DEEPSHIKHA NEGI,NEW DELHI vs. ITO WARD - 43(5), NEW DELHI

The assessee in her grounds of appeal has challenged the order of the CIT(A) in confirming the disallowance of Rs.4,56,707/- on account of derivative trnsaction.

Facts of the case, in brief, are that the assessee is an individual and filed her return of income on 30th July, 2016 declaring the total income at Rs.2,63,170/-. The case was selected for limited scrutiny under CASS to verify whether the investment and income relating to securities (derivative transactions) are duly disclosed. Subsequently, notice u/s 143(2) was issued and served upon the assessee. Further, a questionnaire along with notice u/s 142(1) was also issued to the assessee. However, there was no compliance from the side of the assessee. The AO, therefore, invoking the provisions of section 144 of the Act, determined the total income of the assessee at Rs.8,25,912/- being 0.5% of the total transactions to the tune of Rs.16,51,02,530/-. The assessee filed an appeal before the CIT(A), however, the ld.CIT(A) noted that the return was filed by the husband of the assessee. Further, the address in Form No.35 was incomplete. Therefore, notice was sent by speed post and the same was received back unserved with the postal remark ‘incomplete address.’ In view of the above and in absence of any details before him, the ld.CIT(A) dismissed the appeal filed by the assessee.

Aggrieved with such order of the CIT(A), the assessee is in appeal before the Tribunal.

The ld. Counsel for the assessee submitted that the ld.CIT(A) has not decided the appeal on merit and has dismissed due to non-appearance by the assessee. He submitted that given an opportunity, the assessee is in a position to explain her case before the CIT(A). The ld. DR has no objection to the same.

Considering the totality of the facts of the case and in the interest of justice, I deem it proper to restore the issue to the file of the CIT(A) with a direction to grant one more opportunity to the assessee to substantiate her case and decide the issue as per fact and law. The assessee is also hereby directed to appear before the CIT(A) and substantiate her case without seeking any adjournment under any pretext, failing which the ld.CIT(A) is at liberty to pass appropriate order as per law. I hold and direct accordingly. The grounds raised by the assessee are accordingly allowed for statistical purposes.