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Facts
The assessee filed an appeal against the order of the CIT(A) which upheld an assessment order passed u/s 144 of the Income-tax Act, 1961. The appeal concerned an addition of Rs. 31,50,900/- made on account of cash deposits.
Held
The Tribunal noted that the NFAC decided the issue ex parte without adjudicating on merits. Therefore, the Tribunal restored the appeal to the NFAC for a fresh adjudication.
Key Issues
Whether the NFAC was justified in sustaining the addition of Rs. 31,50,900/- on account of cash deposits.
Sections Cited
144, 1961
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 AY 2017-18, arises out of the order of the Commissioner of Income Tax (Appeals)-2, Mumbai [hereinafter referred to as ‘ld. CIT(A)’, in short] dated 31.01.2024 against the order of assessment passed u/s 144 of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’) dated by the Assessing Officer, ITO, Ward-4(3)(1), Etah (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 31,50,900/- on account of cash deposits in the facts and circumstances of the instant case.
We have heard the rival submissions 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.