BIJENDRA KUMAR,UTTAR PRADESH vs. ITO, SHAMLI

Brief facts of the case are that the Assessing Officer, on the basis of AIR information, noticed that the assessee had deposited Rs.10,11,050/- in his Savings Bank Account during the previous year i.e. 2009-10 and, accordingly, query letter was issued to the assessee. In compliance to the notice, the assessee appeared and filed adjournment application and requested to grant more time for compliance which was granted by Assessing Officer. Subsequently none appeared and, therefore, notice u/s 148 was issued to the assessee to file return of income. The assessee filed return of income declaring total income of Rs.1,57,700/-; the Assessing Officer passed assessment order u/s 147/144 of the Act determining the total income at Rs.10,11,050/- after making an addition of Rs.8,53,350/-. Ld. CIT(A) dismissed the assessee’s appeal.

Ld. counsel for the assessee pointed out that the assessment order has been passed for assessment year 2009-10 whereas the deposits, in the bank, were during the previous year 2009-10. He, therefore, submitted that the matter may be restored back to the file of Assessing Officer for proper appreciation of facts. Ld. DR relied on the order of CIT(A).

I have considered the submissions of both the parties and perused the record of the case. Admittedly, the Assessing Officer himself in the assessment order has referred to the AIR information relating to previous year 2009-10 and, therefore, the addition could be made only in assessment year 2010-11. Since the assessment order has been passed u/s 144, therefore, it would be in the interest of justice to restore the matter back to the file of Assessing Officer for re-marshalling the correct facts.

In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open court on this 06th day of February, 2017.