ABHISHEK AGRAWAL,GWALIOR vs. INCOME TAX OFFICER, WARD 2(3), GWALIOR, GWALIOR

Brief facts of the case:- This case was selected for complete scrutiny for the reasons “cash deposits during the year”. The Assessing Officer noted that the assessee had deposited a sum of Rs.1,25,50,000/- during the demonetization period. The assessee explained that the source of the cash deposits made by the assessee during the demonetization period was regular funds from trading in jewellery and accumulated funds. The Assessing Officer did not accept the entire explanation of the assessee and accepted a sum of Rs.37,07,920/- as cash from sales and treated the balance amount of Rs.73,52,180/- as unexplained and added it u/s 69A r.w.s. 115BBE of the Act.

Aggrieved with the said order, the assessee preferred an appeal before the ld. CIT(A). The ld. CIT(A) dismissed the appeal of the assessee ex-parte as according to him the notices u/s 250 of the Act issued for hearing of the appeal was served upon the assessee on 17.02.2021, 05.02.2024 and 04.02.2025 but no details were submitted by the assessee. Thereafter, the ld. CIT(A) discussed the matter on merits and dismissed the appeal of the assessee.

Aggrieved with the order of the Ld. CIT(A), the assessee is in appeal before us.

During the hearing before us, it was submitted by the Ld. AR as stated in grounds of appeal no.1 of the appeal that the Ld. CITA) erred in deciding the appeal ex-parte for which no message of notice was received. Thus, it is seen that the assessee could not appear before the Ld. CIT(A) and the ld.AR requested that one more opportunity may be given to the assessee to explain the facts before the ld. CIT(A).

The ld. DR supported the orders of the authorities below.

We have heard both the parties and perused the material available on record. On perusal of the reasons given by the assessee for non-appearance sufficient cause for non-appearance before the Ld. CIT(A). We, therefore, in the interest of justice, set-aside the order of the Ld. CIT(A) and restore the matter to his file for deciding this issue afresh after giving a reasonable opportunity of being heard. Further, the assessee is also directed to appear before the Ld. CIT(A) during the course of hearing.

In the result, the appeal of the assessee is allowed for statistical purposes.