CIT(A) ex parte dismissal set aside; assessee given fresh hearing in unexplained investment appeal

5-Second Takeaway

The CIT(A)'s ex parte dismissal was set aside because the assessee was found entitled to one more opportunity of hearing. The appeal was restored for fresh adjudication in accordance with law.

During reassessment, the Assessing Officer treated Rs. 1,76,000 as unexplained investment under section 69 read with section 115BBE after holding that the assessee had not satisfactorily explained the alleged cash payment for a property purchase. The reassessment was completed under section 147 and the assessee carried the matter in appeal.

The CIT(A), however, dismissed the appeal ex parte because there was no compliance with the hearing notices issued on the listed dates. On further review, the appellate authority considered that the assessee should receive one more opportunity to be heard.

Accordingly, the ex parte order was set aside. The matter was restored to the CIT(A) for fresh adjudication in accordance with law.