Pramila Gokuldas Daga Girls College Vs ITO (ITAT Raipur)
ITAT Raipur held that ex-parte order passed by CIT(A) is liable to be set aside since there were justifiable reasons for the assessee trust of having remained unaware about the on-going appellate proceedings before the CIT(A). Accordingly, matter restored back for fresh consideration.
Facts- During the course of assessment proceedings, the A.O observed that the assessee trust had during the subject year made cash deposits of Rs.77,27,120/- in its bank account. Also, it was observed by him that the assessee trust had received interest income of Rs.33,347/-. As there was no explanation forthcoming from the assessee trust regarding the source of the aforesaid cash deposits and interest income, therefore, the A.O vide his order passed u/s.147 r.w.s. 144 of the Act, dated 09.10.2018, after making the aforesaid additions, assessed the income of the assessee trust at Rs.77,60,467/-.
CIT(A) dismissed the appeal. Being aggrieved, the present appeal is filed.
Conclusion- Held that there were justifiable reasons for the assessee trust of having remained unaware about the on-going appellate proceedings before the CIT(Appeals) due to which it had failed to participate in the same.
Considering the totality of the facts involved in the present case which had resulted to passing of an ex-parte order by the CIT(Appeals), we are of the view that as the assessee trust-appellant for no fault on its part had remained divested of a sufficient opportunity to participate in the proceedings before the first appellate authority, therefore, the matter in all fairness requires to be restored to his file for fresh adjudication. Needless to say, the CIT(Appeals) shall in the course of the set-aside proceedings afford a reasonable opportunity of being heard to the assessee trust which shall remain at a liberty to substantiate its contentions on the basis of fresh documentary evidence, if any.
