SANJAY SHARMA,KOLKATA vs. A.C.I.T., CIRCLE-40, KOLKATA, KOLKATA

Brief facts of the case are that the assessee is an individual and filed his return of income for A.Y. 2015-16 declaring total income at Rs. 16,97,990/-. The case of the assessee was selected for scrutiny through CASS under limited scrutiny and notices u/s 143(2) and 142(1) were issued upon the assessee. In response to the notices, AR of the assessee appeared and file requisite documents in such notices. During the assessment proceeding, the ld. AO noticed that the assessee had made certain transactions with different parties and assessee has also shown sundry creditors totaling of Rs. 10,26,06,475/- for the financial year 2014-15. During the assessment proceeding, the assessee could not able to produce any details about the sundry creditors and failing to discharge by providing names and address to the creditors. Therefore, the amount of Rs. 10,26,06,475/- is added back to the total income of the assessee u/s 41(1) of the Act. Besides that the ld. AO on perusal of the books of account submitted by the assessee and Form No. 26AS, the ld. AO found that there were mismatch of different parties during the assessment year in question. The ld. AO asked the assessee to submit reasons for such discrepancies but the assessee failed to submit any reply within the stipulated time prescribed by the AO, therefore, the AO added back of Rs. 36,42,987/- to the total income of the assessee.

Dissatisfied with the above order, assessee preferred an appeal before the Ld. CIT(A). However, the appeal of the assessee was partly allowed by the ld. CIT(A).

Aggrieved by the above order, the assessee is in appeal before the Tribunal raising multiple grounds of appeal. However, the main grievance of the assessee is that while passing the impugned order against the assessee, no reasonable opportunity has been given to the assessee and order was passed ex-parte.

The ld. DR was fair enough not to oppose such request made by the ld. AR. We, therefore, under the given facts and circumstances of the case, we are of the considered view that since the impugned order passed by the ld. CIT(A) did not decides the issue on merits of the case. Therefore, we in the interest of justice set aside the impugned order and remit it back to the file of AO for deciding the issue raised before us by way of speaking order. We also direct the assessee to furnish such evidence in support of its claim and remain vigilant in receiving the notice from the ld. AO. It is also clarified that assessee should not request for any further adjournment unless otherwise required for reasonable cause and should file all necessary evidence/documents in support of its claim so as to facilitate the ld. AO for passing the order in accordance with law. Needless to mention that assessee should be given proper opportunity of being heard.

In the result, the appeal of the assessee is allowed for statistical purpose.