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Facts
The assessee's bank account showed a cash deposit, which led to the reopening of the assessment under section 147 of the Income-tax Act. The Assessing Officer made additions for this deposit and for interest received, treating them as income from undisclosed sources.
Held
The Tribunal noted that the CIT(Appeals) passed an ex-parte order without substantial discussion on merits, failing to provide points for determination, decision, and reasons as required by section 250(6). The appeal was filed with a 12-day delay, which was condoned.
Key Issues
Whether the ex-parte order passed by the CIT(Appeals) was valid without proper opportunity for hearing and proper adjudication on merits, and if the delay in filing the appeal should be condoned.
Sections Cited
147, 69A, 144, 250(6)
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 12.11.2024 passed in Appeal No.CIT(A), Gwalior/10636/2018-19 by the Ld. Commissioner of Income-tax (Appeals), NFAC, Delhi u/s. 250(6) of the Income-tax Act, 1961 (hereinafter referred to as “the Act”), wherein the ld. CIT(Appeals) confirmed the addition of Rs.1,38,98,450/- made by the learned Assessing Officer vide assessment order dt. 13.11.2018 passed u/s. 147/144 of the Act.
Brief facts state that on the basis of AIR information, case of the asssessee was reopened u/s. 147 of the Act to verify the cash deposit of Rs.1,38,46,390/- in assessee’s bank account No.3139000100142750 maintained with Punjab National Bank, Branch Sukhpur (Ashok Nagar). Since the appellant did not explain the nature and source of the aforesaid cash deposit, the Assessing officer made addition of the Rs.1,38,46,390/- in the hands of assessee as income from undisclosed sources u/s. 69A of the Act, vide assessment order dated 13.11.2018 passed u/s. 144 r.w.s. 147 of the Act. Besides, the Assessing Officer also added a sum of Rs.52061/- to the income of the assessee, being interest received in the said bank account.
Aggrieved, the assessee preferred an appeal before the learned CIT(Appeals) who confirmed the additions made by the learned Assessing Officer and dismissed assessee’s first appeal.
During the course of hearing an adjournment application was filed on behalf of the assessee, which was rejected. Learned representative for the assessee, thereafter, submitted that the 12 days’ delay in filing this appeal be condoned. Further submitted that the impugned order has been passed by the ld. CIT(Appeals), ex parte without affording reasonable opportunity of hearing to the assessee, hence, in violation of the principles of natural justice.
Prayed to set aside the impugned order.
Learned DR has submitted that the assessee was provided sufficient opportunity of hearing by learned CIT(Appeals) on various occasions, but for no avail. Learned DR has supported the impugned order.
We notice that this appeal has been filed on 23.01.2025 against the impugned order dt. 12.11.2024 passed by Ld. CIT(Appeals) by a delay of 12 days. In the interest of justice, the delay is condoned.
It transpires from the perusal of record that the assessee did not respond to the notices issued by the first appellate authority on 23.09.2024, 04.10.2024 etc. It is however noticed that learned CIT(Appeals) passed ex- parte impugned order without any substantial discussion on the merits of the case, whereas learned 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
3 | P a g e 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 dt. 12.11.2024 is set aside.
Order pronounced in the open court on 02.04.2025.