Clear Violation of S. 250(6): ITAT sets aside Ex- Parte Order regarding addition on Cash Deposits of Rs. 33 Lakhs

The ITAT set aside an ex-parte order concerning a cash deposit of ₹33 lakh, ruling that there was a clear violation of Section 250(6) of the Income Tax Act. The addition was based on a cash deposit that was not explained to the satisfaction of the Assessing Officer. The tribunal found that the procedural rules were not followed in passing the ex-parte order and the taxpayer was not given a fair opportunity to present their case. The ITAT emphasized that procedural fairness must be maintained in tax assessments and the taxpayer’s rights must be safeguarded. The matter was sent back for fresh proceedings to ensure proper compliance.