DEBENDRA KUMAR SAHOO,KENDRAPARA vs. INCOME TAX OFFICER, KENDRAPARA WARD, KENDRAPARA, KENDRAPARA

Shri Himanshu Bhusan Jena, Himanshu Bhusan Jena, ld AR appeared for the assessee and the assessee and Shri S.C.Mohanty, Sr. S.C.Mohanty, Sr. DR appeared for the revenue.

It was submitted by ld AR that the ld CIT(A) has dismissed the appeal of the assessee by confirming the addition made by the AO without providing sufficient effective opportunity of being heard to the assessee, which is gross violation of principles of natural justice. It was the submission that the order passed u/s.143(3)/147 of the Act by the Assessing Officer is without jurisdiction and without the authority of law. It was the further submission that the explanation furnished by the assessee was not considered during the course of assessment proceedings and the addition has been made by invoking the provisions of section 69A of the Act. Ld AR further submitted that the matter be restored to the file of the Assessing Officer and the assessee would cooperate by furnishing all the relevant documents to the satisfaction of the Assessing Officer.

In reply, ld Sr DR vehemently supported the order of the Assessing Officer and ld CIT(A).

We have considered the rival submissions. A perusal of the order of the ld CIT(A) shows that as the assessee failed to comply with the notices, the appeal was disposed of after taking into consideration the materials available on record. In the impugned order ld CIT(A) has taken the plea that the assessee is the owner of the money deposited in the bank accounts stand in the name of the assessee. However, it is the contention of ld AR that the assessee is the collection agent and the amounts were collected from the customers and transferred through demand draft to Artha Tatva, P a g e 2 | 4 for which he got the salary. He stated the modus operandi adopted by the assessee in collecting the cash representing instalments from the customers and deposit the same in the bank account of the assessee and thereafter transferring the amounts to Artha Tatwa. Hence, the assessee is merely acting as a post office/ collection agent in this entire episode. The above explanation of the assessee has not been considered by the Assessing Officer. In view of above, in the interest of justice, the issues in this appeal are restored to the file of the Assessing officer for fresh adjudication on merits. The assessee is directed to cooperate in the set aside proceedings and furnish all the required documents in support of the case, failing which, the Assessing Officer is at liberty to pass the assessment order as per law.

In the result, appeal of the assessee stands partly allowed for statistical purposes.