SITARAM FRUITS CO.,GANJAM vs. ITO,WARD-1, BERHAMPUR

It was submitted by the ld. AR that the assessee is engaged in the business of Whole Sale and Retail Trading of fruits at Church Road, Berhampur, Ganjam. It was the submission that the assessee obtained fruits from various growers, sells the fruits on behalf of the growers and then pays the growers after taking commission. It was the submission that the return had also been filed by the assessee along with the report under Section 44AB of the Act. It was the submission that there has been some failure in providing details in the course of assessment. It was the submission that the various notices issued by the AO had not been 2 received by the assessee. It was the submission that the issues may be restored to the file of ld. AO for readjudication and the assessee would cooperate in the set aside proceedings.

In reply, ld. CIT-DR vehemently supported the orders of the authorities below.

We have considered the rival submissions. In regard to the submission of the ld. AR of the assessee, during the course of hearing, ld. AR was asked to provide the email address of the assessee to which notices have to be sent. In this regard, ld. AR drew our attention to Form 35 filed before the ld. CIT(A), wherein the email address of the assessee is mentioned as sridhara.paanigrahy@gmail.com. It was the further submission that the main dispute is in regard to the salary and wages paid. It was the submission that as the assessee has to get the product sold. The assessee was paying the salary and wages in cash. It was the submission that the AO had not accepte d these facts. This claim of the assessee is also to be considered by the AO when completing the readjudication of assessment afresh. This being so, in the interest of justice and to grant the assessee adequate opportunities to substantiate his case, the issues in this appeal are restored back to the file of ld. AO for readjudication after granting the assessee adequate opportunity of being heard. It would also be worthwhile to mention here that the AO could also send physical notice to the assessee in the event that the assessee is not cooperating in the set 3 ITA No.250/CTK/2024 aside proceedings. Should the assessee not cooperate in the set aside proceedings, liberty is granted to the AO to take adverse views.

In the result, appeal of the assessee is partly allowed for statistical purposes. Order dictated and pronounced in the open court on 01/08/2024.