NEERAJ JOLLY,MEERUT vs. ITO, WARD-2(1), MEERUT

Facts narrated by the revenue authorities are not disputed by both the parties, hence, the same are not repeated here for the sake of convenience.

At the time of hearing, Ld. Counsel for the assessee stated that the AO has completed the assessment u/s. 147/144 of the Income Tax Act, 1961 (In short “Act”) by passing an exarte order 07.12.2017 without giving the opportunity to the assessee to substantiate his case. He further stated that AO has not issued any notice u/s. 143(2) of the Act in spite of the fact that the assessee has filed his return of income for the assessment year in dispute on 30.3.2011 and paid the tax of Rs. 4,690/- on the income of Rs. 2,02,210/-. He has filed the copy of the RTI dated 20.5.2018 issued by the Central Information Commission /ITO, Ward 1(2)(1), Meerut as well as the copy of acknowledgement of the ITR in dispute in the office of the AO, Ward 2(1), Meerut with computation of income. Aggrieved by the assessment order dated 7.12.2017 assessee filed the appeal before the Ld. First Appellate Authority who vide his impugned order dated 7.5.2018 dismissed the appeal filed by the assesee without considering the issues including the non-issue of notice u/s. 143(2) of the Act as well as return of income filed by the Assessee. He further stated that the reasons dated 02.3.2017 recorded by the AO is also contrary to the law and facts from the case of the assessee and the assessment framed thereon is also liable to be cancelled, in view of various decisions rendered by the ITAT as well as the Hon’ble Jurisdictional High Court. Ld. Counsel for the assessee further stated that AO has completed the assessment u/s. 147/144 of the Act and the assessee has filed the Application under Rule 46A of the IT Rules and submitted the additional evidences before the Ld. CIT(A). He has filed the various documentary evidences before him in the shape of Paper Book containing pages 1-89 in which he has attached the copy of application under Rule 46A of the Income Tax Rules for submitting of additional evidence filed before CIT(A); copy of the written submission filed before CIT(A); copy of the assessment order of the appellant for AY 2010-11; copy of the Form 35 filed before CIT(A); copy of the processing sheet as pr the assessment records of the AO; copy of acknowledgement of return of income of the appellant for AY 2010-11; copy of the balance sheet, profit and loss account and ledger accounts filed before CIT(A) as additional evidencse and copy of bank statement of ICICI Bank of the appellant for FY 2009-10 (AY 2010-11) filed before the CIT(A) as additional evidence. He requested that in the interest of justice the issues in dispute may be set aside to the file of the AO for fresh adjudication and appreciation of all the evidences filed by the assessee for substantiating the claim of the assessee.

On the contrary, Ld. DR stated that the assessee remain non- cooperative before the AO as well as before the Ld. CIT(A). He further stated that assessee has not filed any evidence before the AO which was available with the assessee, therefore, Ld. CIT(A) has rightly rejected the application under Rule 46A and accordingly, requested that the appeal of the assessee may be dismissed.

I have heard both the parties and perused the records especially the order of the revenue authorities including the contentions of the application filed under Rule 46A of the IT Rules for admission of additional evidences before the Ld. CIT(A) alongwith evidences filed before the Ld. CIT(A) in the shape of Paper Book filed by the assessee containing pages 1-89 as mentioned above. I am of the view that reasons recorded by the AO for initiating the proceedings u/s. 148 of the Act and obtaining the approval from the Competent Authority, information received by the assessee under RTI Act dated 20.5.2018 in which the Competent Authority has stated that the assessee has filed the return of income on 30.3.2011 depositing the tax of Rs. 4690/- on the income of Rs. 2,02,210/- for the assessment year 2010-11 which is in dispute. The assessee has also shown the ITR acknowledgement; ITR filed in Ward no. 2(1) Meerut for AY 2010-11; assessee also filed copy of computation of income for the AY 2010-11 ending year 31.3.2010. Keeping in view of the aforesaid evidences filed by the assessee before me as well as before the Ld. CIT(A), I am of the considered opinion that in the interest of justice the issues in dispute require thorough consideration / adjudication at the level of the Assessing Officer. Therefore, I set aside the orders passed by the revenue authorities and remit back the issues in dispute to the file of the AO to decide the same afresh, after giving adequate opportunity of being heard to the assessee. However, assessee is at liberty to file any evidences for substantiating his claim before the AO and fully cooperate in the assessment proceedings before the AO and did not take any unnecessary adjournment.

In the result, the Appeal of the Assessee is allowed for statistical purposes.