BADSHA KHAN,KACHIRI BAZAR vs. ITO, BHADRAK, BHADRAK

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ITA 298/CTK/2024Status: HeardITAT Cuttack10 September 2024AY 2018-193 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal restored the issues to the Assessing Officer for fresh adjudication. The assessee was given an opportunity to present the trade license and bank account statements to justify their case.

What were the facts?

The Assessing Officer passed an ex-parte assessment order under section 147 r.w.s. 144, determining the total income based on an assumed net profit of 8% of turnover. The assessee later submitted fresh evidence like a trade license and bank statements, but these were not considered by the lower authorities.

What were the issues?

Whether the lower authorities erred in not considering the fresh evidence submitted by the assessee and whether the assessment order passed without proper opportunity to the assessee is sustainable.

Which sections of the Income-tax Act were involved?

Section 147,Section 144

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, IN THE INCOME TAX APPELLATE TRIBUNAL,

Before: MANISH AGARWAL

For Appellant: Shri Digant Das, Adv
For Respondent: Shri S.C.Mohanty, Sr
Hearing: 10/9Pronounced: 10/9

This is an appeal filed by the assessee against the order of the ld This is an appeal filed by the assessee against the order of the ld This is an appeal filed by the assessee against the order of the ld CIT(A), NFAC, Delhi dated 10.5.2024 CIT(A), NFAC, Delhi dated 10.5.2024 in Appeal No. in Appeal No.NFAC/2017- 18/10272161 for the assessment year 2018-19.

2.

Shri Digant Das, Digant Das, ld AR appeared for the assessee and Shri the assessee and Shri S.C.Mohanty, Sr. S.C.Mohanty, Sr. DR appeared for the revenue.

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3.

It was submitted by ld AR that the Assessing Officer has passed the assessment order u/s.147 r.w.s. 144 of the Act, wherein, he has computed the total income of the assessee at Rs.1,99,96,790/- and determined the net profit at 8% of the turnover, as the assessee could not comply with the notices issued to the assessee. Ld AR has also filed before us the fresh evidence in the form of Trade License.

4.

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

5.

We have considered the rival submissions. A perusal of the order of the first appellate authority, it is noticed that the assessee has filed fresh evidences in the form of trade license and further claims that his turnover is much lower than what has been calculated by the Assessing Officer in the assessment order. It is noticed that the assessee has not represented before the Assessing Officer and also not produced any books of account to justify the source of deposit in his bank accounts. Before the ld CIT(A), the assessee has furnished the trade license and bank account statement, for which, the assessee has not filed necessary application under Rule 46A. Consequently, the ld CIT(A) has also not considered such evidences. This being so, in the interest of justice, the issues in this appeal are restored to the file of the Assessing Officer for fresh adjudication after giving the assessee reasonable opportunity of being heard. The assessee may file the trade license and bank account statement in support of his case.

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6.

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

Order dictated and pronounced in the open court on 10/9/2024.

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