BARUN KUMAR CHAND,BHADRAK vs. THE INCOME TAX OFFICER, BHADRAK WARD, BHADRAK, BHADRAK

Brief facts of the case are that the assessee is an individual, filed his return of income for the assessment year 2016-17 in 29.7.2016 disclosing total income of Rs.2,66,228.00 under the head “income from other sources”. It was unearthed from the investigation wing of the department that the assessee has made substantial cash deposit of Rs.37,33,000/- and has not disclosed the income amounting to Rs.9,42,855/- and investment of Rs.2,58,57,693/-. The case was reopened by issuance of notice u/s.148 of the Act dated 31.3.2021 after recording the reasons for reopening of the assessment. In response to notice u/s.148 of the Act, the assessee has filed. However, in response to notice u/s.143(2) and also notice u/s.142(1) of the act, there was no compliance from the side of the assessee. Therefore, the Assessing Officer completed the assessment u/s.147 r.w.s 144 of the Act, determining the assessed income at Rs.3,07,99,776/-.

In the first appeal also, despite giving several opportunities, no explanation and submissions were filed by the assessee. Therefore, the ld CIT(A) had no option but to confirm the addition made by the Assessing Officer.

On being aggrieved, the assessee preferred an appeal before the ITAT.

At the time of hearing, ld. Counsel for the assessee prayed before the Bench that the impugned order be set aside and remitted back to the file of ld. AO for deciding it afresh as the AO has passed order u/s.147/144 of the Act.

In reply, ld CIT DR brought our notice that the assessee did not produce the relevant documents as asked by the ld. Assessing Officer during the assessment proceedings despite service of notice u/s.143(2) and 142(1) of the Act.. Therefore, the ld. Assessing Officer passed the assessment order assessing the taxable income at 3,07,99,780/-. Thereafter the assessee preferred an appeal before the ld. CIT(Appeals). The ld. CIT(Appeals) has given many opportunities to the assessee and the assessee neither filed written submission nor any evidence before the ld. CIT(Appeals). Therefore, he pleaded to uphold the order passed by the ld. CIT(Appeals).

We have heard the rival contentions and perused the material available on record. A perusal of the assessment order shows that the assessment has been passed u/s.147 r.w.s. 144 of the Act due to non- compliance of notice issued by the AO. Similarly, before the ld CIT(A), there was no response to the notices to substantiate the claim. However,

Since, we have restored the quantum addition to the file of the Assessing officer for fresh adjudication, the penalty order passed u/s.271(1)(c) of the Act is also remitted back to the file of the AO for fresh adjudication after passing the quantum proceedings as per law.

In the result, appeals of the assessee stand allowed for statistical purposes.