LINGARAJ SAHOO,BHUBANPUR vs. INCOME TAX OFFICER, KHURDA WARD , KHURDA

Facts of the case are that the assessee is an individual derives income from manufacturing & sale of black stone chips in the proprietorship concern M/s. Mahima Stone Crusher. The assessee has filed his return of income on 30.9.2015 disclosing total income of Rs.5,06,960/-. The Assessing Officer issued several notices to the assessee to explain the capital introduction of Rs.1,67,93,615/- supported by evidence but the assessee failed to explain the same despite several opportunities. Therefore, the Assessing Officer treated the capital introduction of Rs.1,67,93,615/- as unexplained investment in the hands of the assessee and added to the total income. Being aggrieved, the assessee carried the matter in appeal before the ld CIT(A), who dismissed the appeal, as the assessee could not substantiate his case by furnishing necessary documents and submissions. Hence, the assessee is in appeal before us.

At the time of hearing, ld. Counsel for the assessee stated that the ld CIT(A) has dismissed the appeal without giving adequate opportunity of hearing to the assessee. He prayed before the Bench that the impugned order be set aside and remitted back to the file of ld. CIT(Appeals) for deciding it afresh.

On the other hand, ld Sr DR supported the orders of the lower authorities.

We have heard the rival contentions and perused the material available on record. A perusal of the impugned order clearly shows that as there was no response to the notices to substantiate the claim with documentary evidences and submissions, ld CIT(A) confirmed the addition made by the AO. Before us, ld AR undertakes that the assessee will cooperate the proceedings, if the matter is restored back to the file of the Assessing Officer. Considering the facts and circumstances of the case, we are inclined to set aside the order passed by the ld. CIT(Appeals) in order to meet the principle of natural justice, and remit the matter back to the file of the ld CIT(A) with a direction to provide one more opportunity of being heard to the assessee. At the same breath, we also hereby caution the assessee to promptly co-operate with the proceedings before the CIT(A) failing which the ld CIT(A) shall be at liberty to pass appropriate order in accordance with law and merits based on the materials available on the record. Thus, the grounds raised by the assessee are allowed for statistical purposes.

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