ALHIND TRAVEL PORTAL LLP,KOZHIKODE vs. ITO, WARD 1(1), KOZHIKODE

Brief facts of the case are that the appellant is an LLP duly constituted under the Partnership Act. It is engaged in the business of sale of air tickets. The return of income for AY 2018-19 was filed on 31.12.2018 disclosing total income of Rs. 28,98,230/-. Against the said return of income, the assessment was completed by the Alhind Travel Portal LLP National e-Assessment Centre, Delhi (hereinafter called "the AO") vide order dated 06.04.2021 passed u/s. 143(3) r.w.s. 143(3A) and 143(3B) of the Income Tax Act, 1961 (the Act) at total income of Rs. 3,17,74,277/-. While doing so, the AO made addition of Rs. 2,88,76,047/- being 7.35% of the deposits in the bank account of Rs. 39,28,71,394/- treating the deposits in the bank account as business receipts.

Being aggrieved, an appeal was filed before the CIT(A) contending that there was no basis for estimating the profit at 3.75% by treating the cash deposit of Rs. 39,28,71,394/- as business receipt of the appellant and also contended that the entire cash deposits were made out of the proceeds of sale of air tickets and duly recorded in the books of account. However, the CIT(A), without addressing the written submissions filed by the appellant, merely confirmed the action of the AO.

Being aggrieved, the appellant is in appeal before this Tribunal in the present appeal.

The learned A.R. contended that the CIT(A) had not disposed all the ground of appeal raised before him but simply confirmed the action of the AO without passing a speaking order. Therefore, the order of the CIT(A) be set aside and remanded back to the file of the CIT(A) for de novo disposal in accordance with law after affording reasonable opportunity of hearing to the appellant.

We have heard the rival contentions and perused the material available on record. At the outset, we find that the AO had estimated the profit by treating the cash deposits as business receipts of the appellant and applied the GP at 7.35%. The appellant had challenged the action of the AO on several counts. However, the CIT(A), without addressing all the submissions and grounds of appeal raised by the appellant merely confirmed the action of the AO by passing a cryptic order. Therefore, in the interest of justice the matter is restored to the file of the CIT(A) for fresh disposal of the appeal in accordance with law after affording reasonable opportunity of hearing to the appellant.

In the result, the appeal filed by the assessee stands partly allowed for statistical purposes.