KUMAR,CUDDALORE vs. ITO, WARD-2,, CUDDALORE

Aforesaid appeal by assessee for Assessment Year (AY) 2017-18 arises out of the order of learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] dated 28-12-2023 in the matter of an assessment framed by Ld. Assessing Officer [AO] u/s. 147 r.w.s 144 r.w.s 144B of the Act on 23-03- 2022. The assessee did not file return of income. The assessment has been framed on best judgment basis wherein Ld. AO made addition of cash deposit for Rs.72.52 Lacs u/s.69A of the Act. The assessee preferred further appeal. The Ld. CIT(A), invoking the provisions of Sec.249(4)(b), held that the assessee was to pay amount of advance tax otherwise the appeal would not be admitted. Since the assessee failed to do so, the appeal was not admitted. Aggrieved, the assessee is in further appeal before us. The Ld. AR submitted that the assessee did not file return of income on the belief that it had no tax liability. The Ld. Sr. DR submitted that the assessee is a non-filer and failed to substantiate its case.

It emerges that the assessee has not filed its return for the year and the sole addition represent cash deposited by the assessee during demonetization period. We find that that the appeal has been dismissed merely on technical default without going into the merits of the addition. Nevertheless, considering the fact that the assessee has remained unrepresented before lower authorities, we set aside the assessment and restore the matter back to the file of Ld. AO for de novo assessment with a direction to the assessee to substantiate its case forthwith. A reasonable opportunity of hearing shall be granted to the assessee. 3. The appeal stand allowed for statistical purposes. Order pronounced on 6th May, 2024 (MANU KUMAR GIRI) (MANOJ KUMAR AGGARWAL) "ाियक सद4 / JUDICIAL MEMBER लेखा सद4 / ACCOUNTANT MEMBER चे4ई Chennai; िदनांक Dated : 06-05-2024 DS आदेशकीNितिलिपअ/ेिषत/Copy of the Order forwarded to : 1. अपीलाथ"/Appellant 2. " थ"/Respondent 3. आयकरआयु=/CIT 4. िवभागीय"ितिनिध/DR 5. गाडBफाईल/GF