MAHADEO VITHHALRAO LOKHANDE,NASHIK vs. INCOME-TAX OFFICER, WARD - 1(5), NASHIK

आदेश / ORDER

PER ANIL CHATURVEDI, AM :

Assessee is an individual and is stated to be deriving income from the profits and gains of the business and also income from other sources. Assessee filed his return of income for A.Y. 2014-15 on

31.03.2015 declaring total income at Rs.4,00,470/-. Thereafter, the

case was selected under CASS for scrutiny and subsequently

assessment was framed u/s 144 of the Act vide order dt.18.11.2016

determining the total income at Rs.20,40,360/-. Aggrieved by the order

of AO, assessee carried the matter before Ld.CIT(A), who vide order

dt.12.12.2018 (in appeal No.Nsk/CIT(A)-1/301/2016-17) dismissed the

appeal of assessee. Aggrieved by the order of Ld.CIT(A), assessee is

now before us and has raised the following grounds :

“1. The Learned CIT(A) erred in upholding the action of the Assessing Officer to pass assessment order u/s 144 of the Act without appreciating the fact that appellant could not attend assessment proceedings due to genuine / good and sufficient reasons. Therefore, it is prayed to set aside the order and grant appellant an opportunity to represent and explain his return of income.

assessee has raised various grounds but the main controversy is with

respect to the additions of Rs.4,95,420/- on account of unexplained

receipts u/s 68 of the Act and Rs.11,44,470/- being disallowance of

50% of total expenses.

assessee had shown receipts including the cash deposits in the Bank for

the year under consideration at Rs.31,88,290/- but in his return of

income, he had shown the total receipts at Rs.26,92,870/-. AO further

noticed that assessee had shown gross profit of Rs.26,92,870/- and net

profit of Rs.4,03,929/- after claiming expenses of Rs.22,88,941/-. AO

thus noted that assessee had offered the business receipts short by

Rs.4,95,420/- and claimed expenses to the tune of Rs.22,88,941/-

without filing any supporting documents. The submissions of the

assessee were not found acceptable to AO as assessee failed to show

the sources of income and to file supporting documents and thereafter

he made addition of Rs.4,95,420/- on account of unexplained receipts

u/s 68 of the Act and Rs.11,44,470/- being 50% of expenses of

Rs.22,88,941/- on account of non-genuine expenses. Aggrieved by the

order of AO, assessee carried the matter before Ld.CIT(A), who dismissed

the appeal of assessee. Aggrieved by the order of Ld.CIT(A), assessee is

now in appeal before us.

appear before the AO to due to genuine and sufficient reasons.

Ld.CIT(A) has confirmed the order of AO. He further submitted that due

to unavoidable circumstances, assessee could not appear before AO. He

submitted that if given a chance, assessee undertakes to appear before

the AO and furnish all the required details to substantiate his case and

prayed to set aside the assessment order. 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 ground is with respect to additions of

Rs.4,95,420/- u/s 68 of the Act and Rs.11,44,470/- being 50% of

expenses. It is an undisputed fact that despite service of notice of

hearing on various occasions, none attended before the AO and

Ld.CIT(A) and therefore Ld.CIT(A) has passed an order based on

written submissions. However, considering the fact that Ld.A.R. has

given an assurance that assessee will co-operate and appear before

lower authorities and 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, we are of the view

that one more opportunity be granted to the assessee to present his

case. We therefore restore the matter back to the file of AO to decide the

issue on merits in accordance with law. Needless to state that AO shall

grant adequate opportunity of hearing to both the parties. Assessee is

also directed to promptly furnish all the details called for by the lower

authorities. In view of our decision to restore the issue to AO, we are

not adjudicating on merits the grounds of the appeal raised by the

assessee. Thus, the grounds of assessee are allowed for statistical

purposes.

statistical purposes.

Order pronounced on 30th day of April, 2019.

Sd/- Sd/- (PARTHA SARATHI CHAUDHURY) (ANIL CHATURVEDI) �या�यक सद�य / JUDICIAL MEMBER लेखा सद�य / ACCOUNTANT MEMBER

पुणे Pune; �दनांक Dated : 30th April, 2019. Yamini

आदेश क� ��त�ल�प अ�े�षत/Copy of the Order forwarded to :

आदेशानुसार/ BY ORDER

// True Copy // व�र�ठ �नजी स�चव / Sr. Private Secretary आयकर अपील�य अ�धकरण ,पुणे / ITAT, Pune.