Ex parte appellate order and assessment remitted for fresh hearing, with scrutiny of cash deposits and demonetisation instructions.

An ex parte appellate order and the assessment were set aside where the assessee had not properly participated in assessment proceedings and had not substantiated that the disputed cash deposits were part of the parent trust's consolidated accounts. Because the appellate authority decided the matter without granting a hearing, the dispute was remitted to the Assessing Officer for de novo examination. The Assessing Officer was directed to give the assessee a reasonable opportunity, scrutinise the relevant accounts, and proceed in accordance with law, including the applicable CBDT instructions for the demonetisation period.

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Issues: Whether the ex parte appellate order and the assessment required to be set aside and the matter restored to the Assessing Officer for fresh consideration.

Analysis: The assessee had not effectively responded during the assessment proceedings and had also not substantiated before the appellate authority that the disputed cash deposits formed part of the consolidated accounts of the parent trust. At the same time, the appellate authority had disposed of the appeal without affording an opportunity of hearing. In these circumstances, and in the interest of justice, the matter was restored to the Assessing Officer for de novo examination. The Assessing Officer was directed to consider the matter afresh, afford reasonable opportunity to the assessee, and proceed in accordance with law, including scrutiny of the relevant accounts and applicable CBDT instructions for the demonetisation period.

Conclusion: The matter was remitted to the Assessing Officer for fresh adjudication after granting opportunity of hearing to the assessee.

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