2024 (12) TMI 554 - AT - Income Tax

Dismissal of appeal by the CIT(A), NFAC - proceedings under section 148 that were initiated against the assessee could not be attended due to the fact of the assessee s absence from India and accordingly, an ex parte order was passed against the assessee - violation of principles of natural justice in passing impugned orders as alleged by Assessee - AR submitted that it would be seen that not only had he filed affidavit, title deed, copy of passport and bank statement, but he had also filed a written submission with regard to the notices issued. However, the ld. CIT(A), NFAC had not bothered to go through the documents that had been uploaded along with the replies and had simply stated that evidences had not been filed by the assessee HELD THAT - It is fairly clear that the assessee had uploaded the necessary evidences in support of his arguments, to the ld. CIT(A) in both the appeal proceedings on 15.06.2024. It is also fairly evident that the ld. CIT(A) has not considered these evidences, before finalizing his appeal order. This is clearly violative of principles of natural justice and therefore, we are of the view that the assessee deserves an opportunity to present his case, especially because consideration of his arguments and evidences go to the very root of the matter i.e. his status for the purposes of determination of taxability of investments purported to be made by him and amounts deposited by him in his bank account. Accordingly, we remand back both the appeals to the file of the ld. CIT(A) for a fresh decision on the matter, after considering the evidences already submitted by the assessee and any other that the assessee may wish to submit upon being issued further notices. We also direct the assessee to make full compliance before the ld. CIT(A), NFAC so as to enable him to determine the true facts of the case. As the appeals have been set aside to the file of the ld. CIT(A), they are deemed to be allowed for statistical purposes.

Summary

Issues:
1. Appeal against orders of the ld. CIT(A), NFAC under section 250 of the Income Tax Act for A.Y. 2013-14 and 2014-15.
2. Delay in filing appeals and subsequent transfer of cases to ITAT Allahabad Bench.
3. Unexplained investments and credits in bank accounts leading to assessment under section 147.
4. Dismissal of appeal by ld. CIT(A), NFAC based on non-submission of documents and lack of evidence.
5. Allegations of violation of principles of natural justice in passing impugned orders.

Analysis:

Issue 1:
The assessee filed appeals against orders of the ld. CIT(A), NFAC for A.Y. 2013-14 and 2014-15, challenging the assessment under section 250 of the Income Tax Act. The grounds of appeal raised various issues related to the validity of the orders and the tax treatment of the assessee's transactions.

Issue 2:
After the filing of appeals, it was discovered that two appeals were originally filed before the ITAT Delhi Bench but were transferred to the ITAT Allahabad Bench. The assessee requested to withdraw the earlier appeals, which were dismissed as withdrawn, and fresh appeals were filed before the ITAT Allahabad Bench.

Issue 3:
The Department found unexplained investments and credits in the assessee's bank accounts, leading to assessments under section 147 for A.Y. 2013-14 and 2014-15. The ld. CIT(A), NFAC upheld the additions made by the ld. AO, citing lack of documentary evidence supporting the assessee's claims.

Issue 4:
The assessee challenged the dismissal of the appeal by the ld. CIT(A), NFAC, alleging a violation of natural justice. The assessee argued that necessary documents were submitted, but not considered by the ld. CIT(A). The Tribunal agreed that the assessee's evidence was not adequately considered, remanding the appeals back to the ld. CIT(A) for a fresh decision.

Issue 5:
The Tribunal found that the ld. CIT(A) failed to consider the evidences submitted by the assessee, violating principles of natural justice. As a result, the appeals were remanded back to the ld. CIT(A) for a fresh decision after proper consideration of the evidence. The assessee was directed to make full compliance for a fair determination of the case.

In conclusion, the Tribunal dismissed the earlier appeals as withdrawn, while holding the subsequent appeals to be allowed for statistical purposes. The decision was made to ensure a fair consideration of the assessee's case and compliance with principles of natural justice.