NAGAPPA CHETTIYAR SRINIVASAN,KRISHNAGIRI vs. ITO,WARD 1, KRISHNAGIRI, KRISHNAGIRI

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 No. ITBA/NFAC/S/250/2023-24/1058276802 (1) dated 28.11.2023. The assessment was framed by the Income Tax Officer, Ward 1, Krishnagiri, for the assessment year 2017-18 u/s.143(3) of the Income Tax Act, 1961 (hereinafter the ‘Act’), vide order dated 24.12.2019.

At the outset, Ld. Counsel for the appellant submitted that Ld. CIT(A) had not adhered to the principles of natural justice. 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 Ld. CIT(A).

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.

Brief facts of the case are that the Assessing Officer passed assessment order under section 143(3) of the Act vide order dated 24.12.2019 and made addition on account of cash deposits during demonetisation period treated as unexplained investments under section 69 and taxed u/s115BBE of the Act. Upon further appeal, the assessee did not appear before the first appeal authority. Accordingly, the assessment was confirmed on merits against which assessee is in further appeal before us.

We have heard the rival contention and perused the material on record. 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.

In the result, the appeal of the assessee in 2017-2018 is allowed for statistical purpose.