MAHESH D. GHULE,PUNE vs. INCOME-TAX OFFICER, WARD - 6 (2), PUNE

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.

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.”

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.

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.

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.