APARNA PRADHAN,KENDRAPARA vs. ITO KENDRAPADA WARD, KENDRAPADA

It was submitted by the ld. AR that the assessee is engaged in the business of brokerage, consultancy, commodity exchange transaction and derivatives during the financial year 2012-2013 and filed her return of income on 14.01.2014 declaring total income at Rs.8,16,150/-. Initially, the assessment in the case of the assessee was framed u/s.143(3) of the Act by the AO on 09.03.2016 determining total income at Rs.10,37,730/-. Subsequently, the ld. Pr.CIT, Cuttack charge, Cuttack set aside the assessment order passed u/s.143(3) of the Act for adjudication of the issues afresh. Accordingly, the AO issued notice u/s.142(1) of the Act. Since the assessee failed to comply the notice issued by the AO, therefore, he proceeded to pass best judgment assessment or ex-parte assessment u/s.144 of the Act. During the course of assessment, it was observed by the AO that the assessee could not produce supporting documentary evidences to substantiate the expenses claimed at Rs.37,76,898/- in her return of income. Even no books of accounts have been produced by the assessee. Accordingly, the AO added the profit of the assessee at Rs.27,71,913/- to the total income of the assessee. It was submitted by the ld. AR that the ld. CIT(A) has committed gross error of law as well as of facts in not providing sufficient opportunity of being heard to the assessee. Therefore, it was the prayer that the issue in the appeal may be restored to the file of ld. AO for which the assessee would be able to substantiate her claim before the ld. AO.

In reply, ld CIT-DR vehemently submitted that the assessee has been non-cooperative and if at all to decide to restore the matter, the issues may be restored to the file of the ld CIT(A). It was the submission that in fact on account of the non-cooperation, the appeal of the assessee is liable to be dismissed.

We have considered the rival submissions. A perusal of the facts of the present case shows that the assessee could not represent her case before the ld. CIT(A) as a result of which, the ld. CIT(A) has dismissed the appeal of the assessee on account of non-prosecution. On perusal of the order of the ld. CIT(A), it is found that the ld. CIT(A) has dismissed the appeal of the assessee on account of non-compliance of the notice issued by the AO u/s.142(1) of the Act. Further on perusal of the assessment order, it is discernible that the assessee had also not provided any documents during the course of assessment proceedings. On being asked, during the course of hearing, with regard to non-compliance on the part of the assessee before both the authorities below, ld.AR of the assessee submitted that the assessee may be provided one more opportunity to represent its case before the ld. AO. This being so, in the interest of justice, the issues in the appeal are restored to the file of the Assessing Officer for re-adjudication after granting the assessee adequate opportunity of being heard. The assessee is directed to cooperate in the assessment proceedings.

In the result, appeal of the assessee is partly allowed for statistical purposes. Order dictated and pronounced in the open court on 10/10/2023. Sd/- Sd/- (राजेश कुमार) (जाजज माथन) (RAJESH KUMAR) (GEORGE MATHAN) ऱेखा सदस्य/ ACCOUNTANT MEMBER न्यानयक सदस्य / JUDICIAL MEMBER कटक Cuttack; ददनाांक Dated 10/10/2023 Prakash Kumar Mishra, Sr.P.S. आदेश की प्रनतलऱपऩ अग्रेपषत/Copy of the Order forwarded to : अऩीऱाथी / The Appellant- 1. Aparna Pradhan, Haladidiha, At: Haladidiha, PO: Ostapur, Dist: Kendrapara-75422 प्रत्यथी / The Respondent- 2. ITO, Kendrapara Ward, Kendrapara आयकर आयुक्त(अऩीऱ) / The CIT(A), 3.