M. KUTBUDEEN,CHENNAI vs. ITO, CHENNAI

The assessee has raised the following grounds in his appeal:-

The order of the Hon’ble CIT(A) is against the principle of natural justice.

2. The Hon’ble CIT(A) is not justified din not affording opportunities to your appellant to produce evidences on various counts. 3. The Hon’ble CIT(A) is not justified in upholding the action of the assessing officer for invocation of section 40a(ia) to transactions relating to purchase of goods. 4. The Hon’ble CIT(A) is not justified in not seeking evidence for the rental payment relating to the third premise. 5. On the whole the Hon’ble CIT(A) is not justified in adopting an indifferent attitude similar to that of the assessing officer while passing the order. 6. With these and such other grounds that may be adduced at the time of hearing your Appellant prays for the relief sought.

The brief facts of the case are that the assessee is an individual engaged in the business as dealer in bolts nuts, washers and general hardware suppliers, filed his return of income for the assessment year 2012-13 electronically on 28.09.2012 admitting total income of Rs.8,60,230/-. The case was selected for scrutiny under CASS and notice U/s.143(2) of the Act was issued. Finally assessment order was passed U/s.143(3) of the Act on 31.03.2015 wherein the Ld.AO made several additions. On appeal, the Ld.CIT(A) granted partial relief to the assessee.

At the outset, the Ld.AR submitted that one more opportunity may be granted to the assessee to represent his case before the Ld.AO because the assessee now has sufficient materials to justify his claim. He further submitted that the assessee is engaged in petty business and the additions made by the Ld.AO are too harsh particularly when he has sufficient materials to justify his claim of expenditure. The Ld.DR on the other hand vehemently opposed to the submissions of the Ld.AR and pleaded that the order of the Ld.CIT(A) may be sustained.

We have heard the rival submissions and perused the materials on record. Though we do not appreciate the arguments advanced by the Ld.AR, considering the financial constrains of the assessee, in the interest of justice, we hereby remit the matter back to the Ld.AO for de novo consideration, with the direction to admit any evidence produced by the Ld.AR/ assessee in order to establish their claim and thereafter pass appropriate order in accordance with merit and law. We also cautioned the Ld.AR/ assessee to promptly cooperate before the Ld.Revenue authorities in their proceedings failing which the Ld.Revenue authorities are at liberty to pass appropriate order in accordance with merit and law based on the materials on record.

In the result, the appeal filed by the assessee is allowed for statistical purposes as indicated herein above.