VENKATESAN, CHENNAI,CHENNAI vs. ITO, NON CORPORATE WARD 8(1), CHENNAI, CHENNAI

Brief facts of the case are that assessee is an individual engaged in business of wholesale trading in vegetable and fruits. As per the information received in insight portal under the category ’’CRIU/VRU High risk cases, it was found that assessee had made cash deposits of Rs.2,77,93,600/-. A notice u/s.148 of the Act was issued on 29.03.2021. However, assessee did not file return of income in response to notice issued u/s.148 of the Act. As assessee failed to file the return of income, the ld. Assessing Officer added a sum of Rs.2,77,93,600/- as unexplained money u/s.69A of the Act to the total income of the assessee. Aggrieved, assessee preferred an appeal before the ld. CIT(A).

The CIT(A) also confirmed the action of the AO for the reason that the assessee has not filed any reply to the notices issued. Aggrieved, assessee preferred an appeal before us.

Now before us, the ld.counsel for the assessee submitted that the assessment was framed ex-parte and best judgment assessment u/s.144 of the Act for assessing the cash deposits made by assessee amounting to 3 Rs.2,77,93,600/- and he requested to setting aside the appeal to the file of the ld. Assessing Officer.

When these facts were confronted to ld. Senior Departmental Representative, he objected to setting aside of this appeal to the file of the Assessing Officer for the reason that the AO as well as CIT(A) has provided many opportunities but the assessee did not avail for the reasons best known to him.

We have heard rival contentions and gone through facts and circumstances of the case. We noted that the assessee was provided many opportunities by both the authorities below but assessee did not avail the opportunities but in the interest of natural justice, we are of the view that to do substantial justice one more opportunity be provided to the assessee to represent the true and clear facts before the AO and hence, we set aside the orders of the lower authorities i.e., the AO and the CIT(A) and remand the matter back to the file of the AO with a cost of Rs.25,000/- to be paid to the Tamil Nadu State Legal Services Authority at Hon’ble High Court of Madras on or before 26.04.2024. The assessee will pay this cost and produce the receipt before the AO. In term of the above, the orders of the lower authorities are set aside and matter restored back to the file of the AO for fresh adjudication. Needless to say that the AO will allow reasonable opportunity of being heard