Nazir Ahmad Bhat Vs ITO (ITAT Amritsar)
Enhancement u/s 251 Without Effective Hearing Invalid: ITAT Restores Appeals to CIT(A)
The Amritsar Bench of the ITAT, in Nazir Ahmad Bhat vs ITO, Anantnag (ITA Nos. 273 & 274/Asr/2025, AYs 2011-12 & 2012-13), condoned an inordinate delay of 369 days in filing the appeals and set aside the ex-parte appellate orders involving substantial enhancement, restoring the matters to the CIT(A) for fresh adjudication on merits.
The Assessee, a 67-year-old retired pensioner, suffered from serious ailments and underwent multiple surgeries, remaining bedridden for long periods. Accepting the affidavit and even the oral statement of the counsel regarding the critical medical condition, the Tribunal condoned the delay in the interest of justice, despite absence of medical documents.
On merits, the AO had completed ex-parte assessments u/s 144/147 based on AIR/CIB information of large cash deposits and bank credits (₹19.27 lakh cash + ₹70 lakh credits for AY 2011-12; ₹63.04 lakh cash for AY 2012-13). The CIT(A), again ex-parte, issued show-cause notices for enhancement u/s 251(2) and enhanced income by ₹70.07 lakh (AY 2011-12) and ₹50.43 lakh (AY 2012-13).
Before the Tribunal, the Assessee explained that the deposits arose from sale of agricultural land and business of tonga carts, but no evidence could be furnished earlier due to his medical condition. With no objection from the Revenue, the ITAT held that the Assessee deserved a fair opportunity. Accordingly, both matters were remanded to the CIT(A) with directions to grant proper hearing, issue notices also to the counsel’s email, and decide afresh after considering documentary evidence. All issues were left open, and both appeals were allowed for statistical purposes.
FULL TEXT OF THE ORDER OF ITAT AMRITSAR
These two appeals are filed by the assessee against orders of the Ld. CIT (A) NFAC, passed u/s 250, both dated 20th January, 2024, which has emanated from the orders of the AO, Ward – 3(4) Anantanag, both passed ex-parte u/s 144/147 dated 30/11/2018 and 30/12/2019, respectively.
