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Facts
The assessee filed an appeal against the ex-parte order of the NFAC. The NFAC had dismissed the appeal stating that the assessee was given ample opportunities but did not respond. The assessee contended that they had filed an adjournment application which was not considered.
Held
The Tribunal noted that the NFAC's order was passed ex-parte without adjudicating the issues on merits. Therefore, in the interest of justice, the appeal was restored to the NFAC for de novo adjudication.
Key Issues
Whether the NFAC erred in passing an ex-parte order without considering the assessee's adjournment application and adjudicating the grounds of appeal on merits. Whether the additions made by the AO under various sections of the Income Tax Act were justified.
Sections Cited
144, 69A, 115BBE, 271AAC(1), 272A(1)(d), 271F, 234A, 234B
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, AGRA BENCH “SMC”: AGRA
O R D E R PER M. BALAGANESH, A. M.: 1. The appeal in AY2017-18, arises out of the order of the National Faceless Appeal Centre (NFAC), Delhi [hereinafter referred to as ‘ld. NFAC’, in short] dated 07.05.2024 against the order of assessment passed u/s 144 of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’) dated 23.12.2019 by the Assessing Officer, ITO, Ward-2(1), Gwalior (hereinafter referred to as ‘ld. AO’).
The assessee has raised the following grounds of appeal:-
1. That, on the facts and circumstances of the case and in law, and in any view of the matter, the Ld. authorities below have erred in passing ex- parte order and dismissing the appeal stating in para 2.1 at page 2 of the appeal order that "The appellant had been given ample opportunities by way of issuing notices as detailed above but the appellant had neither responded to the notices nor filed any written submission in compliance to such notices issued." Whereas, the appellant has filed an application for adjournment on 26.04.2024 i.e. on the date of hearing, which was neither considered nor rejected.
2. That, on the facts and circumstances of the case and in law, and in any view of the matter, the Ld. CIT(A) has erred in not deciding the following grounds of appeal raised before him:
1. That, on the facts and circumstances of the case and in law and in any view of the matter, the impugned assessment order and addition made therein is unjustified and not according to law.
2. That, on the facts and circumstances of the case and in law and in any view of the matter, the Ld. Assessing Officer has erred in completing the assessment u/s 144 of the Income Tax Act, 1961.
3. That, on the facts and circumstances of the case and in law and in any view of the matter, the Ld. Assessing Officer has erred in making Addition of Rs. 18,24,500/- in respect of cash deposit in bank considering it as alleged unexplained money invoking provision of section 69A of the Income Tax Act, 1961 in following bank accounts: Name, address of the bank and Date of cash Amount account number deposit Punjab National Bank, Gwalior 22-11-2016 50,000/- A/c No. 3237002100027216 28-12-2016 3,00,000/- Punjab National Bank, Gwalior 22-11-2016 50,000/- A/c No. 3237002100027234 16-12-2016 3,93,000/- Punjab National Bank, Gwalior 22-11-2016 50,000/- A/c No. 3237002100027225 29-12-2016 5,11,500/- Punjab National Bank, Gwalior 4,70,000/- A/c No. 3237002100027243 Total 18,24,500/
4. That, on the facts and circumstances of the case and in law and in any view of the matter, the Ld. Assessing Officer has erred in making Addition of Rs. 13,60,000/- in respect of other deposit considering it as alleged unexplained money invoking provision of section 69A read with section 115BBE of the Income Tax Act, 1961 Name, address of the bank and account number Amount Punjab National Bank, Gwalior A/c No. 6,00,000/- 3237002100027216 Punjab National Bank, Gwalior A/c No. 3,20,000/- 3237002100027234 Punjab National Bank, Gwalior A/c No. 2,20,000/- 3237002100027225 Punjab National Bank, Gwalior 2,20,000/- A/c No. 3237002100027243 Total 13,60,000/- 5. That, on the facts and circumstances of the case and in law and in any view of the matter, the Ld. Assessing Officer has erred in charging income tax at higher rate invoking provision of section 115BBE of the Income Tax Act, 1961 in respect of Rs. 31,84,500/- (18,24,500 plus 13,60,000) considering it as alleged unexplained money invoking provision of section 69A of the Income Tax Act,1961, 6. That, on the facts and circumstances of the case and in law and in any view of the matter, the Ld. Assessing Officer has erred in not allowing reasonable and proper opportunity of hearing.
7. That, on the facts and circumstances of the case and in law and in any view of the matter, the Ld. Assessing Officer has erred in initiating penalty proceedings u/s 271AAC(1) of the Income Tax Act, 1961.
8. That, on the facts and circumstances of the case and in law and in any view of the matter, the Ld. Assessing Officer has erred in initiating penalty proceedings u/s 272A(1) (d) of the Income Tax Act, 1961.
9. That, on the facts and circumstances of the case and in law and in any view of the matter, the Ld. Assessing Officer has erred in initiating penalty proceedings u/s 271F of the Income Tax Act, 1961.
10. That, on the facts and circumstances of the case and in law and in any view of the matter, the Ld. Assessing Officer has erred in charging interest of Rs. 7,13,400/- u/s 234A of the Income Tax Act, 1961.
11. That, on the facts and circumstances of the case and in law and in any view of the matter, the Ld. Assessing Officer has erred in charging interest of Rs. 8,11,800/- u/s 234B of the Income Tax Act, 1961.
3. That, on the facts and circumstances of the case and in law, and in any view of the matter, the Ld. authorities below have erred in not allowing the reasonable and proper opportunity of hearing before passing the order.
4. That, the appellant craves leave to add, amend, withdraw any ground (s) of appeal before and/or at the time of hearing.”
We have heard the rival submissions and perused the materials available on record. The ld AR before us stated that the ld NFAC had passed an exparte order without adjudicating the issue on merits. We find on perusal of the order of the ld NFAC, the same has been decided exparte without the presence of the assessee. Hence we deem it fit and appropriate, in the interest of justice and fair play, to restore this appeal to the file of ld NFAC for de novo adjudication of the grounds raised by the assessee before it in accordance with law. Needless to mention that the assessee be given reasonable opportunity of being heard. The assessee is at liberty to raise additional grounds and file additional evidences, if any, if it so desires. With these directions, 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 06/02/2025.