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Income Tax Appellate Tribunal, PUNE BENCH “SMC”, PUNE
Before: SHRI ANIL CHATURVEDI
आदेश / ORDER PER ANIL CHATURVEDI, AM :
This appeal filed by assessee is emanating out of the order of 1. Commissioner of Income Tax (Appeals) – 4, Pune dated 21.05.2019 for A.Y. 2010-11.
The relevant facts as culled out from the material on record are as under :-
Assessee is an individual stated to be engaged in the business of providing JCB’s/Tippers/Dumpers on hire and earns income from rent on godowns and machinery. In this case assessment was re-opened
u/s 147 of the Act by issuing notice u/s 148 of the Act on 31.03.2017.
Notice u/s 143(2) and 142(1) of the Act was thereafter issued on
10.10.2017. In response to notice u/s 148 of the Act, assessee filed
his return of income for A.Y. 2010-11 on 07.10.2017 declaring total
income at Rs.6,33,630/-. Subsequently, assessment was framed u/s
143(3) r.w.s. 147 of the Act vide order dated 20.11.2017 and the total
income was determined at Rs.10,48,300/-. Aggrieved by the order of
AO, assessee carried the matter before Ld.CIT(A), who vide order dated
21.05.2019 (in appeal No.PN/CIT(A)-4/Ward-6(2), Pune/149/2017-
18/60) dismissed the appeal of assessee. Aggrieved by the order of
Ld.CIT(A), assessee is now in appeal and has raised the following
grounds :
“1. The learned CIT(A) erred in confirming the addition of Rs.3,50,000/- on account of disallowance of 12% of various expenses. 2. The learned CIT(A) failed to appreciate that appellant had submitted details of allowance of depreciation Rs.6,23,525/-, Interest on loan expenditure Rs.3,19,285/- and salary expenditure Rs.6,27,000/- and no disallowance was warranted out of these allowances and expenses. 3. The learned CIT(A) failed to appreciate that the disallowance of 12% of all the expenses is on higher side and should have restricted to reasonable amount as prayed by appellant.”
All the grounds being inter-connected are considered together.
Before me, Ld.A.R. at the outset submitted that Ld.CIT(A) has
passed an ex-parte order and has not decided the issue on merits.
Ld.A.R. also filed the sworn affidavit of assessee wherein assessee
submitted that notices of hearing of appeal were served on his wife on
16.11.2018 and 05.02.2019 and that his wife being un-educated did
not know the significance of said notices and hence, forgot to handover
the same or to intimate the same to him and that he knew about the
same only after receipt of ex-parte order passed by Commissioner of
Income Tax (Appeals)-4, Pune. Ld.A.R. submitted that if given a
chance, assessee undertakes to appear before lower authorities and
furnish all the required details to substantiate his case. He therefore
submitted that assessee be granted one more opportunity to explain
his case. Ld.D.R. on the other hand supported the order of AO and
Ld.CIT(A) and objected to Ld.A.R.’s prayer for 2nd innings.
I have heard the rival submissions and perused the material on
record. The issue in the present case is with respect to addition of
Rs.3,50,000/- being 12% of various expenses claimed. The perusal of
order of Ld.CIT(A) reveals that Ld.CIT(A) has passed an ex-parte order
without deciding the issue on merits. In view of the well settled
principle of natural justice that sufficient opportunity of hearing
should be afforded to the parties and no party should be condemned
unheard and in view of the reasons mentioned in the affidavit filed by
the assessee, I am of the view that one more opportunity be granted to
the assessee to present his case before the lower authorities. I
therefore restore the matter back to the file of Ld.CIT(A) to decide the
issue on merits in accordance with law. Needless to state that
Ld.CIT(A) shall grant adequate opportunity of hearing to both the
parties. Assessee is also directed to promptly furnish all the details
called for by the authorities. In view of my decision to restore the
issue to Ld.CIT(A), I am not adjudicating on merits the grounds of the
appeal raised by the assessee. Thus, the grounds of assessee are
allowed for statistical purposes.
In the result, the appeal of the assessee is allowed for statistical purposes.
Order pronounced on 9th day of October, 2019.
/- Sd/- (ANIL CHATURVEDI) लेखा सद�य / ACCOUNTANT MEMBER
पुणे Pune; �दनांक Dated : 9th October, 2019. Yamini
आदेश क� ��त�ल�प अ�े�षत/Copy of the Order forwarded to : 1. अपीलाथ� / The Appellant 2. ��यथ� / The Respondent 3. CIT(A)-4, Pune. 4. Pr. CIT-3, Pune. 5 �वभागीय ��त�न�ध, आयकर अपील�य अ�धकरण, “एक सद�य” / DR, ITAT, “SMC” Pune; गाड� फाईल / Guard file. 6.
आदेशानुसार/ BY ORDER
// True Copy // व�र�ठ �नजी स�चव / Sr. Private Secretary आयकर अपील�य अ�धकरण ,पुणे / ITAT, Pune.