Brij Mohan Joshi Vs ITO (ITAT Indore)
CIT(A) Dismissal Faulted –Short Notice Period Violated Natural Justice – Case Sent Back for De Novo Consideration
Assessee filed return of income at ₹2,58,865/-. AO completed assessment u/s 143(3) computing total income at ₹20,23,400/-. Additions included ₹3,91,000/- u/s 68 r.w.s. 115BBE being cash deposited in SBN (demonetised currency) & ₹13,73,533/- treating 8% of cash deposits of ₹2.09 crore (other than SBN) as business receipts. AO also invoked audit u/s 44AB & levied interest u/s 234B.
CIT(A), vide order dated 28.02.2025, dismissed the appeal ex-parte, holding that Assessee failed to discharge the onus & showed no interest in prosecuting the matter.
Before Tribunal, Assessee contended that the order violated natural justice since notices were issued in quick succession with very short time to respond, particularly between 17.02.2025 & 25.02.2025 (8 days gap). Assessee argued that no meaningful opportunity of being heard was granted. Dept conceded that matter could be remanded for disposal on merits.
ITAT observed from records (para 4.1 of CIT(A)’s order) that the time granted was indeed too short & effective hearing was denied. Tribunal held that the impugned order was not sustainable. Accordingly, it set aside the order & remanded the matter to CIT(A) for de novo adjudication, directing that proper & meaningful opportunity be given to the Assessee, & a reasoned order be passed on merits. The appeal was thus allowed for statistical purposes.
