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Income Tax Appellate Tribunal, “A” BENCH, MUMBAI
Before: SHRI PRAMOD KUMAR & SHRI PAVAN KUMAR GADALE
PER PAVAN KUMAR GADALE - JM:
The assessee has filed an appeal against the order of Commissioner of Income Tax (Appeals) -4, Mumbai passed u/s. 144 r.w.s 147 and 250 of the Income Tax Act, 1961.
Brief facts of the case are that, the assessee is engaged in the business of dealing in gift articles, novelties etc and filed the return of income with total
Ankit Jitendra Jhaveri, Mumbai. - 2 - income of Rs Nil on 10.08.2009. The Assessing officer completed the assessment applying the provisions of Sec144 of the Act, being Best judgment Assessment with addition on account of non genuine purchases estimated @ 15% as profit on aforesaid purchases and passed the order u/s 144 r.w.s 147 of the Act dated 27.02.2015. On appeal, the LdCIT(A) has restricted the addition percentage to12.5% and partly allowed the appeal. Aggrieved by the LdCIT(A)order, the assessee has filed an appeal with the Hon’ble Tribunal.
At the time of hearing Ld. AR, submitted that, the assessment was completed u/s 144 r.w.s 147 of the Act and no proper notice was issued on the address of the assessee. The LdCIT(A) has restricted addition @12.5% as against 15% estimated by the Assessing officer. Further, the assessee was not provided opportunity to file evidences, due to non receipt of notices issued by the Assessing authority. In the Appellate proceedings, the assessee has filed the additional grounds of appeal and written submissions. The LdCIT(A) has not considered the additional grounds of appeal, which goes to the roots
Ankit Jitendra Jhaveri, Mumbai. - 3 - of the case. Therefore prayed for an opportunity before the CIT(A) to substantiate the case.
Contra, the DR supported the orders of the CIT(A).
We heard the rival submissions and perused the material on record. Prima-facie, we find that the Assessing officer has passed the assessment u/s 144 r.w.s 147 of the Act applying the provisions of Best judgment as the assessee could not substantiate the case with explanations and Evidences. The LdAR submitted that no opportunity was provided to the assessee to substantiate the case and LdCIT(A) has overlooked the additional grounds of Appeal raised by the assessee. We considering the principles of natural justice shall provide one more opportunity of hearing to the assessee to substantiate the case. Accordingly, we restore the disputed issues to the file of the Ld CIT(A) to adjudicate afresh and pass a speaking order and the assessee shall cooperate in submitting the information for early disposal of the appeal, and we allow the grounds of appeal of the assessee for statistical purposes.
Ankit Jitendra Jhaveri, Mumbai. - 4 - 6. In the result the appeal filed by the assessee is allowed for statistical purposes.
Order pronounced in the open court on 17.12.2020