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Facts
The assessee's appeal for AY 2012-13 arose from an order confirming an assessment of Rs. 188.18 Lacs, representing bank credits, made by the Assessing Officer under section 147 r.w.s. 144. The assessee failed to provide any representation or substantiation regarding the source of cash deposits.
Held
The Tribunal acknowledged the assessee's negligence and failure to appear or represent the case. However, in the interest of natural justice, the Tribunal set aside the impugned order and restored the assessment to the Assessing Officer for a de novo assessment, directing the assessee to substantiate its case.
Key Issues
Whether the assessment of income based on unexplained bank credits is valid when the assessee fails to substantiate the source of such deposits, and whether natural justice principles warrant a de novo assessment in such circumstances.
Sections Cited
147, 144
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Income Tax Appellate Tribunal, “A” BENCH, CHENNAI
Before: HON’BLE SHRI ABY T. VARKEY, JM & HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM
(िनधा*रणवष* / Assessment Year: 2012-13) Mr. Rex Dennes Jayaseelan ITO बनाम/ No.8, Old No.9/5, Non-Corporate Ward-19(7), South Gangai Ammam Koil 2nd Street, Chennai. Vs. Choolaimedu, Chennai-600 094. �थायीलेखासं./जीआइआरसं./PAN/GIR No. AEWPJ-4215-L (अपीलाथ�/Appellant) : (� थ� / Respondent) अपीलाथ�कीओरसे/ Appellant by : None � थ�कीओरसे/Respondent by : Dr. Samuel Pitta (JCIT) -Ld. DR सुनवाईकीतारीख/Date of Hearing : 21-08-2024 घोषणाकीतारीख /Date of Pronouncement : 03-09-2024 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aforesaid appeal by assessee for Assessment Year (AY) 2012-13 arises out of the order of learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] dated 28-02-2024 in the matter of an assessment framed by Ld. Assessing Officer [AO] u/s.147 r.w.s. 144 of the Act on 12-12-2019. The sole grievance of the assessee is assessment of income at Rs.188.18 Lacs which represent credits in the bank accounts. The Ld. CIT(A) confirmed the same since the assessee failed to make any representation therein despite being provided with various opportunities of hearing. Aggrieved, the assessee is in further appeal before us. None has appeared for assessee during hearing before us. The adjournment sought by Ld. AR was rejected. The Ld. Sr. DR has pleaded for dismissal of the appeal on the ground that the assessee could not substantiate the source of cash deposits. The registry has noted delay of 23 days in the appeal, which stand condoned 2. Though the assessee has remained negligent, however, keeping in mind the principle of natural justice, we deem it fit to provide another opportunity of hearing to the assessee. Accordingly, the impugned order is set aside and the assessment is restored back to the file of Ld. AO for de novo assessment with a direction to the assessee to substantiate its case.
The appeal stand allowed for statistical purposes. Order pronounced on 3rd September, 2024