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Facts
The assessee filed an appeal and a stay application against an order passed under Section 144 r.w.s 147 of the Income Tax Act, 1961. The assessment was reopened due to the deposit of Rs. 10,41,000/- in a bank account, which the Assessing Officer treated as income and raised a demand of Rs. 6,66,160/-.
Held
The Tribunal noted that the assessment order was passed ex-parte. Considering that the assessee had deposited 20% of the demand and claimed the funds were from agricultural savings, the Tribunal decided to give the assessee one more opportunity.
Key Issues
Whether to set aside an ex-parte assessment order passed under Section 144 r.w.s 147 and grant an opportunity to the assessee to prove their case, considering the deposit of funds and claim of agricultural income.
Sections Cited
144, 147
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Income Tax Appellate Tribunal, ‘A’ BENCH: CHENNAI
Before: SHRI SS VISWANETHRA RAVI & SHRI JAGADISH
Narayanagr Palanisamy, The Income Tax Officer, 13/20, Koli Thottam, Vs. Non Corporate Ward-4(1), Ravathoor Irugur, Coimbatore. Coimbatore – 641 103. [PAN: BABPP 1521P] (अपीलाथ"/Appellant/Applicant) (""यथ"/Respondent) अपीलाथF की ओर से/ Assessee by : Ms. N.V.Lakshmi, Advocate HIथF की ओर से /Revenue by : Ms. R. Anita, Addl. CIT सुनवाई की तारीख/Date of Hearing : 13.09.2024 घोषणा की तारीख /Date of Pronouncement : 18.09.2024 आदेश / O R D E R PER JAGADISH, A.M : Aforesaid appeal as well as Stay Application filed by the assessee for Assessment Year (AY) 2010-11 arises out of the order of Learned Commissioner of Income Tax, Appeal, Addl/JCIT(A)-1, Guwahati [hereinafter “CIT(A)”] dated 12.03.2024. S.A No.49/Chny/2024 :- 2 -:
The stay application has been filed against the demand raised by Assessing Officer in assessment order passed u/s. 144 r.w.s 147 of the Income Tax Act, 1961 (hereinafter “the Act”). While going through the stay petition, we observed that the assessment has been reopened on the ground that the assessee has deposited cash of Rs.10,41,000/- in the saving bank account held in Axis Bank during Financial Year 2009-10. The A.O has passed ex-parte order u/s. 144 of the Act assessing total income of Rs. 10,41,000/- raising a demand of Rs.6,66,160/-. The Ld. CIT(A) has upheld the order passed u/s. 144 of the Act rejecting the assessee’s arguments that cash was deposited out of savings from the agricultural income.
The Ld. AR has submitted that the assessee has already deposited 20% of the tax demand and the assessment order passed u/s. 144 of the Act. The Ld. AR further submitted that the assessee has sufficient material to prove that the cash deposited out of agriculture income and therefore, one more opportunity should be given before the A.O to prove his case.
The Ld. D.R, on the other hand, opposed the stay application and submitted that the order passed u/s. 144 of the Act should be confirmed as the assessee has not appeared before the A.O.
We have heard the rival submissions, perused the materials available on record and have gone through the stay application and the orders of the A.O & Ld. CIT(A). As the assessment order has been passed u/s 144 of the Act and the evidence need to be examined with the consent of both parties we take up the assessee’s appeal in along with the stay application. The appeal has been filed late by 109 days and the assessee has given the reasons for delay in not filing the appeal in time. After considering the reasons given by the assessee, we condone the delay in filing the appeal.
We have considered the submissions made by the assessee and are opinion that the assessment order has been passed ex-parte and the assessee needs to be given one more opportunity to prove his case before A.O. Accordingly, we set aside the order passed by the A.O and restore the matter back to the file of the A.O for denovo adjudication after giving reasonable opportunity to the assessee. We also direct the assessee to appear before the A.O on the date of hearing without fail. As we have already set aside the assessment
order, the stay application filed by the assessee becomes infructuous.
In view of the above, the appeal filed by the assessee is allowed for S.A No.49/Chny/2024 :- 4 -: statistical purposes and stay application filed by the assessee becomes infructuous.
In the result, the appeal filed by the assessee is allowed for statistical purposes and the stay application filed by the assessee becomes infructuous.
Order pronounced on 18th September, 2024. (यस यस िव"ने" रिव) (जगदीश) (Jagadish) (SS Viswanethra Ravi) लेखा सद"य लेखा सद"य /Accountant Member लेखा लेखा सद"य सद"य सद"य / Judicial Member "याियक सद"य "याियक "याियक "याियक सद"य सद"य चे"ई/Chennai, "दनांक/Dated: 18th September, 2024. EDN/-