ACHAIBARPRASAD NANDAN VERMA L.R. OF VARMA MUNI (LATE),BANGALORE vs. INCOME TAX OFFICER, WARD - 1(2)(5), BANGALORE

O R D E R

Per Shri A.K. Garodia, Accountant Member

by the assessee are as under. Tax effect relating to each Ground of Grounds of Appeal appeal The assesse has barrowed Rs. 149 Lacks by SBI RTGS from her spouse and her spouse by mortgage his property has barrowed 171 Lacks from TATA Housing Finance Ltd.

1. The learned Assessing Officer is not Rs.49,91,174/- justified in treating the entire loan outstanding of Rs. 1,46,42.151/- as unexplained loan creditor and added as business Income. The learned Assessing Officer erred in 2. calculating interest U/s 234A, 234B and Rs.17,82,920/- 234C of the Income Tax Act 1961. Total tax effect (see note below) Rs. 67,74,094/- Page 2 of 3

3. At the very outset, it was submitted by ld. AR of assessee that the impugned order of ld. CIT(A) is ex-parte qua the assessee. He pointed out that notices of hearing issued by ld. CIT(A) were not served on the assessee. He pointed out that it is noted by ld. CIT(A) also in the impugned order that the notices issued by him had come back unserved with the remark of postal department that the “addressee not known”. He submitted that there is no fault of assessee in this because on the same address, the notices issued by the Tribunal were served on the assessee. He submitted that in the interest of justice, the matter may be restored back to the file of ld. CIT(A) for fresh decision after providing reasonable opportunity of being heard to assessee. The ld. DR of revenue supported the order of ld. CIT(A).

4. We have considered the rival submissions. In view of the facts noted above that the notice issue by the Tribunal on the same address was duly served on the assessee and in the interest of justice, we feel it proper to restore back the matter to the file of ld. CIT(A) for fresh decision. We order accordingly. We set aside the order of ld. CIT(A) and restore the matter back to the file of ld. CIT(A) for fresh decision after providing adequate opportunity of being heard to both sides. In view of this decision, no adjudication on merit is called for at the present stage.

5. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the open court on the date mentioned on the caption page.