SELVA GANAPATHY,,CHENNAI vs. ITO, NCW - 1 (1),, CHENNAI

The assessee filed this appeal against the order of the Commissioner of Income Tax (Appeals)-2, Chennai in ITA

The assessee, Mr.Selva Ganapathy, is engaged in the business of trading in firewood and charcoal. While completing the assessment for the assessment year 2015-16, the Assessing Officer completed the assessment on 21.12.2017 and made an addition of ₹.48,55,000/- towards unexplained investment under Section 69 of the Act.

It was submitted by Ld. A.R. that the Assessing Officer himself completed the assessment without giving adequate opportunity to the assessee as he has issued a show-cause notice, dated 14.12.2017 and completed the assessment on 21.12.2017. Further, Ld. A.R. submitted that on appeal before the learned CIT(A), the learned CIT(A), has, unfortunately, concluded the appellate order without giving a clear finding. In the facts and circumstances of the case, the Ld. A.R. pleaded before us that the assessee may be given reasonable opportunity, so that the merits of the case can be explained with relevant material before the appropriate authority.

Per contra, the Ld. D.R. strongly supported the orders of the lower authorities.

We have considered the rival submissions and perused the material available on record. We find that the assessee has not been given effective opportunity of being heard, on the issues identified by the Assessing Officer. In the facts and circumstances of the case, we deem it fit to remit the issues to the file of A.O. for fresh examination and hence, set aside the orders of both the authorities below. The A.O., after giving effective opportunity of being heard to the assessee, shall pass an appropriate order in accordance with law.

In the result, the appeal of assessee is allowed for statistical purposes.