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Facts
The assessee's appeal for AY 2017-18 was against the NFAC's order, which sustained additions for cash deposits of Rs. 8,84,073/- and disallowance for investments under Sections 80C to 80GG of Rs. 7,94,500/-. The assessee did not appear before the Tribunal.
Held
The Tribunal found that the NFAC had decided the issue ex parte without adjudicating on merits. Therefore, in the interest of justice, the appeal was restored to the NFAC for de novo adjudication.
Key Issues
Whether the NFAC was justified in sustaining the additions for cash deposits and disallowances for investments, and whether the NFAC's ex-parte decision warrants a de novo adjudication.
Sections Cited
143(3), 80C, 80GG
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, AGRA BENCH “DB”: AGRA
O R D E R PER M. BALAGANESH, A. M.: 1. The appeal in for AY 2017-18, arises out of the order of the National Faceless Appeal Centre (NFAC), Delhi [hereinafter referred to as ‘ld. NFAC’, in short] dated 26.07.2024 against the order of assessment passed u/s 143(3) of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’) dated by the Assessing Officer, ITO, Ward-2(3)(1), Jhansi (hereinafter referred to as ‘ld. AO’).
The only effective issue to be decided in this appeal is as to whether the ld NFAC was justified in sustaining the addition made in the sum of Rs 8.84.073/- on account of cash deposits in the facts and circumstances of the instant case. Further the ld NFAC was justified in sustaining the disallowance made on account of investments made under Section 80C to Section 80GG of the Act for Rs 7,94,500/- in the facts and circumstances of the instant case.
None appeared on behalf of the assessee. We have heard the Ld DR and perused the materials available on record. On perusal of the order of the ld NFAC, we find that the ld NFAC had decided the issue ex parte without adjudicating the issue on merits giving its independent finding. Hence, in the interest of justice and fairplay, we deem it fit and appropriate to restore this appeal to file of ld NFAC for de novo adjudication in accordance with law. Needless to mention the assessee be given reasonable opportunity of being heard. The assessee is directed to cooperate with ld NFAC for expeditious disposal of the appeal by not taking unwarranted adjournments. Hence, the grounds raised by the assessee are allowed for statistical purposes.
In the result, the appeal of the assessee is allowed for statistical purposes.
Order pronounced in the open court on 07/02/2025.