SANJEEV BUILDTECH PVT. LTD,NEW DELHI vs. ACIT RANGE-21(1), NEW DELHI

Brief facts of the case are that the assessee filed return of income for the assessment year 2013-14 on 30.09.2013 declaring an income of Rs.62,86,760/-. Learned Assessing Officer recorded that in spite of giving several opportunities, assessee failed to enter appearance and submit their case, and therefore, by order dated 04.03.2016 u/s. 144 of the Income Tax Act, 1961 (“the Act”), ld. Assessing Officer determined income of the assessee at Rs.1,01,17,280/- by making addition of Rs.83,55,967/- on account of certain disallowances and Rs. 17,61,313/- u/s. 68 of the Act on account of unexplained credits appearing in the ledger account.

Assessee preferred appeal before the ld. CIT(A) who by order dated 27.11.2018 deleted the addition of Rs.17,61,313/- added u/s. 68 of the Act, but confirmed the addition of Rs.83,55,967/-.

It is the argument on behalf of the assessee that the notice in this matter were sent by the ld. Assessing Officer to an address which was vacated by the assessee long back but on coming to know of the assessment proceedings through other sources, assessee entered appearance on 10.02.2016 and sought time but because no sufficient opportunity was granted by the ld. Assessing Officer, assessee could not put forth their case before the ld. Assessing Officer and to contest the matter. It is submitted by the ld. AR that the assessee owns only one building and let it out and the income from such house property is charged by Assessing Officer as business income whereas in the next assessment year, such an income was treated as income from house property and if an opportunity is granted to the assessee, the assessee would substantiate its claim before the Ld. Assessing Officer.

We heard the ld. DR also. On a careful consideration of the matter and more particularly in view of the submission on behalf of the assessee that though the Assessing Officer had treated the income as business income as against income from house property as claimed by the assessee and for the subsequent assessment years, the same income was treated as income from house property, we are of the considered opinion that it would be just and proper to give an opportunity to the assessee to contest the matter on merits before the Ld. Assessing Officer. With this view of the matter we set aside the impugned order and remand the issue relating to addition of Rs.83,55,967/- to the file of the ld. Assessing Officer for considering the same under law after affording an opportunity to the assessee. Notice shall be issued at the address given in the cause title above. It is made clear that it is final opportunity given to the assessee to get the matter disposed of on merits.

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