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2021 (2) TMI 213 - AT - Income TaxDismissal of assessee appeal for non prosecution - non speaking order of CIT-A - Reopening of assessment u/s 147 - Addition u/s 69A - HELD THAT - A perusal of the order of the Ld. CIT(A) shows that two notices were sent through e-mail and the last notice was sent through speed post on 1st June 2017 fixing the date of hearing for 15th June, 2018. Since there was no compliance from the side of the assessee, Ld. CIT(A), following the decision of CIT vs. BN Bhattacharya 1979 (5) TMI 4 - SUPREME COURT and CIT vs. Mulltiplan India Pvt. Ltd. 1991 (5) TMI 120 - ITAT DELHI-D dismissed the appeal of the assessee for non prosecution. He , however, while deciding the appeal on merit has simply sustained the addition made by the AO in a cryptic order. We deem it appropriate to restore this issue to the file of the Ld. CIT(A) with a direction to grant one final opportunity to the assessee to substantiate his case and decide the appeal on the basis of facts and law by passing a speaking order. The assessee is also hereby directed to appear before the Ld. CIT(A) and explain the source of cash deposit in the bank account, failing which the Ld. CIT(A) is at liberty to pass appropriate order as per law . Appeal filed by the assessee is allowed for statistical purposes.
Issues:
Appeal against ex parte order sustaining addition under section 69A of the Income Tax Act 1961. Analysis: The appeal was filed by the assessee against the ex parte order passed by the Ld. CIT(A) sustaining the addition of ?12,76,000 made by the AO under section 69A of the Income Tax Act for the assessment year 2010-11. The case was reopened based on information that the assessee had made a cash deposit in his savings bank account. Despite multiple notices and opportunities, the assessee failed to comply with providing explanations regarding the source of the cash deposit. The AO completed the assessment by making the addition under section 69A to the returned income of the assessee. The Ld. CIT(A) passed an ex parte order sustaining the addition as the assessee did not comply despite three opportunities granted. The assessee, aggrieved by this order, appealed before the Tribunal. However, during the appeal proceedings, none appeared on behalf of the assessee despite notice. The Ld. CIT(A) had sent multiple notices, and in line with legal precedents, dismissed the appeal for non-prosecution. The order of the Ld. CIT(A) was found to be cryptic in sustaining the addition made by the AO. In the interest of justice, the Tribunal deemed it appropriate to restore the issue to the file of the Ld. CIT(A) with a direction to grant one final opportunity to the assessee to substantiate the case. The assessee was directed to appear before the Ld. CIT(A) and explain the source of the cash deposit failing which appropriate action could be taken. The Tribunal allowed the appeal of the assessee for statistical purposes, emphasizing the need for a speaking order based on facts and law. Ultimately, the appeal filed by the assessee was allowed for statistical purposes, and the order was pronounced in the open court on 07/01/2021.
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