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Facts
The appeals concern ex-parte assessment orders for Assessment Years 2016-17 and 2017-18. The Assessing Officer made additions for undisclosed income based on bank deposits. The assessee did not appear before the Assessing Officer or the First Appellate Authority, despite notices. The appeals were decided based on the material on record and arguments from the Department's Representative.
Held
The Tribunal noted that the assessee claimed not to have received the notices from the Assessing Officer, preventing them from participating in the proceedings. In the interest of justice, the Tribunal set aside the assessment orders and the orders of the First Appellate Authority, restoring the matter for fresh adjudication after providing the assessee a reasonable opportunity to be heard.
Key Issues
Whether the assessee was prevented by sufficient cause from participating in the assessment proceedings, and if so, whether the case should be restored for de novo assessment.
Sections Cited
144, 69, 115BBE
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Income Tax Appellate Tribunal, AGRA BENCH ‘SMC’ AGRA
Before: SHRI SUNIL KUMAR SINGH & SHRI BRAJESH KUMAR SINGH
the assessment order. No compliance was made during the assessment proceedings. Further, during the assessment proceedings, it was noticed by the Assessing Officer that the assessee had made cash deposits of Rs.95,21,200/- and there were other credit entries appearing in the bank account amounting to Rs.36,01,2019/- totalling to Rs.1,31,22,419/-. The Assessing Officer treated the cash deposits of Rs.19,62,500/- during the demonetization period as unexplained money u/s 69 r.w.s. 115BBE of the Act. In respect of balance credit entries amounting to Rs.1,11,59,919/-, (Rs.1,31,22,419/- - Rs.19,62,500/-) the Assessing Officer treated an amount equal to 8% of total credits as net profit and added a sum of Rs.8,92,794/-to the total income of the assessee. The Ld. CIT(A) dismissed the appeal ex-parte of the assessee.
Ground No.3 raised in is similar to ground no.3 raised in decided by us in earlier part of this order. Therefore, our above decision would apply mutatis-mutandis to this ground of the appeal. Accordingly, the grounds raised by the assessee are allowed for statistical purpose.
Finally, both appeals of the assessee are allowed for statistical purpose.
Order pronounced in the open court on 2nd April, 2025.