SLO STEELS LTD,CHENNAI vs. INCOME TAX OFFICER, CHENNAI
What did the Tribunal hold?
The Tribunal noted that an ex-parte order was passed by the CIT(A) due to the assessee's non-participation, violating principles of natural justice. Therefore, the case was restored to the CIT(A) for a fresh adjudication.
What were the facts?
The assessee, engaged in wholesale trading of iron and steel scraps, filed its return for AY 2018-19. The Assessing Officer made an addition of Rs. 16,75,000 under Section 68 for unexplained cash credit.
What were the issues?
Whether the ex-parte order passed by the CIT(A) without providing a reasonable opportunity to the assessee is valid. The issue of unexplained cash credit under Section 68.
Which sections of the Income-tax Act were involved?
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, ‘B’ BENCH, CHENNAI
Before: SHRI ABY T VARKEY, HON’BLE & SHRI S. R. RAGHUNATHA, HON’BLE
आदेश /O R D E R
PER S. R. RAGHUNATHA, ACCOUNTANT MEMBER:
This appeal by the assessee is filed against the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi, for the assessment year 2018-19, vide order dated 02.11.2023.
The brief facts are that, the assessee is a limited company engaged in wholesale trading of iron and steel scraps and products. The assessee has filed its return of income for :-2-: ITA. No: 1641/Chny/2023 the assessment year 2018-19 on 31.10.2018. The case was selected for complete scrutiny assessment under E-assessment scheme and accordingly, notice was issued u/s. 143(2) of the Income-tax Act, 1961 (hereinafter referred to as “the Act”) dated 22.09.2019. The assessment has been completed by National e-assessment center, Delhi, after giving sufficient opportunities of obtaining the details required for assessment from the assessee and passed assessment order on 16.04.2021, by making additions of Rs.16,75,000/- as unexplained cash credit u/s. 68 of the Act stating that the assessee has failed to justify source of cash deposits made during the year.
Aggrieved by the assessment order, the assessee filed an appeal before the ld. CIT(A) on 08.05.2021. Subsequently, the first appellate authority issued four notices by fixing the hearing dates from 12.01.2022 to 19.10.2023 and passed an exparte order dated 02.11.2023, confirming the Assessing Officer’s order. Aggrieved by the order of the ld. CIT(A), the assessee has preferred this appeal before us.
:-3-: ITA. No: 1641/Chny/2023 4. Per contra, the ld. DR has opposed the plea of assessee to remit back the case to the ld. CIT(A) as the ld. DR does not want us to give one more innings to the assessee.
We have heard the rival contentions and gone through the facts and circumstances of the case. We noted that assessee is engaged in wholesale trading of iron and steel scraps and products and due to non-participation before the CIT(A) by the assessee and hence, the exparte order has been passed by the First Appellate Authority. The plea of the assessee was that the non-appearance/participation was not deliberate and the ld. AR undertakes to appear before the authorities, provided an opportunity is given. Since, exparte order has been passed, we deem it fit to restore the issue back to the ld. CIT(A), since there is violation of natural justice and non-compliance of sub-section (6) of section 250 of the Act and direct the CIT(A) to adjudicate the issue, after providing reasonable opportunity to the assessee. Needless to say, assessee to be diligent and is given liberty to file written submissions and relevant documents if advices to do so during the appellate proceedings and the ld. CIT(A) to pass speaking order in accordance to law.
:-4-: ITA. No: 1641/Chny/2023
In the result, appeal filed by the assessee is allowed for statistical purposes.
More judgments on Section 68
- ACIT Central Bilaspur, Bilaspur vs Arun Kumar Agrawal, SaktiITSSA 26/RPR/2025[2018-19]Status: Disposed21 Oct 2026AY 2018-19
- Neo Incorporation, Rajkot vs DCIT Circle- 1(2), RajkotITA 471/RJT/2026[2012-2013]Status: Disposed21 Oct 2026AY 2012-2013
- Bliss Dealtrade Private Limited, Kolkata vs Income Tax Officer - Ward 9(2) Kolkata…ITA 208/KOL/2026[2012-13]Status: Disposed21 Oct 2026AY 2012-13
- Hemal Paresh Madeka, Rajkot vs Asst.Commissioner of Income Tax…ITA 955/RJT/2026[2020-21]Status: Disposed19 Oct 2026AY 2020-21
- Ajaybhai Dineshbhai Bagdai, Near Central… vs The Income Tax Officer, Ward-1(2)(1), New…ITA 74/RJT/2026[2013-14]Status: Disposed19 Oct 2026AY 2013-14
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