REKHA RANI SUR,WEST BENGAL vs. ASSISTANT COMMISSIONER CIRCLE 23(1)HOOGHLY, WEST BENGAL

The present appeal has been preferred by the assessee against the order dated 18.07.2024 of the National Faceless Appeal Centre [hereinafter referred to as ‘CIT(A)’] passed u/s 250 of the Income Tax Act (hereinafter referred to as the ‘Act’).

Brief facts of the case are that the assessee is an individual and filed her return of income on 25.10.2017 for the relevant assessment year by declaring total income of Rs.30,75,080/. The case of the assessee was selected for scrutiny and notices u/s 143(2) & 142(1) of the Act were issued. After examining the facts, the Assessing Officer made the additions of Rs.4999440/- in respect of cash deposits made during the demonetization period and Rs.5900720/- in respect of disallowance of expenses claimed by the assessee.

Aggrieved, the assessee filed the appeal before this Tribunal. The ld. AR contended that the impugned order of the ld. CIT(A) is devoid of merit which is contrary to the provisions of section 250(6) of the Act. He, therefore, prayed before the Bench that it is necessary to remand the issue back to the file of the ld. CIT(A) with a direction to decide the appeal on merit.

On the other hand, the ld. DR argued that sufficient opportunities have already been provided to the assessee and the assessee failed to respond properly. The order passed by the ld. CIT(A) was justified on account of failure of the assessee to comply with the notices.

We, after hearing the rival submission of the parties and perusing the materials available on record, find that the order of the ld. CIT(A) is an ex parte order against the assessee, therefore, it is clear that the assessee could not represent her case and the ld. CIT(A) had dismissed the appeal without deciding the appeal on merits only on the ground of non-cooperation on the part of the assessee. We find that dismissal of appeal solely on the procedural ground without examining the merits of the case which is essential u/s 250(6) of the Act, is not justified. We deem it fit to provide the assessee one more opportunity to substantiate here case to ensure just and fair assessment. We, therefore, remand back the issue to the file of the ld. CIT(A) with a direction to re-examine the case on merits including the nature of the cash deposits and disallowance of expenses after giving reasonable opportunity of being heard to the assessee to represent her case. We also direct the assessee Assessment Year: 2017-18 Rekh a Rani Sur to strictly comply with the notices issued by the ld. CIT(A) and furnish all necessary documents to substantiate her claim.

In terms of the above, the appeal of the assessee is allowed for statistical purposes.