MR. BINAY KUMAR BEHERA,KEONJHAR vs. ITO, KEONJHAR WARD, KEONJHAR, KEONJHAR

None appeared on behalf of the assessee. Shri S.C.Mohanty, Sr. DR appeared on behalf of the revenue.

On perusal of the assessment order, we found that the assessee is a society which has been granted registration u/s.12AA of the Act. It was the submission that the assessee filed its return on 19.09.2018 disclosing total income at Rs.2,47,030/-. Subsequently the case of the assessee selected for limited scrutiny through CASS on reason that “high value cash deposit reported during the year”. A perusal of the para 2 assessment order, shows that the AO, on verification of the bank account of the assessee, found that the assessee deposited cash in the account but debited the amount through cheque to his vendor and there was no cash withdrawal during the year. It was also noted by the AO that the assessee did not file any books of account to substantiate its claim. Since, there was no compliance made by the assessee upto the completion of assessment, therefore, the AO completed the assessment estimating the net profit of the assessee @8% and added the same to the total income of the assessee treating the same as undisclosed income. Further on perusal of the order of the ld. CIT(A), clearly shows that notices were issued to the assessee by the ld. CIT(A), however, no compliance has been made by the assessee during the appellate proceedings. As no compliance has been made before either of the authorities below, therefore, in the interest of justice, the issues in this appeal are restored to the file of the ld. AO for readjudication after granting the assessee adequate opportunities to substantiate its claim. The assessee is directed to cooperate in the readjudication proceedings before the AO, positively.