VEERAPPAN BANUMATHI,NAMAKKAL vs. ITO, WARD-2, NAMAKKAL, NAMAKKAL

This appeal by the assessee is arising out of the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi in order No.ITBA/NFAC/S/250/2023-24/1058014158 (1) dated 17.11.2023. The assessment was framed by the Income Tax Officer, Ward 2, Namakkal 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 time of hearing none appeared for the assessee. The Ld. Sr. Departmental Representative 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 Assessing Officer made addition on account of unexplained cash deposit u/s 69A read with 115BBE and estimated the income u/s 44AD of the Income Tax Act. Upon further appeal, the assessee did not appear before the first appeal authority. Therefore, on the basis of material on record, ld. CIT(A) did not interfere with the order of the ld. Assessing Officer hence rejected the appeal. Now 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.