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Facts
The assessee, an individual and non-filer, had deposited a significant sum in cash and sold immovable property. The Assessing Officer (AO) reopened the case and made additions based on alleged unaccounted income, disallowance of LTCG exemption, commission income, and other computation income. The assessee failed to provide documentary evidence.
Held
The Tribunal noted that the assessee failed to appear before the CIT(A) despite notices. However, considering the principles of natural justice, the Tribunal decided to provide the assessee one more opportunity to present their case before the CIT(A) for de novo adjudication.
Key Issues
Whether the assessee was provided with adequate opportunity of hearing before the lower authorities, and whether the case should be remanded for de novo adjudication to ensure principles of natural justice are followed.
Sections Cited
147, 144, 144B, 148, 69A, 54, 194D
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, ‘A’ BENCH, CHENNAI
Before: HON’BLE SHRI MANOJ KUMAR AGGARWAL & HON’BLE SHRI MANU KUMAR GIRI
(िनधा�रणवष� / Assessment Year: 2017-2018) Jeyasekaran Balaji, Vs. The Income Tax Officer, 126E, Main road, Ward 1, Nanni Ammal Pettai, Dindigul. Dindigul 624 001. [PAN: AEGPB 9710G] (अपीलाथ�/Appellant) (��यथ�/Respondent) अपीलाथ� क� ओर से/ Appellant by : Shri B. Agnus Jennifer, Advocate ��यथ� क� ओर से /Respondent by :Shri Ashwin D Gowda, IRS, Addl. CIT. सुनवाई क� तार�ख/Date of Hearing : 21.10.2024 घोषणा क� तार�ख /Date of Pronouncement : 23.10.2024 आदेश / O R D E R PER MANU KUMAR GIRI (Judicial Member) This appeal by the assessee is arising out of the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi in order No.ITBA/NFAC/S/250/2024-25/1065441098 (1) dated 06.06.2024. The assessment was framed by the Additional /Joint/Deputy /Assistant Commissioner of Income Tax, National Faceless Assessment Centre, Delhi for the assessment year 2017-18 u/s.147 r.w.s. 144 r.w.s.144B of the Income Tax Act, 1961 (hereinafter ‘the Act’), vide order dated 21.03.2022.
2. The brief facts of the case are that assessee is an individual and he is an non filer of Return of Income. However, the Department was in possession of the information that the F.Y. 2016-17 relevant to A.Y. 2017-18, that the appellant had deposited cash in Current Account to the tune of Rs. 1,20,20,651/- and also sold immovable property of Rs. 55,00,000/-. Hence, the case was reopened by issue of notice u/s. 148 of the Act dated 29.03.2021. During the course of assessment proceedings, the appellant failed to substantiate by filing documentary evidences to support cash deposits and in respect to other additions. The AO completed assessment u/s. 147 rws 144 on 21.03.2022, after making the following disallowances :- i Treating cash withdrawal as unaccounted and unexplained income u/s. 69A of the Act Rs. 1,12,20,654/-. ii Disallowance of claim of LTCG exemption u/s. 54 in the absence of documentary evidences Rs. 38,12,500/-. iii Commission Income on which TDS deducted u/s. 194D Rs.2240. iv Income as per computation furnished by the appellant during the course of the assessment Rs.4,19,533/-.
Aggrieved assessee preferred an appeal before the ld.CIT(A), who dismissed 3. the appeal of assessee on merits, although assessee failed to appear before the ld.CIT(A) despite five notices issued. Now, the assessee is in further appeal before us. At the outset, Ld. Counsel for the appellant submitted that Ld. CIT(A) had 4. not properly followed the principles of natural justice in true spirit. Ld.CIT(A) issued notices which were inadvertently not noticed by the assessee. Ld. Counsel for the appellant further prayed that if an adequate opportunity of hearing is given before
We have gone through the orders of lower authorities and submissions addressed by the parties before us. We are of the considered view that in the interest of justice assessee should be given one more opportunity before ld.CIT(A) to prosecute his case. Therefore, in the light of aforesaid factual position we deem it fit to set aside this appeal to the file of ld.CIT(A) for denovo adjudication of appeal. The Ld.CIT(A) who shall proceed for denovo adjudication of appeal after providing proper opportunity of hearing to the assessee. The assessee is directed to substantiate its case forthwith without any fail, failing which Ld.CIT(A) shall be at liberty to proceed with the appellate proceedings as per law.
In the result, appeal filed by the assessee is allowed for statistical purpose. Order pronounced in the open court on 23rd day of October, 2024 at Chennai.