KOHINOOR CITI PROJECTS LLP,HYDERABAD vs. DCIT., CIRCLE- 6(1), HYDERABAD

This appeal is filed by M/s. Kohinoor Citi Projects LLP (“the assessee”), feeling aggrieved by the order passed by the learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi (“Ld. CIT(A)”), dated 22.02.2024 for the AY 2017-18. 2. The grounds raised by the assessee reads as under :

The Ld. CIT(A) erred in confirming the addition of Rs.2,85,35,500/- made by the Assessing Officer by applying provisions u/s. 69A of IT Act, 1961, without giving the final opportunity of being heard.

Brief facts of the case are that the assessment proceedings u/s.147 of the Income Tax Act, 1961 (‘the Act’) were initiated in the case of the assessee for the A.Y. 2017-18 on the basis of information that the assessee had made certain transactions of cash deposit of Rs.2,00,000/- and cash withdrawal of Rs.2,83,35,500/- in/from the bank account. The assessee had not filed any return of income for the A.Y. 2017-18. Hence a notice u/s.148 of the Act was issued to the assessee on 29.03.2021 by the Learned Assessing Officer (“Ld.AO”), required the assessee to file the return of income. However, the assessee neither filed the return of income nor furnished any information / reply in response to the notice issued. Consequently, the assessment was completed by the Assessment Unit, Income Tax Department (“Ld.AO”) u/s 147 r.w.s. 144 r.w.s 144B of the Act making an addition of Rs.2,85,35,500/- on 23.03.2022.

Feeling aggrieved by the order passed by the Ld. AO, assessee filed appeal before the Ld. CIT(A). Before the Ld. CIT(A) also the assessee did not responded to the notices issued to him. Therefore, the Ld.CIT(A) confirming the order of Ld. AO dismissed the appeal of the assessee.

Feeling aggrieved with the order of Ld. CIT(A), the assessee is now in appeal before us. However during proceedings no body appeared before us on behalf of the assessee.

In his submission, Ld. DR placed heavy reliance on the orders of the authorities below, and submitted that sufficient opportunity has already been given by the authorities, but the assessee failed to avail the same. Hence he submitted that no further opportunity to be given the assessee and requested to uphold the order of authorities below.

We have heard the submissions made by Ld. DR and also gone through the record in the light of the submissions made. It could be seen from the orders of the revenue authorities that the assessee failed to produce the details with regards to the cash deposit and cash withdrawal in/from bank, which resulted in passing the orders without consideration thereof. It is a fact that the assessee does not stand to gain by not producing such documents. Hence for the sake of justce and to decide the matter on merits, we think it proper to give a last opportunity to the assessee to produce all such documentary evidence in support of his contentions and get the matter disposed of on merits before the revenue authority. The highest that would happen by allowing an opportunity to the assessee is that a cause would be decided on merits. With this view of the matter, we are of the view that fresh opportunity should be given to the assessee and, accordingly, we set aside the impugned order and restore the issue to the file of the Ld. AO for passing a fresh order on merits after affording the opportunity of hearing to the assessee. Grounds of appeal are answered accordingly.

In the result, the appeal of the assessee is allowed for statistical purpose. Order pronounced in the Open Court on 20th June, 2024.