2025 (6) TMI 1040

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....or the assessment year 2016-17 arising from the order dated 31.03.2022 passed by the Assessing Officer under section 147 r.w.s. 144 read with section 144B of the Act. Facts of the Case 2. The assessee is an individual engaged in the business of labour contracting, as per the statement of facts filed before CIT(A). For the A.Y. 2016-17, the assessee had filed return of income under section 139 on 20.05.2017 declaring total income of Rs. 5,17,644/-. The case was reopened under section 147 of the Act based on information that cash deposits aggregating to Rs. 20,50,000/- were made in the assessee's savings bank account with Syndicate Bank during the financial year 2012-13. A notice under section 148 of the Act was issued on 31.03.2021, and s....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....er record of the assessment order the reassessment proceedings were initiated without properly applying mind as regards year of cash deposited and also without following the mandatory requirements of section 147 to 151 of the Act and as there was no "reason to believe" as per settled legal position hence the same ought to be quashed. It be quashed now. 3. Without prejudice to the above grounds, the Id CIT(Appeals)/ NFAC erred in law and on facts in confirming the order passed by Id AO making huge addition u/s 69A when the appellant was not required to maintain books of account as per original return and section 69A of the Act was wrongly invoked. It be so held now and addition be deleted. 4. Without prejudice to the above ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....cord. It is an admitted fact that the reassessment was completed exparte due to non-compliance with statutory notices. Further, the CIT(A) also dismissed the appeal ex-parte, solely on the ground of lack of response from the assessee. 8. It is now well-settled by a catena of decisions that dismissal of appeal ex-parte without examining the merits can result in failure of justice, particularly where the assessee expresses readiness to substantiate his case. In the present case, the assessee has explained the reasons for non-compliance and has now expressed readiness to furnish full details with supporting documents to substantiate both the jurisdictional and substantive grounds. In such circumstances, we are of the considered view that th....