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Income Tax Appellate Tribunal, CUTTACK BENCH CUTTACK
Before: SHRI GEORGE MATHAN & SHRI MANISH AGARWAL
आदेश / O R D E R Per Bench : This is an appeal filed by the assessee against the order dated 20.03.2024, passed by the ld. CIT(A), National Faceless Appeal Centre (NFAC), Delhi, in DIN & Order No.ITBA/NFAC/S/250/2023- 24/1062977166(1) for the assessment year 2017-2018. 2. It was submitted by the ld. AR that the AO had made disallowance u/s.40(a)(ia) of the Act without treating the assessee as an assessee in default. It was the submission that most of the additions are made in respect of the items which were shown as stock in trade and this relates to the earlier years. It was the submission that admittedly the assessee had not appeared before the AO in the course of assessment and this has caused the assessment to be done ex-parte. It was the submission that the ld. CIT(A) also did not consider the explanation of the assessee, 2 especially in view of the fact that the evidences were not properly placed before the AO. It was the prayer that if the issues in this appeal are restored to the file of AO, the assessee would be able to substantiate its claim.
In reply, ld. Sr. DR submitted that the assessee has been non- cooperative not only before the AO but even before the ld. CIT(A), insofar as, out of the seven notices, the assessee has complied with only two of the notices. He, thus, vehemently supported the orders of the ld. AO and the ld. CIT(A).
We have considered the rival submissions. As it is noticed that the assessee has been not providing all the details before the AO and this has led to the ex-parte assessment, in view of the submissions of the ld. AR and in the interest of justice, the issues in this appeal are restored to the file of AO for readjudication after granting the assessee adequate opportunities of being heard. Should the assessee be non-cooperative before the AO in second round of proceedings, liberty is granted to the AO to draw adverse inference.
In the result, appeal of the assessee is partly allowed for statistical purposes. Order dictated and pronounced in the open court on 18/07/2024.