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Income Tax Appellate Tribunal, COCHIN BENCH, COCHIN
Before: SHRI GEORGE GEORGE K.
Per GEORGE GEORGE K.,JUDICIAL MEMBER:
This appeal at the instance of the assessee is directed against the order of the CIT(A), Kottayam dated 25/11/2019. The relevant assessment year is 2010-11.
Briefly stated the facts of the case are as follows:
The assessee is an individual who is engaged in the manufacture and export of rubber mats under the proprietorship concern named Auberon. For the assessment year 2010-11, the return of income was filed on 10/12/2010 declaring a total income of Rs.5,08,430/-. Subsequently, a revised return was filed declaring, total income of Rs.4,95,140/-. The assessment was taken up for scrutiny by issuance of notice u/s. 143(2) of the I.T. Act. The assessment u/s. 143(3) of the I.T. Act was completed vide order dated 27/03/2013. The Assessing Officer made the following additions: i) Unexplained cash credit - Rs. 5,21,550 ii) Unexplained closing credit - Rs. 89,808 iii) Credit in SB A/c of Federal Bank - Rs. 1,72,000 iv) Cash flow statement deficiency - Rs.10,16,744 v) Interest income - Rs. 29,722 vi) Difference in salary income as per 26AS - Rs. 5,20,000
Aggrieved by the assessment completed under section 143(3) of the I.T.
Act, the assessee preferred appeal to the first appellate authority. The CIT(A) confirmed the additions made by the Assessing Officer and dismissed the appeal of the assessee. The relevant finding of the CIT(A) reads as follows:
“4.1 The facts of the case, the grounds of appeal and arguments of the Appellant have been considered. In the course of appeal proceedings, the appellant has filed a written submission on 04.07.2018 stating that the facts have not been considered by the Assessing Officer during the course of assessment proceedings. Considering the request of the appellant, vide letter dated 03.08.2018, the Assessing Officer was asked to give one more opportunity to the appellant to examine the correctness of the additions made and submit a report on sustainability of the additions made. The Assessing Officer vide letter dated 28.11.2018 has submitted that opportunity of hearing was given to the appellant on 10.09.2018 and 17.10.2018 and the appellant neither appeared nor replied or presented his case at any of these occasions. The Assessing Officer therefore submitted that the additions made in the assessment order may be sustained.
4.2 A copy of the remand report was forwarded to the Appellant and he was given another opportunity of hearing on 18.11.2019 and during the course of appeal hearing, the learned AR did not produce any documentary evidence to support the grounds raised in the appeal. Considering these facts, in eh absence of any evidence to contradict the additions made in the assessment order, the grounds raised by the Appellant are dismissed.”
Aggrieved by the order of the CIT(A), the assessee has preferred this appeal before the Tribunal. The Ld. AR has filed a paper book enclosing therein copy of the Bank account with Federal Bank Ltd., copy of Chitty account ledger, copies of certificates from Chitty Company, copy of statement explaining source for deposits in the Bank account, etc. The Ld. AR submitted that the assessment was getting time barred on or before 31-03-2013. Since the assessment was getting time barred, no proper opportunity of hearing was granted to the assessee. It was submitted that for effective representation on the issues raised in this appeal, the appeal may be restored to the file of the Assessing Officer for de novo consideration.
4.1 The Ld. DR on the other hand strongly supported the orders of the Assessing Officer as well as of the CIT(A).
I have heard the rival submissions and perused the material on record. The Assessing Officer has directed the assessee to produce the details/books of accounts for completion of assessment during the months of February and March, 2013. The assessment was to be completed on or before 31/03/2013.
The CIT(A) in his order has stated that the assessee was given adequate opportunity of hearing by the Assessing Officer on 10/09/2018 and 17/10/2018.
The above dates mentioned by the CIT(A) does not figure in the column of date(s) of hearing mentioned in the assessment order dated 27/03/2013 (Column of date(s) of hearing, namely Column No. 11 of the assessment order).
In the facts and circumstances of the case, I am of the view that in the interest of justice and equity, one more opportunity should be granted to the assessee to produce necessary evidence to prove his case. For the said purpose, the issues raised in this appeal are restored to the Assessing Officer for de novo consideration. The assessee shall produce necessary evidence/material to prove his case that the additions made by the Assessing Officer are not warranted. The Assessing Officer shall afford a reasonable opportunity of hearing to the assessee. It is ordered accordingly.