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Income Tax Appellate Tribunal, VISAKHAPATNAM BENCH, VISAKHAPATNAM
Before: SHRI DUVVURU RL REDDY, HON’BLE & SHRI S BALAKRISHNAN, HON’BLE
अपीलधथी की ओर से/ Appellant by : Shri Vinod Suthar, AR प्रत्यधथी की ओर से / Respondent by : Dr.Satyasai Rath, CIT(DR) सुनवधई की तधरीख / Date of Hearing : 28.05.2024 घोर्णध की तधरीख/Date of Pronouncement : 31.05.2024 आदेश /O R D E R
Per Shri Duvvuru RL Reddy, Judicial Member :
This appeal is filed by the assessee against the order of Commissioner of Income Tax (Appeals) [CIT(A)], National Faceless Appeal Centre (NFAC), Delhi, vide DIN & Order No. ITBA/NFAC/S/250/2023-24/1060735163(1) dated 09.02.2024, arising out of order passed u/s 147 r.w.s. 144 of the Income Tax Act, 1961 (in short ‘Act’) dated 25.03.2022 for the Assessment Year (A.Y.) 2017-18.
Venkata Satya Suryanarayana Raju, Kakinada 2. Brief facts of the case by the assessee are that the assessee has filed return of income for AY 2017-18 on 14.03.2018 declaring total income of Rs.13,64,200/-. As per the information available with the department, income declared by the assessee is much lesser than the cash deposit made during FY 2016-17 relevant to AY 2017-18, in the bank accounts. The case of the assessee for FY 2014-15 relevant to AY 2015-16 was opened u/s 147 of the Act and notice u/s 148 of the Act was issued on 30.03.2021 proposing the assessee to assess /reasessess the income/loss and requiring the assessee to furnish a return of income in the prescribed form for the year under consideration. However, the assessee did not furnish any response to this notice and not filed return of income. During assessment proceedings, the assessee was asked vide statutory notices issued u/s 142(1) of the Act to furnish the source of the cash deposited of Rs.11,45,35,650/- with documentary evidences. Several opportunities were provided to the assessee but the assessee failed to furnish the source of the cash deposit in banks accounts. Accordingly, amount of Rs.11,45,35,650/- is added to the income of the assessee for the year under consideration u/s 69A of the Act.
Aggrieved by the order of the AO, the assessee preferred an appeal before the CIT(A) and the Ld.CIT(A) upheld the addition made by the AO and dismissed the appeal of the assessee.
Venkata Satya Suryanarayana Raju, Kakinada 4. Aggrieved by the order of the Ld.CIT(A), the assessee preferred an appeal before the Tribunal by raising eleven grounds in elaborate as filed in Form 36.
The only contention of the Ld.AR is that the Ld.CIT(A) is not justified in dismissing the appeal of the assessee ex-parte by sustaining the additions made by the AO of Rs.11,45,35,650/- u/s 69A of the Act without giving sufficient opportunity of being heard to the assessee. He, therefore, pleaded for an opportunity of being heard before the Ld.CIT(A) in the interest of justice, otherwise, the assessee would suffer great financial loss.
Per contra, the Ld.DR submitted that as observed from the orders of the revenue authorities, the assessee was given sufficient opportunities before the Ld.CIT(A), but the assessee failed to avail the same. Hence, the Ld.CIT(A) is justified in dismissing the appeal of the assessee. The Ld.DR therefore, pleaded to uphold the order passed by the Ld.CIT(A) and dismiss the appeal of the assessee.
We have heard both the parties and perused the material available on record. In the instant case, assessment in the case of the assessee was completed u/s 69A of the Act and the addition made by the AO of Rs.11,45,35,650/- was sustained by the Ld.CIT(A). As contended by the Venkata Satya Suryanarayana Raju, Kakinada Ld.AR that the assessee was not given proper opportunity of being heard before the Ld.CIT(A) to controvert the findings of the revenue authorities and therefore pleaded for an opportunity of being heard before the Ld.CIT(A) in the interest of justice. Keeping in view the aforesaid facts and circumstances of the case and in order to meet the principles of natural justice, we are inclined to remit the matter back to the file of the Ld.CIT(A) with a direction to afford an opportunity of being heard to the assessee. The assessee is also directed to adhere to the notices issued by the revenue authorities and cooperate during the proceedings.
In the result, appeal of the assessee is allowed for statistical purpose.
Order pronounced in the open court on 31st May, 2024.