The assessee filed an appeal against the appellate order dated 12 September 2025 passed by the Additional/Joint Commissioner of Income Tax (Appeals) for Assessment Year 2015-16. The assessment in the present case was completed by the Assessing Officer under section 147 read with section 144 of the Income-tax Act, 1961, by order dated 15 March 2023, whereby the total income of the assessee was assessed at ₹39,92,000. The entire addition of ₹39,92,000 was made by way of an ex-parte assessment.

Aggrieved, the assessee preferred an appeal before the Commissioner (Appeals). However, the said appeal was dismissed for want of prosecution, without adjudication on merits. The assessee, therefore, approached the Tribunal.

Before the Tribunal, the learned counsel for the assessee submitted that the assessment order was passed ex-parte without affording reasonable opportunity of being heard. It was further contended that the Commissioner (Appeals) also failed to provide adequate opportunity and dismissed the appeal mechanically. Specific emphasis was placed on the fact that the appellate authority did not consider the assessee’s explanation supported by sale deeds of agricultural land and corresponding sale proceeds, which were cited as the source of cash deposits in the bank.

It was pleaded that, in the interest of justice, the entire issue relating to the addition should be restored to the file of the Assessing Officer for fresh adjudication after granting proper opportunity. The Departmental Representative raised no objection and left the matter to the discretion of the Tribunal.

The Tribunal observed that both the assessment order and the appellate order were passed without granting reasonable opportunity to the assessee. It was further noted that the Commissioner (Appeals) had not duly considered the explanation and evidences placed on record. Holding that the principles of natural justice were violated, the Tribunal set aside the impugned appellate order.

Accordingly, the matter was restored to the file of the Assessing Officer with a direction to pass a de novo assessment order in accordance with law, after providing reasonable opportunity of being heard to the assessee.

The appeal was thus allowed for statistical purposes.

Source Link- https://itat.gov.in/public/files/upload/1767853387-xsTJWc-1-TO.pdf

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