K.VIKRAMAN,DHARMAPURI vs. ITO WARD 1, DHARMAPURI

The assessee filed this appeal against the order of the Commissioner of Income Tax (Appeals)-Salem, in Appeal No.109/2017-18 dated 20.03.2019 for the AY 2010-11.

Brief facts of the case are that the assessee is a partner in M/s.Sri Vinayaga Aqua Minerals, a firm running water purifier plant and Bottling Plant filed his return of income for the AY 2010-11 on 21.06.2011, admitting a total income of Rs.3,02,800/-. The AO found that the assessee had made high value bank transactions to the tune of Rs.13,46,300/- during the financial year 2009-10, through his Savings Bank A/c in ICICI Bank. These transactions were not reflected in the return of income filed by the assessee for the AY 2010-11 and notice was issued u/s.148 and the same was served on the assessee on 30.03.2017. after considering the submissions made by the assessee, the AO concluded the assessment and made an addition of Rs.13,46,300/- and assessed at rs.16,49,100/-.

On being aggrieved, the assessee preferred an appeal before the Ld.CIT(A). The Ld.CIT(A) has issued hearing notice to the assessee but the assessee failed to appear before the Ld.CIT(A). Therefore, the Ld.CIT(A) passed an ex-parte order confirming the orders passed by the AO.

On being aggrieved, the assessee preferred an appeal before the Tribunal. The Ld.Counsel for the assessee submitted that due to unavoidable circumstances, the assessee was not able to substantiate the case of the assessee before the lower authorities and he pleaded for one more opportunity.

Per contra, the Ld.DR submitted that both the authorities have given sufficient opportunities to the assessee but there was no response from the assessee. Hence, the authorities below passed an ex-parte order.

We have heard both the parties, perused the materials available on record and gone through the orders of authorities below.

Admittedly, the AO had passed assessment order u/s.144 of the Act and the Ld.CIT(A) had also passed an ex-parte order. The contention of the assessee’s representative is that due to unavoidable circumstances, the assessee/his representative failed to appear before the authorities below. Considering the facts and circumstances of the assessee’s case, we are of the considered opinion that it is a fit case to grant one more opportunity to the assessee to substantiate its case before the AO.

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