2023 (3) TMI 811 - AT - Income Tax

Ex-parte order of the CIT (A) - AO determined the total income of the assessee more as against the returned income by making various additions - as submitted by assessee although there was non-compliance before the learned CIT(A)-NFAC to the statutory notices issued by his office, however, the same was due to unavoidable circumstances and given an opportunity, the assessee is in a position to substantiate his case - HELD THAT - We restore the issue to the file of the learned CIT(A)-NFAC with a direction to grant one last opportunity to the assessee to substantiate his case and decide the issue as per fact and law. Further, considering the continuous non-compliance of the assessee to the statutory notices issued by the office of the learned CIT(A)-NFAC, we levy a cost of Rs.10,000/- on the assessee for his callous and non-cooperation attitude and the same shall be paid to the PM s Relief Fund. Appeal filed by the assessee is allowed for statistical purposes.

Summary

Issues:
1. Ex-parte order confirmation by CIT (A) relating to A.Y.2016-17.
2. Assessing Officer's additions and relief granted by CIT (A).
3. Non-appearance of assessee before CIT (A.
4. Appeal before the Tribunal for fresh adjudication.

Analysis:
1. The appeal was against the ex-parte order of the CIT (A) confirming additions made by the Assessing Officer for A.Y.2016-17. The CIT (A) granted part relief but sustained significant additions, leading to the appeal before the Tribunal.

2. The Assessing Officer had made various additions to the total income of the assessee, including unexplained cash deposits, investments, disallowance of deductions, and income from other sources. The CIT (A) sustained most additions but deleted one, resulting in the assessee's appeal.

3. The assessee did not appear before the CIT (A) despite opportunities granted, leading to the ex-parte order. The assessee sought restoration of the case to provide necessary evidence, citing unavoidable circumstances for non-appearance.

4. The Tribunal considered both sides' arguments, reviewed the AO and CIT (A) orders, and the paper book filed by the assessee. Acknowledging the non-compliance but attributing it to unavoidable circumstances, the Tribunal decided to restore the issue to the CIT (A) for fresh adjudication. A cost of Rs.10,000 was levied on the assessee for non-cooperation, to be paid to the PM's Relief Fund.

In conclusion, the Tribunal allowed the appeal for statistical purposes, directing the assessee to appear before the CIT (A) without seeking adjournment. Failure to comply would result in appropriate action by the CIT (A).