BUSHETTY NAGARAJU,BANAGANAPALLI vs. INCOME TAX OFFICER, WARD-1, NANDYAL

At the outset, it is seen that there is a delay of 6 days in filing the appeal before the Tribunal. After hearing the learned DR, the delay in filing of the appeal before the Tribunal is condoned and the appeal is admitted for adjudication.

The brief facts of the case are that the assessee filed his return of income for the A.Y 2017-18 on 7/11/2017 declaring total income of Rs.4,93,460/-. The return was processed u/s 143(1) and the case was selected for scrutiny through CASS. Statutory notices u/s 143(2) and 142(1) of the I.T. Act, 1961 were issued and served on the assessee to which the appellant appeared before the Assessing Officer and furnished the requisite details. The Assessing Officer during the course of assessement proceedings, obtained bank statements from the bank in terms of section 133(6) of the I.T. Act, 1961 and the Assessing Officer found that the assessee deposited Rs.28,19,000/- during the demonetization period. The assessee has not filed any details to explain the source for the cash deposits into Andhra Bank amounting to Rs.28,19,000/- during the demonetization period. Thus, the Assessing Officer treated the said amount as unexplained money u/s 69A of the I.T. Act, 1961.

Aggrieved by the order of the learned CIT (A), the assessee is in appeal before the Tribunal.

I have gone through the orders of the authorities below. It is an admitted fact that in the case of non-appearance of the appellant, the appeal should be disposed off on merit. In the present case, the learned CIT (A) dismissed the appeal filed by the assessee on technical ground, however, does not adjudicated the issue on merit. Therefore, I am of the considered view that the assessee deserves one more opportunity of hearing before the Assessing Officer to explain its case. Thus, I set aside the order passed by the learned CIT (A) and restore the issue back to the file of the Assessing Officer for fresh consideration. The Assessing Officer is directed to reconsider the issue denovo after providing an opportunity of hearing to the assessee. Needless to say, the assessee shall appear before the Assessing Officer and file all the details without seeking any adjournment. The assessee is further directed to pay a nominal cost of Rs.2000/- at the Telangana State Aide Legal Authorities at the Hon'ble Telangana High Court and furnish proof of payment with the Registry.

In the result, appeal filed by the assessee is allowed for statistical purposes.