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TaxTMI 
TaxTMI 
TaxTMI 
2025 (12) TMI 164
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.... Rs. 3,75,000/- under section 69A r.w.s. 115BBE of the Income Tax Act, 1961 ('Act') by the ld. CIT(A) by ex - parte order. 3. The relevant facts giving rise to this appeal are that the assessee filed its Income Tax Return ('ITR') declaring income of Rs. 2,61,840/-. During the course of assessment proceedings, the Ld. Assessing Officer ('AO') noticed that the assessee had deposited cash of Rs. 3,75,000/- in his bank account; therefore, the assessee was show-caused to explain the source thereof. However, no compliance was made by the assessee. Therefore, the Ld. AO observing as under taxed the same of Rs. 3,75,000/- under section 69A r.w.s. 115BBE of the Act as under: - "9. From the record, it is seen that in response to the notic....
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....rce of income, and the assessee offers no explanation about the nature and source of acquisition of the money, bullion jewellery or other valuable article, or the explanation offered by him is not, in the opinion of the Assessing Officer, satisfactory, the money and the value of the bullion, jewellery other valuable article may be deemed to be the income of the assessee for such financial year'. 10.1 In the absence of any reply from the assessee regarding source and nature of cash deposit in the ICICI bank account, it is held that the assessee has nothing to say in the matter. Also, the assessee has failed to furnish the source of cash deposit in his bank account. Therefore, an amount of Rs. 3,75,000/- is added u/s 69A of IT Act,19....
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....ngly, notice u/s 143[2] of the Act was issued on 28.06.2022 and assessment was completed u/s 143(3) on 09.02.2023 at an assessed income of Rs. 6,36,840/-. The present appeal emanates against this assessment order. 6.1 During the assessment proceedings, it was noted by the AO that appellant had deposited cash at Rs. 3,75,000/- in his ICICI Bank account during the F.Y. under reference. No source of this cash deposit was furnished before AO. Hence the cash deposited was treated as unexplained u/s 69A of the Act. 6.2 During the appellate proceedings, inspite of numerous opportunities, no justifications/evidences have been filed by the appellant to controvert the findings and additions made by the AO. It is seen that the AO has....
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.... the Ld. AO has also completed the assessment ex parte. However, the assessment was completed under section 143(3) of the Act. Moreover, the Ld. CIT(A) has not decided each ground of appeal after discussing the issue in detail and his reasons for agreeing with the assessment order. As per provisions of section 250(6) of the Act, the Ld. CIT(A) is obliged to dispose of the appeal in writing after stating the points for determination and to then pass an order on each of the points which has arisen for his consideration. The Ld. CIT(A) is further obliged to state the reason for his/her decision on each such point of determination. The Ld. CIT(A) is duty-bound to dispose of the appeal through a speaking order on merit on all the points for dete....
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....ng with reasons for the decision. Thus, it is incumbent upon the CIT(A) to deal with the grounds on merits even in ex parte order. In view of Section 250(6) of the Act, the CIT(A) has no power to dismiss an appeal on account of non-prosecution. This view is also taken by the Hon'ble Bombay High Court in case of CIT vs. Premkumar Arjundas Luthra HUF, (2017) 291 CTR 614 (Bom.). A bare glance of the order of the CIT(A) shows that CIT(A) has not addressed itself on various points placed for its determination at all and dismissed the appeal of assessee for default in non-appearance. Needless to say, the CIT(A) plays role of both adjudicating authority as well as appellate authority. Thus, the CIT(A) could not have shunned the appeal for non-....