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Income Tax Appellate Tribunal, INDORE BENCH, INDORE
This appeal by assessee is directed against the order dated 14.02.2024 of the Commissioner of Income Tax (Appeal) National Faceless Appeal Centre (NFAC) Delhi, for A.Y.2017-18. The assesse has raised following grounds of appeal:
“1. That, the learned CIT(A) as well as the Id. AO grossly erred, both on facts and in law, in passing the ex-parte orders without giving proper and effective opportunity of being heard to the appellant.
ITANo.339/Ind/2024 Mohm Ilyas Menon 2. That, without prejudice to the above, the learned CIT(A) grossly erred, both on facts and in law, in confirming the action of the AO for determining the income of the appellant at Rs.59,60,340/- for the relevant assessment year as against the returned income of Rs.4,01,340/- by framing an Assessment Order under s. 147 r.w.s. 144 of the Income-Tax Act, 1961, without affording proper opportunity of being heard to the appellant, which is quite illegal, bad-in-law and void-ab-initio.
That, without prejudice to the above, the learned CIT(A) grossly erred, both on facts and in law, in confirming the action of the ld. AO for making an addition of Rs.55,59,000/-u/s. 69A r.w.s. 115BBE of the Act on account of unexplained cash deposits in bank account without properly considering and appreciating the facts and circumstances of the case of the appellant. 4.That, the appellant further craves leave to add, alter or amend the foregoing ground of appeal
as and when considered necessary.”
2. At the time of hearing Ld. AR of the assessee has submitted that the CIT(A) has dismissed the appeal of the assessee for non- prosecution when there was no response on behalf of the assessee to the notices issued through e-mail. He has pointed out that all these notices as mentioned in para 3 of the impugned order were issued by the CIT(A) within short span of 20 days and therefore, the assesse was not given a proper and effectives opportunity to respond to the notices issued by the CIT(A). He has pleaded that the assessee may be given one more opportunity to explain its case and produce the relevant evidence in support of the deposit made in the bank account. He has further submitted that the AO has passed ex-parte order u/s 144 of the Act and therefore, the matter may be remanded to the record of the AO for fresh adjudication.
ITANo.339/Ind/2024 Mohm Ilyas Menon 3. On the other hand, ld. DR has raised no serious objection if the matter is remanded to the record of the AO for fresh adjudication.
We have considered the rival submission and carefully perused impugned order of the CIT(A). The CIT(A) has dismissed the appeal of the assessee for want of any details, documents or submissions filed by the assesse in response to the various notices issued. The details of the notices were given in para 3 of the impugned order as under:
Date of Date of hearing Mode of Remarks issue of service notice 18.01.2024 22.01.2024 E-mail No response has been received 23.01.2024 29.01.2024 E-mail No response has been received E-mail 01.02.2024 06.02.2024 No response has been received E-mail 07.02.2024 12.02.2024 No response has been received 4.1 We find force in the contention of the Ld. AR that all these notices were issued in a short span of period of 20 days and therefore, the assessee might not have the knowledge about these Page 3 of 4
ITANo.339/Ind/2024 Mohm Ilyas Menon notices before the impugned order was passed on 14.02.2024. Further the CIT(A) has not given finding on the merits of the issues but appeal of the assesse was dismissed for non-prosecution. Accordingly in the facts and circumstances of the case the impugned order of the CIT(A) is set aside and the matter is remanded to the record of the jurisdictional AO for fresh adjudication after proper verification and examination of the supporting evidences to be filed by the assessee.
In the result, the appeal of the assessee is allowed for statistical purposes.
Order pronounced in the open court on 22.08.2024.