MR.LAKHAN,AGRA V. ITO 2(1)(1), AGRA

ITA 130/AGR/2025

AI Insights

The case involves Mr. Lakhan, the appellant, who appealed against the order of the Commissioner of Income-tax (Appeals), which confirmed the addition of Rs.48,45,825 to his income for the assessment year 2012-13. The addition was initially made by the Assessing Officer under sections 147/144 of the Income-tax Act, 1961, due to non-response from the assessee to notices regarding the unexplained cash deposit. The appellant argued that the CIT(Appeals) erred by dismissing his appeal ex parte without proper opportunity to defend his case, thus violating the principles of natural justice. The Departmental Representative supported the CIT(Appeals)'s decision. The Tribunal found merit in the appellant's argument regarding the lack of proper opportunity and remitted the matter back to the Assessing Officer for a detailed examination and a fresh assessment.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 396743 (ITAT-AGRA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-05-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2012-2013
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Matter Remanded
• Court: TRIBUNAL
• Department Lawyers: SHAILENDRA SRIVASTAVA
• Assessee Lawyers: P.K. SEHGAL
• Keywords: Set aside; Principle of natural justice

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL, AGRA BENCH, AGRA BEFORE : SHRI SUNIL KUMAR SINGH, JUDICIAL MEMBER AND SHRI MANISH AGARWAL, ACCOUNTANT MEMBER ITA No. 130/Agr/2025 Assessment Year: 2012-13 Mr. Lakhan, 431, Jajau, Fatehpur Sikari, Kiraoli, Agra- 283110. Vs. Income-tax Officer, Ward 2(1)(1), Agra. PAN : AIJPL0490J (Appellant) (Respondent) ORDER Per Sunil Kumar Singh, Judicial Member: This appeal has been preferred by assessee against the impugned order dated 21.08.2023 (communication of order on 06.02.2025) passed in Appeal No. CIT (Appeals) 2, AGRA/10340/2019-20 by the Ld. Commissioner of Income-tax (Appeals), NFAC, Delhi u/s. 250 of the Income-tax Act, 1961 (hereinafter referred to as “the Act”), wherein the learned CIT(Appeals) has confirmed the addition of Rs.48,45,825/- made vide assessment order dated 14.11.2019 passed u/s. 147/144 of the Act and dismissed assessee’s first appeal. Assessee by Sh. P.K. Sehgal, Advocate Department by Sh. Shailendra Srivastava, Sr. DR Date of hearing 21.05.2025 Date of pronouncement 29.05.2025 ITA No.130/Agr/2025 2 | P a g e 2. This appeal has been filed on the ground, in addition to other grounds, that the ld. CIT(Appeals) has erred in passing the impugned order without affording proper and adequate opportunity to the appellant/assessee to defend his case. 3. Perused the records and heard the ld. Representative for the assessee and the learned Departmental Representative for the Revenue. 4. Learned AR of the assessee submitted that the ld. CIT(Appeals) has not followed the principles of natural justice while dismissing the appeal of the assessee ex parte. 5. Learned DR has supported the impugned order. 6. Perusal of the impugned order shows that the assessee did not respond to the notices dated 28.07.2021, 04.11.2022 and 11.07.2023 issued by the first appellate authority, resulting in passing ex parte impugned order. The learned CIT(Appeals), however, was expected to state the points for determination, decision thereon and the reasons for the decision as provided u/s. 250(6) of the Act. This apart, we also notice that the assessee also failed to make submissions before the Assessing Officer resulting in passing assessment u/s. 144/147 of the Act. For want of assessee’s explanation, nature and source of cash deposit of Rs.48,45,825/- could not be verified. In the circumstances and in the interest of justice and fair play, we deem it just and appropriate to remit the ITA No.130/Agr/2025 3 | P a g e matter back to the file of learned Assessing Officer for framing the assessment order afresh after seeking explanation of the assessee as to the nature and source of the cash deposit in the bank account.. We order accordingly. We further direct the assessee to be diligent and cooperative in attending the assessment proceedings and making submissions before the Assessing Officer for the expeditious and effective disposal. Assessee shall refrain from seeking any adjournment but for compelling and unavoidable reasons. Needless to say that learned Assessing Officer shall ensure the observance of the principles of natural justice. The appeal is liable to be allowed accordingly. 7. In the result, the appeal is allowed for statistical purposes. The impugned order dated 21.08.2023 is set aside. Order pronounced in the open court on 29.05.2025. Sd/- Sd/- (MANISH AGARWAL) (SUNIL KUMAR SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 29.05.2025 *aks/- Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(A) 5. DR Asst. Registrar, ITAT, Agra "