PALANIAPPAN RAVI,NAMAKKAL vs. ITO, WARD-2, THIRUVHENGODE

It is noticed by us while dictating the order that assessment year mentioned in Form 36 and order sheet are wrongly referred as AY 2017-18 whereas on grounds of appeal, impugned order and assessment order it is mentioned as AY 2012-13. Hence, we proceed taking AY as 2012-13 on the basis of impugned order. Registry is directed to correct the assessment year in its computer data for accurate information.

At the outset, Ld. Counsel for the appellant submitted that Ld. CIT(A) had violated the principles of natural justice in sending purported notices 24.12.2021, 07.02.2022 and 12.05.2023 etc to the Assessee. Ld. Counsel for the appellant further prayed that if an adequate opportunity of hearing is given to appellant, appellant would prosecute his case properly before the lower authorities. The Ld. JCIT-DR Mr. S. Easwar pleaded for dismissal of the appeal on the ground that the assessee failed to appear even before the ld. first appellate authority.

From the case record, it emerges that while completing assessment u/s 144 of the Income Tax Act, 1961 (In short ‘the Act’) the assessing officer (In short ‘AO’) made an addition of Rs.23,32,961/- maintained with State Bank of India at SME Branch, Pallipalayam on account of unexplained money under section 69A of the Act. Upon further appeal, the position remained the same and the assessee did not appear before the first appeal authority also. Accordingly, the appeal is dismissed on merits by the Ld.CIT(A) for the reason that assessee failed to file relevant documents, against which assessee is in further appeal before us.

Though we appreciate the submissions of Ld. Sr. DR however, keeping in mind the ex-parte assessment order u/s 144 of the Act and the principles of natural justice we deem it fit to grant another opportunity of hearing to the assessee to substantiate his case. Accordingly, the impugned order is set aside and the assessment is restored back to the file of Ld. A.O. for de novo assessment after affording proper opportunity of hearing to the assessee subject to cost of Rs.5000/- which shall be deposited by the assessee within 30 days from the date of receipt of this order to ‘Tamil Nadu State Legal Services Authority’ at Hon’ble High Court of Madras. The proof of the same will be furnished by the Assessee before Ld. A.O. whose shall proceed for de novo assessment. The assessee is directed to file cogent evidence, if any, to substantiate his case forthwith without any fail, failing which Ld. A.O. shall be at liberty to proceed with the de novo assessment on merits.

In the result, the appeal stands allowed for a statistical purposes. Order pronounced on 29th day of May, 2024 at Chennai.