What did the Tribunal hold?

The Tribunal set aside the impugned order and remitted the matter back to the AO for a fresh assessment. The AO was directed to provide a reasonable opportunity of hearing to the assessee.

The assessee's appeal arose from an order by the CIT(A) which confirmed an addition made by the AO and also enhanced it. The assessee claimed income from 5 trucks but failed to provide supporting documents.

What were the issues?

Whether the assessment order passed u/s.144 without adequate opportunity and the CIT(A)'s order confirming addition and making enhancement were justified without proper evidence.

Munira Shafi Pathan, Satara vs ITO | ITAT Pune 2023

Income Tax Appellate Tribunal, SMC BENCH, PUNE

Before: SHRI R.S. SYAL

For Respondent: Ms. Neha Deshpande

आदेश / ORDER

PER R.S. SYAL, VP:

This appeal by the assessee arises out of the order dated 28-11-2022 passed by the CIT(A) in National Faceless Appeal Centre, Delhi u/s.250 of the Income-tax Act, 1961 (hereinafter also called ‘the Act’) in relation to the assessment year 2012-13.

In this appeal the assessee is aggrieved by the enhancement made by the ld. CIT(A) pursuant to the assessment order passed u/s.144 of the Act.

I have heard the ld. DR and gone through the relevant material on record. There is no appearance from the side of assessee despite notice. I am, therefore, proceeding to dispose the appeal ex parte qua the assessee.

It is seen that the assessee made out a case before the ld. CIT(A) that he had 5 trucks, income from which was deposited in the bank account that was subjected to the addition by the AO.

Since the assessee could not substantiate his argument by placing on record any relevant documents evidencing his ownership/possession of the 5 trucks, the ld. CIT(A) not only confirmed the addition but also made enhancement in respect of certain more deposits made in another bank account. Considering the fact that the AO passed the assessment order u/s.144 of the Act without granting adequate opportunity of hearing and the ld. CIT(A) not only confirmed the addition but also made enhancement because the assessee could not lead any evidence in support of the addition/enhancement, I am of the considered opinion that it would be in the fitness of things if the impugned order is set aside and the matter is remitted to the file of the AO. I order accordingly and direct him to make the assessment afresh after affording reasonable opportunity of hearing. Needless to say, the assessee will be at liberty to lead any evidence in the fresh assessment as he feels expedient.

In the result, the appeal is allowed for statistical purposes.

Order pronounced in the Open Court on 16th May, 2023.

MUNIRA SHAFI PATHAN,SATARA vs. INCOME TAX OFFICER, SATARA

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