Challenged ex-parte order for lack of fair hearing & legality concerns under section 147. Assessee granted chance to explain.

The appeal challenged the ex-parte order of the CIT(A) for lack of fair hearing and legality concerns under section 147. The AO's addition of unexplained cash deposits and credit entries was contested. The NFAC found the dismissal lacking proper reasoning and granted the assessee a chance to explain before the CIT(A)/NFAC, restoring all grounds to the AO for a fresh decision. The appeal was allowed for statistical purposes, stressing the importance of fair opportunities and timely compliance in future proceedings.

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Issues:
Appeal against order of CIT(A) - Ex-parte disposal without fair opportunity, Addition made without specifying provisions, Legality of proceedings under section 147, Mechanical recording of reasons, Addition of unexplained cash deposits and credit entries, Opportunity to provide additional evidence.

Analysis:
1. The appeal challenged the CIT(A)'s order for being ex-parte without granting a fair hearing, violating natural justice principles. The grounds included errors in upholding additions without specifying legal provisions and lacking reliable material for income escapement, questioning the legality and validity of proceedings under section 147. The appellant sought quashing of the order.

2. The case involved an individual assessee with unfiled income tax return for AY 2012-13, reopened under section 147 based on cash deposits and credit entries. The AO added unexplained cash deposits and credit entries totaling Rs. 17,34,530 due to non-compliance and lack of explanations from the assessee.

3. The appeal was transferred to NFAC, where it was dismissed ex-parte due to the assessee's failure to respond to multiple opportunities for submission. The appellant contended that non-compliance was unintentional due to uncooperative representation.

4. During the hearing, the AR argued that the assessee, a salaried individual with agricultural income, was unaware of the proceedings due to a temporary shift, and the CA failed to inform timely. The AR requested the opportunity to present evidence or have the case reconsidered by the CIT(A) or AO.

5. The Revenue's representative argued that the assessee neglected opportunities to represent the case, with no valid reasons for non-filing of evidence. The Revenue opposed admitting new evidence at the Tribunal level.

6. The Tribunal found the CIT(A)'s dismissal order lacking proper reasoning as per Section 250(6) of the Act, granting the assessee another chance to explain the case before the CIT(A)/NFAC. All grounds were restored to the AO for a fresh decision, allowing the assessee to submit relevant evidence promptly.

7. The appeal was allowed for statistical purposes only, emphasizing the need for fair opportunities and timely compliance in future proceedings. The decision was pronounced in an open virtual court hearing on 6th September 2022.

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