Loading judgment…
Facts
The assessee's appeal was against an order of the CIT(A) for AY 2016-17, arising from proceedings under sections 147, 144, and 144B of the Income Tax Act. The Assessing Officer had information about a cash deposit and interest income, and noted no return was filed. Despite opportunities, the assessee did not fully comply or provide sufficient proof of agricultural income.
Held
The Tribunal noted the assessee's delay in filing the appeal and condoned it. It was observed that the assessee had not been effectively represented before the lower authorities, and the CIT(A) had dismissed the appeal ex-parte. To ensure natural justice, the order of the CIT(A) was set aside.
Key Issues
Whether to condone the delay in filing the appeal and whether to provide an opportunity for fresh hearing to the assessee due to lack of proper representation before lower authorities.
Sections Cited
147, 144, 144B
AI-generated summary — verify with the full judgment below
Date of Hearing 15.07.2025 Date of Pronouncement 29.07.2025 ORDER, PER BRAJESH KUMAR SINGH, AM,
This appeal filed by the assessee is directed against an order dated 28.02.2025 of the National Faceless Appeal Centre, Delhi/Ld. CIT(A), relating to Assessment Year 2016-17 arising out of order u/s 147 r.w.s. 144 r.w.s. 144B of the Income Tax Act, 1961 (hereinafter referred to ‘the Act’) dated 25.02.2024.
None appeared on behalf of the assessee. However, the appeal is being decided after hearing the ld. Sr. DR and on the basis of material available on record.
There is a delay of 11 days in filing of the appeal, the same has been explained by the assessee in the submission, which is reproduced as under:-
3.1. Considering the submission of the assessee for the delay in filing the appeal, we condone the delay and admit this appeal for adjudication.
Brief facts of the case:-The Assessing Officer had information that the assessee had deposited cash of Rs.52,71,542/- with Account No.xxxxxx3304 maintained with Central Bank of India and also earned interest income of Rs.19,187/- in the said bank account and also earned insurance commission of Rs.3400/- from Exide Life Insurance Company Limited. The Assessing Officer also took noted of the fact that no return of income was filed by the assessee for this year. As per the details noted by the Assessing Officer, the assessee was given hearing opportunity on four occasions, when there was no compliance by the assessee. The assessee in response to show-cause notice dated 10.01.2024 submitted his reply on 02.02.2024 and submitted that he was a farmer holding the land and was doing agricultural activities and submitted a copy of Khasra in support of his claim in holding land.
The assessee further submitted that the cash deposits in the bank account was out of his earnings from agricultural activity but the Assessing Officer noticed that no proof of such details as details of the crops cultivated and sold out were furnished. . The Assessing Officer also noted that the assessee did not appear on the scheduled Video Conferencing on 07.02.2024 at 2 PM as requested by him. The Assessing Officer further noted that the assessee failed to submit any supporting documents regarding agricultural activities being carried out, he therefore added a sum of Rs.52,94,129/-.
Aggrieved with the said order, the assessee filed an appeal before the ld. CIT(A). The Ld. CIT(A) dismissed the appeal of the assessee ex-parte as according to him, the assessee did not appear in response to two notices issued on 04.02.2025 and 12.02.2025. Further, the Ld. CIT(A) issued a notice dated 19.02.2025 to the assessee, wherein, it was also informed that in case of none compliance, it may result in the case being decided on merits or dismissed accordingly. However, as noted by the ld. CIT(A) again there was again no compliance. In view of these facts, the ld. CIT(A) dismissed the appeal of the assessee.
Against the order of the Ld. CIT(A), the assessee is in appeal before us.
The Ld. DR relied upon the orders of the authorities below.
8. We have heard the ld. DR and perused the material available on record. Considering the fact that there was no effective representation on behalf of the assessee before the authorities below and the learned CIT(A) dismissed the assessee's appeal in limine without giving any finding on merit, in order to subserve the interest of natural justice and to provide an opportunity to the assessee to effectively represent his case, the order of learned CIT(A) is set aside and the matter is restored to the file of learned CIT(A) for decision afresh on merit, after providing reasonable opportunity of being heard to the assessee. Further, the assessee is also directed to appear before the Ld. CIT(A) during the course of appellate proceedings. Grounds of appeal are allowed for statistical purposes.
In the result, the appeal of the assessee is allowed for statistical purposes.
Order pronounced in the open court on 29th July, 2025.