2023 (3) TMI 1232 - AT - Income Tax

CIT-A deciding the appeal ex-parte to the assessee - Addition u/s 69A - HELD THAT - CIT-A without referring to the paper book which was available before him has decided the issue against the assessee merely after observing the fact that the assessee did not cooperate during the proceedings. Admittedly, the learned CIT-A is empowered to decide the issue ex parte in the event of non-cooperation from the assessee but he cannot decide the issue without considering the materials available on record and that too in scientific manner. Accordingly, assessee deserves one more opportunity to present its contention before the learned CIT-A. Accordingly, set aside the issue to the file of the learned CIT-A for fresh adjudication - Ground of appeal of the assessee is partly allowed for the statistical purposes.

Summary

Issues involved:
The appeal filed by the assessee against the order of the Learned Commissioner of Income Tax (Appeals) pertains to various grounds including non-consideration of return, addition made under section 69A, addition without rejecting books of accounts, non-consideration of replies, ex-parte order, rejection of return, penalty proceedings, and interest charged.

Grounds of Appeal:
1. The assessee challenged the decision of the CIT-A to proceed ex-parte after ignoring the adjournment petition.
- The appeal was filed with a delay, but the AR explained the extension granted by the Supreme Court, which was accepted.
- The Supreme Court directions on limitation were applied, condoning the delay and allowing the appeal to be heard on merit.

2. The assessee, a private limited company, was assessed under section 144 of the Act, with no submission during appellate proceedings.
- The CIT-A made observations on the lack of compliance by the appellant during the hearing process.
- Despite non-cooperation, the CIT-A is required to consider the materials on record before deciding ex-parte.

3. The assessee contended that cash deposits were from the opening cash balance, supported by financial statements and cash flow statements.
- The CIT-A decided against the assessee without considering the available paper book and materials on record.
- The issue was set aside for fresh adjudication by the CIT-A to allow the assessee another opportunity to present its case.

4. Other grounds of appeal were connected to the main issue and were set aside for fresh adjudication by the CIT-A.
- All other grounds of appeal were allowed for deciding them afresh after providing an opportunity to the assessee.

Conclusion:
The appeal filed by the assessee was allowed for statistical purposes, with the issue on merit set aside for fresh adjudication by the CIT-A. All other grounds of appeal were also set aside for reevaluation after giving the assessee an opportunity to be heard.