PACHIYAPPAN SATHIYAMURTHY,DHARMAPURI vs. ITO, WARD-1,, DHARMAPURI

Assessee is an individual has filed his return of income for AY 2017-18 on 02.01.2018 declaring the total income of Rs.3,26,710/-. The case was selected for complete scrutiny through CASS. Reason for selection was to verify cash deposits in bank during demonetization period. During assessment proceedings, the assessee was not able to justify the source for cash deposits in bank accounts. Hence, ld.AO made an additions of Rs.19,13,000/- (cash deposits) u/s 69A and Rs.5,56,814/- (disallowance of agricultural income) ex-parte vide order dated 12.12.2019 u/s. 144 of the Income Tax Act, 1961 (“Act’ in short). Aggrieved assessee preferred an appeal before the ld.CIT(A), who dismissed the appeal of assessee on merits although assessee failed to appear before the ld.CIT(A) despite several notices. Assessee is in further appeal before us.

We have gone through the orders of lower authorities and submissions addressed by the parties before us. Looking into the entire factual scenario, we are of the considered view that in the interest of justice assessee should be given adequate opportunity before ld.AO itself to prosecute his case from the grass root level. Therefore, in the light of aforesaid factual position we deem it fit to set aside this appeal to the file of ld.AO for denovo assessment. The Ld.AO whose shall proceed for denovo assessment after providing proper opportunity of hearing to the assessee. The assessee is directed to substantiate its case forthwith without any fail, failing which Ld.AO shall be at liberty to proceed with the disposal of the appeal as per law.

In the result, appeal filed by the assessee is allowed for statistical purpose.