2026 (5) TMI 559

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.... 27.09.2022 passed under section 143(3) read with section 144B of the Income Tax Act, 1961 [hereinafter referred to as "the Act"] for A.Y. 2020-21. Brief Facts 2. The assessee is an individual and proprietor of "Techno Repair Construction" engaged in construction activity. The assessee filed his return of income on 15.02.2021 declaring total income of Rs. 49,76,850/-. The case was selected for complete scrutiny under the Faceless Assessment Scheme on the basis of information regarding (i) large investment in immovable property as per Form 26QB, (ii) purchase consideration being lower than stamp duty value, and (iii) high liabilities as compared to income. During the course of assessment proceedings, notices under sections 143(2) and 1....

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....r Rs. 3,38,10,000/- whereas the stamp duty value was Rs. 6,47,21,500/-. In the absence of satisfactory explanation and evidences, the difference of Rs. 3,09,11,500/- was brought to tax under section 56(2)(x) of the Act. Further, the Assessing Officer observed mismatch between turnover declared in GSTR-3B at Rs. 16,46,18,549/- and turnover shown in return at Rs. 13,59,42,221/-. In absence of reconciliation, the difference of Rs. 2,86,76,328/- was added to income. 2.2 The assessee preferred appeal before the learned CIT(A). The learned CIT(A), however, dismissed the appeal ex parte without adjudicating the issues on merits. 3. Aggrieved by the order of CIT(A), the assessee is in appeal before us raising following grounds of appeal: ....

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.... erred in sustaining the addition of Rs. 2,86,76,328 without appreciating the reconciliation submitted and wrongly applying section 37, which has no application to turnover mismatch. vii. The Appellant craves leave to add, amend, alter or withdraw any of the above grounds at the time of hearing. 4. The learned Authorised Representative (AR) submitted that the learned CIT(A) has erred in dismissing the appeal ex parte without granting effective opportunity of hearing. It was submitted that the assessee had responded to the notice issued under section 250 through the e-proceedings portal and had sought adjournment on account of the authorised representative being engaged in tax audit work, requesting extension of time to furnish s....

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....assed the impugned order ex parte without adjudicating the issues on merits. The material placed before us, including the e-proceedings response acknowledgement, demonstrates that the assessee had sought adjournment and extension of time to file submissions. The said request was not considered before passing the impugned order. Further, the assessee has filed an affidavit before us explaining the circumstances which led to non-compliance before the learned CIT(A). The contents of the affidavit indicate that the assessee was prevented by reasonable cause from effectively representing his case. The explanation offered appears to be bona fide and remains uncontroverted. 6.2 We also note that the issue relating to addition under section 56(2....