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Income Tax Appellate Tribunal, ‘B’ BENCH, CHENNAI
Before: SHRI S.S. VISWANETHRA RAVI, HON’BLE & SHRI S. R. RAGHUNATHA, HON’BLE
PER S. R. RAGHUNATHA, ACCOUNTANT MEMBER:
This appeal filed by the assessee is directed against the order passed by the learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi, dated 14.06.2024 and pertains to assessment year 2019-20.
The assessee is a trust at Chennai filed its return of income for the assessment year 2019-20 on 22.07.2020, admitting Nil income after claiming exemptions u/s. 11 of the Act. During the :-2-: ITA. No: 2146/Chny/2024 assessment year 2019-20, the trust had deposited cash of Rs.1,45,70,000/- to its Indian Bank account. Based on that information, the case was reopened and an exparte assessment order u/s. 147 r.w.s. 144 r.w.s. 144B of the Act dated 10.05.2023 has been passed by making an addition of entire cash deposits of Rs.1,45,70,000/- as unexplained money u/s. 69 of the Act due to non-participation of the assessee in the assessment proceedings. The assessee had been provided with many opportunities during the assessment proceedings, but failed to comply with any of the notices. Aggrieved by the order of the Assessing Officer, the assessee preferred an appeal before the ld.CIT(A), NFAC.
The ld.AR for the assessee took us through the Para 5 of the ld.CIT(A) order, wherein many opportunities were given to the assessee to participate in the appellate proceedings as detailed below: “5. Several opportunities have been allowed to the appellant in terms of the notices fixed for hearing of the appeal under section 250 of the Act issued to the appellant. No compliance has been made by the appellant till date. The details of the opportunities allowed to the appellant to represent in this case are tabulated as under: DIN No Date of Notice Date of Remarks hearing fixed 1060447300 02.02.2024 19.02.2024 No reply 1061270532 21.02.2024 07.03.2024 No reply 1062823565 18.03.2024 02.04.2024 No reply 1065211467 29.05.2024 13.06.2024 No reply
:-3-: ITA. No: 2146/Chny/2024 Since, the assessee has not responded for any of the notices, the ld.CIT(A) confirmed the order of the Assessing Officer by dismissing the appeal of the assessee. Aggrieved by the order of the ld.CIT(A), the assessee is in appeal before us.
The ld.AR stated that the main trustee of the trust is aged and also no conversant with the advanced technology of computer and e-mails and hence, the assessee has failed to notice the notices issued by both the Assessing Officer and that of the ld.CIT(A) and hence could not participate in the proceedings. Therefore, the ld.AR prayed for setting aside the order of the ld.CIT(A) and remand the case back to the file of the Assessing Officer for denovo assessment. Further, the ld.AR undertake to furnish entire details of the trust’s receipts and payments/expenditure during the assessment proceedings.
Per contra, the ld.DR prayed for dismissing the appeal filed by the assessee.
We have heard the rival contentions and gone through the materials available on record and orders of the authorities below. We note that the assessee had not participated in the assessment proceedings and hence, the Assessing Officer has passed an :-4-: ITA. No: 2146/Chny/2024 exparte assessment order by considering the entire cash deposits as income of the assessee u/s. 69 of the Act. Since, exparte order has been passed by the Assessing Officer, we deem it fit to set aside the order of the ld.CIT(A) and remit the matter back to the file of the AO by relying on the decision of the Hon’ble Supreme Court in the case of Tin Box Company vs CIT, [2001] 249 ITR 216 (SC) and direct AO to denovo frame the order in accordance to law, after providing reasonable opportunity to the assessee. Needless to say, assessee to be diligent and file written submissions and relevant documents if advised so.