2024 (6) TMI 1275 - AT - Income Tax

Dismissal of appeal by CIT(A) ex-parte - non prosecution of the appeal by the assessee with cogent material evidences in support of the grounds of appeal raised - Reopening of assessment - Unexplained cash credit u/s 68 - assessee has not submitted any details and supporting evidences as called for - HELD THAT - As observed from the records that the assessee was given several opportunities, but the assessee failed to respond to the notices for prosecution of his appeal with evidences and hence, the appeal was dismissed ex-parte by the Ld.CIT(A). When the assessee files appeal before the appeal authorities, the onus is on the assessee to adhere to the notices and appear before the authorities for prosecution of his case and controvert the findings of the revenue authorities with supporting material evidences. However, keeping in view the principles of natural justice, we are inclined to remit the matter back to the file of the Ld.CIT(A) and direct the Ld.CIT(A) to afford the assessee, another opportunity of being heard before the Ld.CIT(A). Appeal of the assessee is allowed for statistical purpose.

Summary

Issues:
1. Condonation of Delay
2. Assessment of unexplained cash credit u/s 68 of the Income Tax Act
3. Dismissal of appeal ex-parte by CIT(A) without sufficient opportunity

Condonation of Delay:
The appeal was filed with a delay of 58 days due to the appellant fracturing his ankle and being advised bed rest, causing him to forget to sign the appeal papers. The Tribunal, after reviewing the medical certificate and the circumstances, condoned the delay as there was a reasonable cause for the delay, emphasizing the interest of justice.

Assessment of unexplained cash credit u/s 68 of the Income Tax Act:
The case involved the assessee not filing the return of income for A.Y. 2015-16 and making cash deposits in his bank account, which the AO treated as unexplained cash credit u/s 68 of the Act. The CIT(A) upheld the AO's order, leading to the appeal before the Tribunal. The Tribunal directed the CIT(A) to afford the assessee another opportunity to be heard and submit relevant evidences to substantiate his case, remitting the matter back to the CIT(A).

Dismissal of appeal ex-parte by CIT(A) without sufficient opportunity:
The appeal was dismissed ex-parte by the CIT(A) due to the appellant's failure to prosecute the appeal with supporting evidences. The AR contended that the appellant was not given sufficient opportunity before the CIT(A) and requested another chance to present his case. The Tribunal, considering the principles of natural justice, directed the CIT(A) to provide the appellant with another opportunity to be heard, emphasizing the importance of adhering to notices and presenting material evidences.

In conclusion, the Tribunal allowed the appeal for statistical purposes, emphasizing the need for adherence to procedural requirements, providing opportunities for parties to be heard, and submitting relevant evidences to support their case.