PREM RAJ RAYEPUDI,HYDERABAD vs. THE ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE-1(1),, VIJAYAWADA

All the grounds of appeal are related to the addition made by the AO to the extent of Rs. 35,54,680/- relating to investment in shares of M/s. Srikara Parentarals Pvt. Ltd. which was sustained by the ld.CIT(A). The AO completed the assessment exparte u/sec. 144 for non-response of the assessee for the notices issued by the AO. The ld.CIT(A) confirmed the order of the AO exparte since there was no response from the assessee. Against which, the assessee filed the appeal before this Tribunal and requested to remit the matter back to the file of the AO.

We have heard ld.DR and the material placed on record. We do not appreciate the attitude of the assessee in not complying with the notices issued by the authorities. However, since, the assessee pleaded that the notices were not served to him due to change in the address, in the interest of justice we are inclined to give one more opportunity to the assessee. Therefore, we set aside the orders of the lower authorities and remit the matter back to the file of the AO to redo the assessment afresh on merits after giving proper opportunity to the assessee. The assessee is also directed to cooperate with the department and comply with the notices without fail.

In the result, appeal filed by the assessee stands allowed for statistical purpose.