ITAT orders fresh hearing for Ex Parte dismissal of Agricultural Income Tax case [Read Order]

This case originated from an appeal filed by an assessee challenging an order issued by the (CIT(A)) concerning the assessment year 2020-2021.

The matter denotes Rajeev's return of income for assessment year 2020-2021 in which he reported a total income of Rs.5,42,320 and notably claimed Rs.45,00,000 as exempt agricultural income. This claim caused an e- assessment selection due to a substantial increase in his reported agricultural income .

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The Assessing Officer (A0) issued a statutory notice under section 143(2) and 143(1) of the Act through both electronic means and a designated verification unit. However no response was received from the assessee , subsequently a final show cause notice under section 144 of the act was issued but again no response was received .The failure to provide any documentary evidence or explanation from the side of assessee , AO made an assessment under section 144 of the Act and concluded that the entire Rs.45,00,000 claimed as agricultural income as unexplained which lead to revised total income of assessee as Rs.50,42,320.

The assessee filed an appeal in CIT(A) and they dismissed the appeal as ex parte by confirming the order of the AO without properly examining the various details or merits of the case .Therefore the assessee requested for an opportunity to present the case again before the CIT(A) and it was fairly agreed to the fact that in the interest of justice the tribunal may remand the matter back to the CIT(A) with the direction to re-examine the issue afresh .

After reviewing the submissions and available records, it was determined that the CIT(A) had dismissed the assessee's appeal ex parte. This dismissal had confirmed the Assessing Officer's (AO) order without the CIT(A) having examined the merits of the case or applied any independent findings.The CIT(A) was directed to re-examine the issue afresh, ensuring the assessee was given a fair opportunity to be heard. The assessee, in turn, was also directed to provide all supporting documents to substantiate their claim before the CIT(A).

The ITAT comprising Sonjoy Sarma (Judicial Member) and Inturi Rama Rao ( Accountant Member) allowed the assessee’s appeal for statistical purposes.

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