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Facts
The assessee filed a return for AY 2017-18 declaring Rs.4,62,760/-. The AO completed assessment at Rs.14,90,557/-, treating cash deposits as turnover and estimating income at 2% and later 8% of credits. The CIT(A) deleted one addition but confirmed another.
Held
The Tribunal found that the CIT(A) passed the order without considering the assessee's submissions and the assessment was ex-parte. Therefore, the matter was remanded to the Assessing Officer for fresh adjudication.
Key Issues
Whether the CIT(A) order was passed without considering assessee's submissions and assessment was ex-parte, warranting a remand.
Sections Cited
144
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Income Tax Appellate Tribunal, Hyderabad ‘SMC’ Bench, Hyderabad
Before: SHRI INTURI RAMA RAO
(निर्धारण वर्ा/Assessment Year:2017-18) Shri Mubarak Baig Mogal, Income Tax Officer, Vs. Chitoor. Ward 1(1), Tirupati. PAN: AYJPM5864B (Appellant) (Respondent) निर्धाररती द्वधरध/Assessee by: SNSR Chinmai, Advocate. रधजस् व द्वधरध/Revenue by: Dr. Sachin Kumar, DR सुिवधई की तधरीख/Date of hearing: 06/10/2025 घोर्णध की तधरीख/Pronouncement: 10/10/2025 आदेश/ORDER This appeal filed by the assessee is directed against the order of the order of Addl/JCIT(A)-1, Pune [CIT(A)] dated 15.02.2024 for Assessment Year (AY) 2017-18.
Brief facts of the case are that the assessee is an individual deriving income from business. Thw Return of Income for the A.Y. 2017-18 was filed on 05.02.2018 declaring total income at Rs.4,62,760/-. The assessment was completed by the ITO, Ward 1(1), Tirupati on 19.12.2019 u/s. 144 of the Income Tax Act, 1961 (“the Act”) determining the total income at Rs.14,90,557/-. While doing so, the Assessing Officer treated the cash deposits in bank account as turnover of the business from online cash transfer and estimated the income at 2% of the total credits at Rs.6,89,71,996/- which works out to Rs.13,79,440/-. The Assessing Officer had estimated at 8% of the credits in the bank account at Rs.13,79,440/-.
Being aggrieved with the order of Assessing Officer, the assessee filed an appeal before the Ld. CIT(A) who vide impugned order directed the Assessing Officer to delete the addition of Rs.1,11,117/- and confirmed the addition of Rs.13,79,440/-.
Being aggrieved with the order of Ld. CIT(A), the assessee is in appeal before the Tribunal.
I have heard the rival submissions and perused the material available on record. I find that the impugned order passed by the Learned CIT(A) without considering the written submissions of the assessee made before him. I also find that the assessment order was also passed by the Assessing Officer exparte. In the circumstances, I am of the considered opinion that it is a fit case to remand the matter to Assessing Officer for fresh adjudication after affording a reasonable opportunity of hearing to the assessee, in accordance with law.
In the result, the appeal filed by the assessee is allowed for statistical purposes.