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Facts
The Assessing Officer made additions of Rs. 60,12,000/- on account of unexplained cash credits. The Assessee appealed to the Commissioner, but failed to respond to notices. The Commissioner dismissed the appeal ex-parte. The Assessee also failed to appear before the Tribunal.
Held
The Tribunal noted that the Commissioner did not decide the appeal on merits. Considering the peculiar facts and circumstances and for the ends of justice, the Tribunal inclined to remand the case back to the Commissioner for a fresh decision.
Key Issues
Whether the Commissioner was justified in dismissing the appeal ex-parte without deciding on merits, and whether the case should be remanded for a fresh adjudication considering the Assessee's non-appearance.
Sections Cited
143(3), 68
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Income Tax Appellate Tribunal, “B” BENCH, BENGALURU BENCH
Before: SHRI N. K. CHOUDHRY, JM & SHRI LAXMI PRASAD SAHU, AM
This appeal has been preferred by the Assessee against the order dated 06.12.2023, impugned herein, passed by National Faceless Appeal Centre (NFAC), Delhi/Ld. Commissioner of Income Tax (Appeals) [in short ‘Ld. Commissioner’] under section 143(3) of the Income Tax Act 1961 (in short ‘the Act’) for the Assessment Year (in short ‘AY’) 2017-18.
In the instant case, the Assessing Officer (in short ‘AO’) vide assessment order dated 1.12.2019 u/s. 143(3) of the Act, made an addition of Rs.60,12,000/- on account of un-explained cash credits of Rs.23,50,000/- plus Rs.36,62,000/- u/s 68 of the Act, against which the Assessee preferred its first appeal before the ld. Commissioner, who though afforded various opportunities to the Assessee by sending notices, however, the notices remained un-answered. Therefore finding no response from the Assessee and in the absence of any evidence in support of Assesses’s claim which the Assessee has failed to file, ld. Commissioner dismissed the appeal of the Assessee in limine as ex-parte. The Assessee before us even after sending notice not participated today, i.e., 11.3.2024, and therefore the conduct of the Assessee does not seems to be reasonable and responsible. However, considering the peculiar facts and circumstances, as the ld. Commissioner did not decide the appeal filed by the Assessee on merits, thus for just and proper decision of the case and for the ends of justice, we are inclined to remand the instant case to the file of the ld. Commissioner for decision afresh.
2.1 We are also inclined to direct the Assessee to comply with the notices and co-operate with the appellate proceedings and file the relevant documents/submissions in support of its claim before the ld. Commissioner and in case of further default, the Assessee shall not be entitled for any leniency.
2.2 Thus the case is remanded accordingly in the aforesaid terms.
In the result appeal filed by the Assessee stands allowed for statistical purposes.