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Income Tax Appellate Tribunal, AHMEDABAD “SMC” BENCH, AHMEDABAD
Before: Ms. SUCHITRA KAMBLE
O R D E R This appeal is filed by the assessee against order dated 21.09.2023 passed by the CIT(A), National Faceless Appeal Centre (NFAC), Delhi for the Assessment Year 2017-18.
The assessee has raised the following grounds of appeal :-
“1. On the facts and circumstances of the case as well as law on the subject, the learned Commissioner of Income Tax (Appeals), NFAC has erred in passing the order without providing reasonable opportunity of hearing to assessee.
On the facts and circumstances of the case as well as law on the subject, the leamed Commissioner of Income Tax (Appeals), NFAC has erred in confirming the action of Assessing Officer in passing ex-parte order u/s 144 of the I.T. Act 1961.
On the facts and circumstances of the case as well as law on the subject, the learned Commissioner of Income Tax (Appeals), NFAC has erred in confirming the action of Assessing Officer in making addition of Rs.28,29,451/- on account of unexplained money u/s.69A of the I.T Act, 1961.
On the facts and circumstances of the case as well as law on the subject, the learned Commissioner of Income Tax (Appeals), NFAC has erred in confirming the action of Assessing Officer in invoking provisions of Section 115BBE of the Act and in thereby taxiing entire unexplained money at 60% and levying surcharge at 25% which is not applicable on above addition.
On the facts and circumstances of the case as well as law on the subject the learned Commissioner of Income Tax (Appeals) NFAC has erred in confirming the action of Assessing Officer in not considering the provision of Section 164 of the I.T. Act, 1961”
The assessee is engaged in Public Charitable Activity and is a Trust for maintaining Gaushala. As per the information, it was observed by the Revenue that the assessee deposited cash of Rs.15,32,000/-in its bank account during the demonetisation period i.e. from 09.11.2016 to 31.12.2016. The commission under Section 131(1A) of the Income Tax Act, 1961 was issued on 25.03.2017 and the summons were issued which was returned back as per the report dated 24.03.2017. The Assessing Officer observed that the assessee was required to file reply but the same was not filed as well as the mandatory return of income was also not filed. Notice under Section 142(1) of the Act dated 16.12.2018 was issued to the assessee and subsequent notices were also issued but the assessee has not made any submission before the Assessing Officer. Therefore, the Assessing Officer proceeded on the abasis of Section 144A of the Act. The Assessing Officer made addition of Rs.28,29,450/- under Section 69A of the Act in respect of unexplained money by passing the Assessment Order dated 19.11.2019.
Being aggrieved by the Assessment Order, the assessee filed appeal before the CIT(A). The CIT(A) dismissed the appeal of the assessee.
The Ld. AR submitted that there is a delay of 135 days in filing the present appeal due to the reason that the trustee of the assessee was suffering from Cancer and taking medical treatment and due to the extended period, could not follow up the matter. The reasons appear to be genuine and, therefore, the delay in filing the appeal is condoned.
5.1 The Ld. AR submitted that the CIT(A) has passed ex-parte order and due to the medical conditions of the concerned Trustee of the assessee, the case of the assessee was not represented either before the Assessing Officer or before the CIT(A). Therefore, the matter may be remanded back to the file of the CIT(A) for proper adjudicate the issues.
The Ld. DR submitted that the assessee has not complied and, therefore, the Assessing Officer has made addition in consonance with the Income Tax Act, 1961. The Ld. DR relied upon the Assessment Order and the order of the CIT(A).
Heard both the parties and perused all the relevant material available on record. It is pertinent to note that since the Trustee who is the concerned person dealing with the finance of the assessee Trust was under constant medical treatment and hospitalisation and hence could not follow the proceedings either before the Assessing Officer or before the CIT(A). Therefore, in the interest of justice, it will be appropriate to remand back this matter to the file of the CIT(A) for proper adjudication of the issue contested therein after taking cognisance of the evidences/details filed by the assessee before the CIT(A) and decide the issues on merit as per Income Tax Act, 1961. Needless to say, the assessee be given opportunity of hearing by following the principles of natural justice.
In the result, appeal of the assessee is partly allowed for statistical purpose.
Order pronounced in the open Court on this 6th September, 2024.
Sd/- (SUCHITRA KAMBLE) Judicial Member Ahmedabad, the 6th day of September, 2024 PBN/*