SRI. RANGANATHAGIRI,BHADRAVATHI vs. ASSISTANT COMMISSIONER OF INCOME-TAX, CIRLCE, 1, SHIMOGA

This appeal at the instance of the assessee is directed against CIT(A)’s order dated 30.06.2022. The relevant assessment year is 2017-2018.

The grounds raised read as follows:-

Without prejudice to the right to seek waiver with the Hon'ble CCIT/DG, the appellant denies himself liable to be charged to interest u/s. 234-B and 234-D of the Act, which under the facts and in the circumstances of the appellant's case deserves to be cancelled.

For the above and other- grounds that may be urged at the time of hearing of the appeal, your appellant humbly prays that the appeal may be allowed and Justice rendered and the appellant may be awarded costs in prosecuting the . Sri.Ranganathagiri. appeal and also order for the refund of the institution fees as part of the costs.

The brief facts of the case are as follows: The assessee an individual is a civil contractor. The assessee is also partner in Bhavani Constructions. For the assessment year 2017-2018, the return of income was filed on 07.11.2017 declaring total income of Rs.1,53,04,930. The assessment was completed u/s 143(3) of the I.T.Act vide order dated 09.10.2018. The Assessing Officer made an addition of Rs.3,44,01,780 on account of undisclosed contract receipts as per 26AS, bogus credits and bogus advances. Further, the addition was also made on the ground of disallowance of expenses in the absence of bill and vouchers and disallowance on account of statutory liability.

Aggrieved by the assessment completed u/s 143(1) of the I.T.Act, the assessee preferred appeal before the first appellate authority. The CIT(A) rejected the appeal of the assessee primarily for the reason that the assessee was not complying with the notices issued for filing written submissions. The CIT(A) further noticed that the assessee was not complying with the notices issued u/s 142(1) of the I.T.Act, by the A.O.

Aggrieved by the order of the CIT(A), the assessee has filed the present appeal before the Tribunal. The learned AR submitted that the CIT(A) is not correct in stating that there is no response to the notices issued dated 02.06.2022. It was submitted that the assessee had filed an adjournment application seeking time to upload the written submissions

The learned Departmental Representative submitted that the assessee has been habitually not complying with the various notices issued by the AO and also by the CIT(A), and therefore, the additions made by the AO may be sustained by the Tribunal.

We have heard rival submissions and perused the material on record. We notice that the assessee was not complying with various notices u/s 142(1) of the I.T.Act, issued by the A.O. Only for the notice issued during the course assessment proceedings on 10.09.2019, the assessee had electronically uploaded part of the details called for. Further, during the course of appellate proceedings also, there was no response nor written submissions filed. The assessee had produced the adjournment application dated 09.06.2022 (seeking time by four weeks for electronically uploading the written submissions). However, the same was not noted by the CIT(A) and the impugned order was passed on 30.06.2022. We strongly deprecated the practice of the assessee for not cooperating with the Revenue and furnishing the necessary evidences / written submissions. However, in the interest of justice and equity, we are of the view that one more opportunity should be granted to the assessee to . Sri.Ranganathagiri. furnish the relevant documents / written submission in support of his case. For the aforesaid purpose, the matter is restored to the files of the A.O. The assessee shall cooperate with the Revenue and shall furnish the necessary details / written submission in support of his case. The A.O. shall afford a reasonable opportunity to the assessee to furnish the necessary evidence and the written submissions. It is ordered accordingly.

In the result, the appeal filed by the assessee is allowed for statistical purposes.