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Facts
The assessee, a non-filer, deposited Rs. 29,00,000 in their bank account. A notice under section 148 was issued, and the assessee filed a return declaring Rs. 1,15,220 income. Subsequently, the assessment was completed under section 144, adding the Rs. 29,00,000 deposit to the income.
Held
The Tribunal held that while the assessee was negligent in responding to notices before the CIT(Appeals), the ex-parte order lacked substantial discussion on merits. Therefore, to provide a last opportunity and in the interest of justice, the matter was remitted back to the CIT(Appeals) for adjudication on merits.
Key Issues
Whether the ex-parte order passed by the CIT(Appeals) was justified without substantial discussion on merits, and if the delay in filing the appeal should be condoned.
Sections Cited
151, 148, 144, 250
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, AGRA BENCH, AGRA
Before: SHRI SUNIL KUMAR SINGH & SHRI BRAJESH KUMAR SINGH
ORDER Per Sunil Kumar Singh, Judicial Member:
This appeal has been preferred by assessee against the impugned order dated 19.12.2023 passed in Appeal no. CIT(APPEALS)-1, AGRA/10312/2017-18 by the Ld. Commissioner of Income– tax(Appeals)/National Faceless Appeal Centre (NFAC) [hereinafter referred to as the “CIT(A)”] u/s. 250 of the Income-tax Act, 1961 [hereinafter referred to as "Act"] for the Assessment Year [A.Y.] 2010-11, wherein ld. CIT(A) has dismissed assessee’s first appeal.
Briefly stating, the assessee is a non filer. After noting that the assessee deposited Rs.29,00,000/- in his saving bank account, permission was taken u/s. 151 of the Act and notice u/s. 148 dated 31.03.2017 was issued and served upon the assessee, requiring him to furnish details in respect of the source of the aforesaid deposit. Assessee filed return of income in response thereof declaring income of Rs.1,15,220/-. Statutory notices were issued and served upon the assessee. However, no compliance was made by the assessee and the assessment was completed u/s. 144 of the Act adding aforesaid amount of Rs.29,00,000/- to the income of the assessee.
Assessee preferred an appeal before ld. CIT(Appeals) who dismissed assessee’s first appeal ex parte.
The assessee has approached this Tribunal on the ground that ld. CIT(Appeals) has erred in confirming the said addition by passing ex parte impugned order.
Assessee moved an adjournment application which was rejected.
Perused the records and heard learned Departmental Representative for Revenue.
At the very outset, it transpires from the perusal of record that there is a delay of 317-318 days in filing appeal before this Tribunal. We have gone through the delay condonation application placed on record on behalf of the assessee. Assessee has stated that the delay was due to illness of the assessee who is 70 years old senior citizen and has developed rigorous medical issues and undergoing medical treatment in M/s. R.S. Charitable Hospital, Station Road, Kuberpur Crossing, Agra. Photocopies of many medical prescriptions have also been enclosed along with the delay condonation application. In the circumstances, we deem it just and appropriate to condone the delay in filing appeal. The delay is accordingly condoned.
Ld. DR has stated that the assessee has been negligent before the first appellate authority and did not respond to various notices issued by ld. CIT(Appeals). Supported the impugned order.
We notice that notices on as much as on six occasions were issued by the first appellate authority. However, the assessee had been irresponsive to all such notices issued by first appellate authority. The first appellate authority was therefore compelled to pass ex parte order. However, we note that the ld. CIT(Appeals) has passed ex-parte impugned order without any substantial discussion on the merits of the case, whereas learned
3 | P a g e 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.
In the circumstances and in the interest of justice and fair play, we deem it just and appropriate to afford last opportunity to the assessee and remit the matter back to the file of learned CIT(Appeals) for adjudication on merits. We order accordingly. We further direct the assessee to be diligent and cooperative in attending the hearings and making submissions before the learned CIT(Appeals) for the expeditious and effective disposal. Assessee shall refrain from seeking any adjournment but for compelling and unavoidable reasons. Needless to say that learned CIT(Appeals) shall ensure the observance of the principles of natural justice. The appeal is liable to be allowed accordingly.
In the result, the appeal is allowed for statistical purposes. The impugned order dated 19.12.2023 is set aside.
Order pronounced in the open court on 22.04.2025.