THE ITO -1(4), INDORE vs. SMT RAKHI GAUTAM, INDORE
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PER VIJAY PAL RAO, J.M.:
This appeal by the assessee is directed against the order
dated 15/12/2022 of CIT(Appeals) NFAC Delhi for the
assessment year 2012–13.The assessee has raised grounds of
appeal as under: (1) That on the facts and circumstances of the case and in law, the Ld. CIT (Appeals) erred in deciding the appeal ex- parte without giving proper opportunity of being heard to the appellant. (2) That on the facts and circumstances of the case and in law, the Ld. CIT (Appeals) erred in upholding the validity of reassessment proceeding initiated under section 147 of the
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Income tax Act, 1961 even when reopening was done in absence of any tangible material and live link of concealment of income that could lead to a formation of belief that income chargeable to tax has escaped from assessment . (3) That on the facts and circumstances of the case and in law, the Ld. CIT (Appeals) erred in upholding the validity of reassessment proceeding initiated under section 147 of the Income tax Act, 1961 even when reopening was done in merely for verification of source of cash deposit/ credit entries in the bank account by completely brushing aside the fact that the source of such deposits need not have necessarily constituted income of the appellant chargeable to tax that had escaped from assessment thereby warranting initiation of reassessment proceedings. (4) That on the facts and circumstances of the case and in law, the Ld. CIT (Appeals) erred in confirming the addition of Rs.78,64,400/- mad by the AO on account of cash deposit/ credit entries as appearing in the bank account of the appellant by treating as income earned from undisclosed sources without properly appreciating the facts of the case and submissions made before him and merely on the basis of fallacious assumption and presumption which was neither legal nor proper. (5) The appellant reserves the right to add, alter and modify the grounds of appeal as taken by her.
At the time of hearing ld. counsel for assessee has
submitted that the CIT (Appeals) has dismissed the appeals of the
assessee while passing the ex-parte order. He has pointed out
that the CIT(Appeals) has not afforded an effective opportunity of
hearing to the assessee before passing the impugned order. He
has submitted that the assessee has not received the alleged
notices issued by the CIT(Appeals) as none of the notices were
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sent in physical form but the same were sent at the registered
email ID which could not be noticed by the assessee . Further,
the issue involved in these appeals is arising from the
assessment order is regarding addition made on account of
deposits in the bank account source of the same needs to be
explained.Thus he has pleaded that the matter may be set aside
to the record of the CIT(A) for fresh adjudication after giving an
opportunity of hearing to the assessee.
On the other hand, Ld. DR has fairly submitted that since,
the impugned order has been passed by CIT(Appeals) ex-parte
therefore, he has no objection if the matter is set aside to the
record of the Commissioner of Income Tax (appeals) for fresh
adjudication.
We have considered the rival submissions as well as
relevant material on record. At the outset we note that the CIT(A)
has passed the impugned order ex-parte when nobody has made
appearance nor any reply was filed to the notices issued by the
CIT(Appeals). We find that the the CIT (Appeals) has dismissed
these appeals of the assessee due to no reply/ submission on
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behalf of the assessee. Since the assessee was not aware about
the notices issued by the CIT (A) due to the reason that the
notices were issued to the registered email ID and not in physical
form. Accordingly, in the facts and circumstances of the case and
in the interest of justice, we are of the considered view that the
assessee be given one more opportunity to present her case
before the CIT(Appeals). Accordingly in the facts and
circumstances and in the interest of justice we set aside the
impugned order of CIT(A) and the matter is remanded to the
record of the CIT(A) for fresh adjudication after giving appropriate
opportunity of hearing to the assessee.
In the result appeal filed by the assessee is allowed for
statistical purposes.
Order is pronounced in open court on 22/05/2023
Sd/- Sd/- (B.M. BIYANI) (VIJAY PAL RAO) Accountant Member Judicial Member
Indore, 22 .05.2023
Patel/Sr. PS Copies to: (1) The appellant (2) The respondent
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(3) CIT (4) CIT(A) (5) Departmental Representative (6) Guard File By order UE COPY Sr. Private Secretary Income Tax Appellate Tribunal Indore Bench, Indore
