Sanjay Tondon vs ITO

PER MANISH AGARWAL, AM :

The present appeal is filed by assessee against the order dated 30.09.2025 of Ld. Commissioner of Income Tax (A), National Faceless Appeal Centre (“NFAC”), Delhi [“Ld. CIT(A)”] in Appeal No. NFAC/2021-22/10349868 passed u/s 250 of the Income Tax Act, 1961 [“the Act”] arising out of assessment order dated 27.03.2024 passed u/s 143(3) r.w.s 144B of the Act pertaining to Assessment Year 2022-23.

At the outset, it is observed that the appeal of the assessee was dismissed by Ld. CIT(A) for non-prosecution. Before us, the Ld. AR submitted that though the Ld. CIT(A) issued notices to the assessee, however, the assessee failed to file any evidences or submissions. He further stated that even before the AO no submissions were made and the assessment order was also passed ex-parte. He thus, prayed that one more opportunity be provided and the matter may be sent back to the file of the AO for fresh adjudication. Ld. AR further undertake that assessee will participate before the AO and will file all the details as called for, if the matter is remand back to the file of the AO. He prayed accordingly.

Per contra, the Ld. Sr. DR vehemently objected to the request of the assessee.

After considering the arguments of both the parties and material available on record, it is observed that in the instant case, during the course of assessment proceedings, assessee has failed to explain the nature and source of cash deposited in the bank accounts during the entire year. Even during appellate proceedings, the assessee has not submitted any explanation regarding the nature and source of cash deposited in bank accounts. It is true that the assessee has not filed any details yet in the interest of justice the assessee should not be left unheard. Under these circumstances, as a principle of the natural justice, one more opportunity is given to the assessee and the matter is remanded back to the file of the AO with direction to pass the assessment order denovo afresh after providing reasonable opportunity of being heard to the assessee. The assessee is also directed to participate in set aside proceedings before the AO and file all the details/ evidences as called for. With these directions, all the grounds of appeal are allowed for statistical purposes.

In the result, appeal of the assessee is allowed for statistical purposes.