SANJAY AGARWAL,HYDERABAD vs. INCOME TAX OFFICER, WARD-4(4), HYDRABAD

This appeal filed by the assessee is directed against the order dated 26.09.2023 of the learned CIT (A)-NFAC Delhi, relating to A.Y.2017-18.

Although a number of grounds have been raised by the assessee, however, these all relate to the ex-parte order passed by the learned CIT (A) NFAC confirming the addition of Rs.2,25,86,518/- made by the Assessing Officer u/s 69A of the I.T. Act.

Facts of the case, in brief, are that the assessee is an individual and filed his return of income on 30.10.2017 declaring

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

The learned Counsel for the assessee at the outset submitted that at the relevant time the wife of the assessee was suffering from cancer and was undergoing chemotherapy. Further, the assessee was recovering from 2nd heart stroke coupled with the broken engagement of his daughter in the month of Dec. 2019. Therefore, the assessee was unable to attend to the statutory notices issued by the Assessing Officer as well as the learned CIT(A) NFAC. He submitted that in the interest of justice, the assessee should be given an opportunity to substantiate his case by filing the requisite documents. The learned Counsel for the assessee also drew the attention of the Bench to the various medical reports to the effect that his wife was suffering from cancer and that he was undergoing treatment at the AIG Hospital due to heart stroke.

The learned DR, on the other hand, submitted that the assessee did not respond to the statutory notices issued by the Assessing Officer as well as by the learned CIT (A) NFAC, therefore, the order of the learned CIT (A) NFAC should be upheld.

We have heard the rival arguments made by both the sides, perused the orders of the AO and the learned CIT (A) and the paper book filed on behalf of the assessee. We find the AO in the instant case in the absence of any details filed by the assessee to substantiate the source of deposits in various bank accounts maintained by him, made addition of Rs.2,25,86,518/- u/s 69A of the Act as unexplained money and taxed the same u/s 115BBE of the Act. We find the learned CIT (A) NFAC in the ex-parte order passed by him sustained the addition made by the Assessing Officer the reasons of which have already been reproduced in the preceding paragraph. It is the submission of the learned Counsel for the assessee that due to the suffering of his wife from cancer who was undergoing chemotherapy and since the assessee was undergoing treatment for 2nd heart stroke coupled with broken engagement of his daughter, the assessee was mentally disturbed and depressed for which he could not respond to the statutory notices issued by the Assessing Officer and the learned CIT (A) NFAC. It is also his submission that given an opportunity, the assessee is in a position to substantiate his case with documentary evidences to the satisfaction of either of the lower authorities. Considering the totality of the facts of the case and in the interest of justice and considering the fact that the Assessing Officer has also passed ex-parte order u/s 144 of the I.T. Act, we deem it proper to restore the issue to the file of the Assessing Officer with a direction to grant one final opportunity to the assessee to substantiate his case by filing the requisite details Page 5 of 6