SALEEM SAUDAGAR,BHOPAL vs. ITO-4(3), BHOPAL

Facts, in brief, as noted by the AO are that the assessee had paid credit card bills for Rs.71,92,701/- against the credit card of HDFC bank. The AO noted that the assessee did not respond to the query letter issued, thus the SMC I.T.A. 822 of 2019 2 Saleem Saudagar source of deposit of Rs.71,92,701/- remained unexplained. The AO framed the assessment and made the addition of Rs.2,28,060/- (Rs.1,21,010 + Rs.1,07,050).

Felt aggrieved, the assessee preferred an appeal before Ld. CIT(A) who dismissed the appeal of the assessee on the ground that in the remand report, the AO had submitted that the assessee had not furnished copy of work order/bills of petty contract work in the remand report proceedings as well as assessment proceedings, therefore, the addition is justified.

Now the assessee is in appeal before this Tribunal. Before me, ld. Counsel for the assessee submitted that the assessee had made payments of Standard Chartered Bank credit card of limit of Rs.20,000/- and the amount of Rs.71,92,701/- is not correct. Copies of relevant bank accounts were also furnished before the AO which prove that the addition made by the AO is baseless but the AO without affording adequate opportunity of being heard to the assessee passed exparte order u/s 144 of the I.T. Act which is unjustified.

On the other hand, ld. Sr. DR relied upon the order of the Revenue Authorities.

I have heard rival submissions and perused the material available on record and gone through the orders of authorities below. Before me, the ld. Counsel contended that the assessee paid credit card bill of Standard Chartered Bank of Rs.20,000/-, therefore, the amount of Rs.71,92,701/- is not correct. Further, I find that the sufficient opportunity of being heard was not SMC I.T.A. 822 of 2019 3 Saleem Saudagar provided to the assessee and the AO passed the exparte order u/s 144 of the I.T. Act. Considering these facts and the contentions of the ld. Counsel for the assessee, I deem it proper to set aside the orders of the Revenue Authorities. The AO would verify these facts and submissions of the ld. Counsel for the assessee and thereafter pass the order afresh. Needless to mention here that adequate opportunity of being heard shall be provided to the assessee and the assessee is also at liberty to file any further evidence, if any, in support of the claim.

In result, appeal filed by the assessee is allowed for statistical purposes only. Order was pronounced in the open court on 21 .12.2020.