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Facts
The assessee failed to file a return of income. The Assessing Officer (AO) noted total credits of Rs. 14,46,503/- in the assessee's bank account during the demonetization period. Despite notices, the assessee did not provide details, leading to an ex-parte order under section 144, treating the sum as income under section 69A r.w.s. 115BBE. The first appellate authority also passed an ex-parte order.
Held
While deprecating the assessee's non-compliance, the Tribunal, in the interest of justice, decided to grant one more opportunity to present the case. The issues were restored to the file of the AO, who was directed to follow the necessary instructions regarding cash deposits. The assessee was directed to cooperate and avoid unnecessary adjournments.
Key Issues
Whether the ex-parte assessment order, confirmed by the first appellate authority, was justified given the assessee's failure to furnish details and the principles of natural justice.
Sections Cited
250, 139, 142(1), 144, 69A, 115BBE, 234A, 234B
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Income Tax Appellate Tribunal, “C” BENCH : BANGALORE
Before: CHANDRA POOJARI & SHRI NARENDRA KUMAR CHODHRY
This appeal at the instance of the assessee is directed against NFAC’s order dated 10.10.2023, passed under section 250 of the Income Tax Act, 1961 (hereinafter called ‘the Act’). The relevant Assessment Year is 2017-18.
Assessee has raised the following grounds:
The impugned orders of the authorities below are opposed to the law and facts of the case 2. The impugned orders are against the provisions of Law/Act and have been made in violation of the principles of natural justice and equity.
On the facts and circumstances of the case, the Learned Assessing Officer erred in charging Rs. 14.46,503/- to tax w's 69A of the Act and tax ed the same u/s 115BBE of the Act.
On the facts and circumstances of the case, the Assessing Officer erred in charging interest of Rs. 3,12,872 and Rs.3,57,568 u/s 234A and 234B respectively of the Act. 5. The appellant craves for leave to, add to, delete from or amend the grounds of appeal
3. In this case assessee has not filed return of income under section 139 of the Act. The AO found that there were total credits into assessee bank account during the demonetization period to the tune of Rs.14,46,503/-. Out of this cash of Rs.11,93,103/- was deposited during the demonetization period. Assessee did not file the return of income hence notice under section 142(1) of the Act was issued on 14.03.2018. Assessee did not reply to the above notice. One more show cause notice was issued on 24.10.2019. Assessee submitted a letter dated 05.11.2018 along with bank statement for the period from Financial Year 2013-14 to October, 2019 in respect of bank account with Syndicate Bank bearing No.2542200026875. Later, no details were filed. Hence, the AO passed ex-parte order under section 144 of the Act treating the total of Rs.14,46,503/- as income of the assessee under section 69A r.w.s. 115BBE of the Act.
4. Against this, assessee filed appeal before the NFAC. Several opportunities were provided to the assessee to file the written submissions. However, no details were filed before the NFAC and NFAC passed the ex-parte order confirming the addition made by the AO. Against this, assessee is in appeal before us.
We have heard the rival submissions and perused the material on record. The Office of the CIT(A) had issued several notices directing the assessee to file written submissions. Since there was no written submission filed on the part of the assessee, the CIT(A) passed ex-parte order. We strongly deprecate the nonchalant attitude of the assessee in not filing the written submissions on time. However, in the interest of justice and equity, we are of the view that assessee ought to be provided with one more opportunity to present his case and accordingly the issues are restored to the files of the AO. The AO shall follow the necessary instruction in case of cash deposits of specified bank notes during the demonetization period. The assessee is directed to co-operate with the Revenue and shall not seek unnecessary adjournment. It is ordered accordingly.
In the result, appeal filed by the assessee is allowed for statistical purposes.