Joykutty Selistine Puthuvayal House Vs ITO (ITAT Ahmedabad)
ITAT Ahmedabad held that dismissal of appeal due to non-prosecution without adjudicating the issue on merits deprives the assessee of fair opportunity of being heard hence violating the principles of natural justice. Thus, matter remanded back to CIT(A) for fresh adjudication.
Facts- The assessee is an individual engaged in the business of resale of plastic mats, operating between Kerala and Ahmedabad, who did not file his return of income for the AY 2014-15. The AO reopened the assessment for AY 201415 u/s. 147 of the Act , based on information received through the Non-filers Monitoring System (NMS) indicating cash deposits of Rs.22,71,200/- in the assessee’s ICICI Bank account. Despite notices u/s. 148 of the Act and subsequent notices u/s. 142(1) of the Act, the assessee did not respond, resulting in the assessment being completed ex-parte u/s. 143(3) r.w.s 147 of the Act making addition of Rs.12,19,200/-as unexplained money u/s. 69A of the Act, accepting part of the assessee’s explanation for the cash deposits but rejecting others due to lack of documentary evidence.
Addl. CIT(A) dismissed the appeal for non-prosecution and upheld the order of the AO without addressing the issues on merits. Being aggrieved, the present appeal is filed.
