2021 (5) TMI 72 - AT - Income Tax

Addition u/s 68 - Unexplained cash deposits - HELD THAT - CIT(A) and the Ld. A.O. had posted the case on several occasions. However, none appeared on behalf of the assessee before the Ld. AO as well as before the Ld. CIT(A). Therefore, the Ld. Revenue Authorities were left with no other option except to adjudicate the appeal based on the material available on record. In this situation, do not find much strength in the arguments advanced by the ld. AR. However, considering the issues involved in the appeal as well as the prayer of the Ld. AR, in the interest of justice, hereby remit the matter back to the file of Ld. A.O. in order to consider the appeal afresh on merits by providing one more opportunity to the assessee of being heard. Appeal filed by the assessee is allowed for statistical purposes

Summary

Issues: Delay in filing appeal, Ex-parte orders, Remand to Assessing Officer

Delay in filing appeal:
The appellant filed an appeal against the order of the Ld. CIT(A)-4, Hyderabad for the A.Y. 2011-12, with a delay of 170 days. The appellant cited illness and other reasons for the delay, seeking condonation. The Tribunal, after perusing the affidavit, accepted the reasons for the delay and condoned it in the interest of justice. Consequently, the appeal was considered on merits.

Ex-parte orders:
The Ld. AR contended that both the Ld. A.O. and the Ld. CIT(A) had passed ex-parte orders under sections 144 r.w.s 147 and 250 of the Act, respectively, without providing a proper opportunity to be heard. The appellant requested the matter to be remitted back to the Assessing Officer to allow another opportunity for the assessee to present their case. On the contrary, the Ld. DR argued that adequate opportunities were given, but the assessee failed to appear. The Tribunal noted that despite multiple postings, the assessee did not appear before the authorities. While acknowledging the Ld. AR's plea, the Tribunal remitted the matter back to the Assessing Officer for a fresh consideration on merits, emphasizing the need for the assessee's cooperation.

Remand to Assessing Officer:
After considering the arguments, the Tribunal found merit in the submissions of the Ld. DR regarding the lack of appearance by the assessee before the authorities. The Tribunal decided to remit the matter back to the Assessing Officer for a fresh adjudication on merits, providing the assessee with another opportunity to be heard. The Tribunal cautioned the assessee to cooperate promptly, failing which appropriate orders would be passed based on the available records. Ultimately, the appeal was allowed for statistical purposes.

In conclusion, the Tribunal addressed the delay in filing the appeal, the issue of ex-parte orders, and the decision to remand the matter back to the Assessing Officer for a fresh consideration, emphasizing the importance of the assessee's cooperation in the proceedings.