S. A. KUMAR,SALEM vs. DCIT CIRCLE-1(1), SALEM
What did the Tribunal hold?
The ITAT, while agreeing with the respondent, set aside the impugned order and restored the appeal to the CIT(A) for fresh adjudication. This was done to grant the assessee another opportunity of hearing in the interest of natural justice.
What were the facts?
The assessee's appeal before the CIT(A) was dismissed due to non-appearance. The Assessing Officer had made additions on account of cash deposits during demonetisation. The assessee is now in further appeal before the ITAT.
What were the issues?
Whether the assessee was denied natural justice by the CIT(A) due to non-appearance, and if a fresh opportunity of hearing should be granted.
Which sections of the Income-tax Act were involved?
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, ‘C’ BENCH, CHENNAI
Before: HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM & HON’BLE SHRI MANU KUMAR GIRI, JM
आदेश / O R D E R MANU KUMAR GIRI (Judicial Member)
This appeal filed by the assessee is directed against the order of the Ld. Commissioner of Income Tax(Appeals)(NFAC) Delhi [CIT(A)] in order The No.ITBA/NFAC/S/250/2023-24/1058094502 (1) dated 21.11.2023. assessment was framed by the DCIT, Circle-1(1), Salem for the assessment year 2017-18 passed u/s.143(3) of the Income Tax Act, 1961 (hereinafter the ‘Act’), vide order dated 17.12.2019
At the time of hearing none appeared for the assessee.
On the other hand, the Ld. Sr. DR pleaded for dismissal of the appeal on the ground that the assessee failed to appear before the ld. first appeal authority.
From the case record, it emerges that Assessing Officer passed assessment order under section 143(3) of the Act vide order dated 17.12.2019 and made addition on account of cash deposits during demonetisation period treated as unexplained money. Upon further appeal, the assessee did not appear before the first appeal authority. Accordingly, the assessment was confirmed on merits on the basis of statements of facts filed by the Assessee against which assessee is in further appeal before us.
Though we concur with the submissions of Ld. Sr. DR however keeping in mind the principle of natural justice, we deem it fit to grant another opportunity of hearing to the assessee. Accordingly, the impugned order is set aside and the appeal is restored back to the file of Ld. CIT(A) for de novo adjudication after affording proper opportunity of hearing to the assessee. The assessee is directed to substantiate his case forthwith without any fail failing which Ld. CIT(A) shall be at liberty to proceed with the disposal of the appeal on merits. The appeal stands allowed for a statistical purposes.
In the result, the appeal of the assessee in 2017-2018 is allowed for statistical purpose.
Order pronounced in the open court at the time of hearing on 17th day of April , 2024, at Chennai.
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