled principle that the ‘reason’ is the life of law. It is that
filament that injects soul to the order. Absence of analysis, not only
evinces non-application of mind but also mummifies the core spirit of the
order. Keeping the well settled principle that no litigant should be
condemned unheard in view, we deem it just and appropriate to remit
the matter back to the file of learned CIT(A) for adjudication afresh on
merits after affording opportunity of hearing to the assessee. The ld.
CIT(Appeals) is directed to pass speaking and reasoned order. We
direct the assessee to be cooperative in attending the hearings and
making submissions before the learned CIT(A) for the expeditious and
effective disposal. Needless to say, that learned CIT(A) shall ensure the
observance of the principles of natural justice. It is made clear that we
have not made any observation in respect of the merits of the case. The
appeal is, thus, liable to be allowed for statistical purposes.
Since, the issues involved in ITA Nos. 244 & 245/Agr/2025 for A.Y.
2015-16 and 2016-17 are identical to one involved in ITA No.
243/Agr/2025(A.Y. 2014-15, our finding in ITA No. 243/Agr/2025 (A.Y. 4 | P a g e
ITA Nos.243, 244 & 245/Agr/2025
2014-15) 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. 243, 244 & 245/Agr/2025 are allowed for
statistical purposes. The impugned orders all dated 28.02.2025 are set
aside.
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
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