Master General Store Vs ITO (ITAT Amritsar)
Order sent to wrong counsel, appeal dismissed ex-parte: ITAT condones 458-day delay & restores demonetisation cash-deposit case
Amritsar ITAT condoned an inordinate delay of 458 days & restored the appeal to the file of CIT(A) after finding clear breach of natural justice. Tribunal noted that CIT(A)’s order dated 24-11-2023 was never served on the assessee & was instead emailed to the earlier counsel, who failed to inform the assessee about disposal of the appeal. As a result, the appeal before CIT(A) was dismissed ex-parte without adjudication on merits.
On facts, assessment was completed ex-parte u/s 147 r.w.s. 144 making additions of ₹52 lakh u/s 69A for demonetisation cash deposits & further estimated profit of ₹39.96 lakh (8%) on bank deposits, aggregating total income of ₹91.96 lakh. Before ITAT, assessee produced a bank certificate showing that the bank account treated as belonging to a partnership firm was actually a cash-credit account of the individual proprietor, with all transactions duly recorded in regular audited books & returns. Tribunal held that these factual aspects required proper verification & could not be brushed aside due to non-service of notices. Accordingly, ITAT set aside the ex-parte order & remanded the matter to CIT(A) for fresh adjudication on merits after granting reasonable opportunity, keeping all issues open. Appeal was allowed for statistical purposes
