SRI SYED REHAMAN, PROP: M/S. B K BEEDI WORKS,HARIHAR vs. INCOME TAX OFFICER, WARD-3, DAVANGERE

This is an appeal by the assessee against the order of the CIT (A), Davangere, dt.22.02.2017, for the assessment year 2010-11. On the following effective ground :

It was submitted by the ld. AR that there was no occasion for the AO to invoke section under section 144 of the Act and make addition of Rs.51,60,000 into SB account in Corporation Bank, Harihara. Assessee had drawn our attention to letter dated 17.02.2016 of the AO and response dated 04.03.2016, in the remand proceedings before the CIT.

On the basis of these letters and order of CIT appeals at page 4, it was submitted that the AO has not considered reply dated 04.03.2016, and in the appeal CIT(A) had wrongly confirmed the order of AO.

Per contra the Ld. DR had submitted that the action of the lower authorities were in accordance with law and no interference is called for.

We have heard the rival contentions and perused the material on record. In our view both the lower authorities had not given sufficient time to reply to the notice under section 144 and further both authorities had failed to take into account the submission dated. 04.03.2016. In view thereof the entire appeal is restored back to the file of CIT(A) for denovo examination of the submissions of the assessee , after giving due opportunity of hearing to the assessee and consider the explanation given in response to invocation of section 144. Needless to say there is no undue ITA.1366/Bang/2017 Page - 3 adjudication on merit of claim of the assessee by the tribunal and the CIT(A) may call for remand report if assessee filed any document before the AO and thereafter pass a reasoned speaking order, after affording the opportunity to the assessee .

In the result appeal of the assessee is allowed for statistical purpose.