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Income Tax Appellate Tribunal, “D” BENCH : KOLKATA
Before: Hon’ble Shri Aby. T. Varkey, JM & Shri M.Balaganesh, AM ]
ORDER Per M.Balaganesh, AM
This appeal by the Assessee arises out of the order of the Commissioner of Income Tax(Appeals)-Durgapur [in short the Ld. CIT(A)] in appeal No. 181/CIT(A)/DGP/2011-12 dated 13.10.2014 against the order passed by the ITO, Ward-1(3), Durgapur [in short the Ld. AO] u/s 143(3) of the Income Tax Act, 1961 [hereinafter referred to as the ‘Act’] dated 30.12.2011 for the assessment year 2009-10.
The assessee had raised the following grounds of appeal :-
1. For that the order of the AO is arbitrary, excessive and hence bad in law.
2. For that on the facts of the case the AO was not legally justified in adding back an amount of Rs. 3,27,778/- on A/c of unexplained money in bank, when the source of the said deposits in bank are fully explainable, and the same may please be deleted.
3. For that on the facts of the case the AO was not legally justified in adding back an amount of Rs. 4,000/- on a/c of unexplained deposit in CAMS, when the
4. For that the AO acted illegally in demanding regular books of accounts from the appellant, when the appellant was not required to maintain books u/s 44AA, because the appellants business is covered u/s 44AF, and the profits disclosed u/s 44AF is DEEMED to be the income from business.
For that the appellant craves leave to add, alter, amend any further grounds of appeal before or at the time of hearing.
3. The brief facts of this appeal is that the assessee is an individual and had filed his return of income for the Asst Year 2009-10 on 13.7.2010 declaring total income of Rs 3,98,000/-. The ld AO in the course of assessment proceedings directed the assessee to produce the books of accounts. In response to this, the assessee replied that the income has been offered u/s 44AE and 44AF of the Act and hence he is not required to maintain any books of accounts. The ld AO however observed that the assessee had filled up those columns in the return of income relevant to maintenance of books of accounts and accordingly insisted for production of books of accounts before him. Later the assessment was completed u/s 143(3) of the Act on 30.12.2011 determining total income at Rs 7,29,778/-. In the said assessment, the following additions were made :-
Unexplained bank balances - Rs 3,27,778/- Unexplained Investment - Rs 4,000/-
The assessee agitated the additions before the ld CITA. Before the ld CITA , none appeared on behalf of the assessee despite giving several opportunities and accordingly the ld CITA dismissed the appeal ex parte . Aggrieved, the assessee is in appeal before us.
3 Lakshmi Kanta Kesh A.Yr.2009-10 5. We have heard the rival submissions. The ld AR before us prayed for one more opportunity to be afforded to the assessee as the additions has been sustained by the ld CITA without any basis and more so the additions were made by the ld AO without proper reasons. We find that the additions has been made mainly on the ground that no details were submitted by the assessee before the ld AO. The assessee had not substantiated his contentions before the ld CITA. We find that the ld CITA had dismissed the appeal ex parte without hearing the assessee. Hence in the interest of justice and fair play, we deem it fit and appropriate, to remand this appeal to the file of the ld CITA for denovo adjudication of the grounds raised before it on merits and decide the appeal afresh in accordance with law. Accordingly the grounds raised by the assessee are allowed for statistical purposes.
In the result, the appeal of the assessee is allowed for statistical purposes.
Order pronounced in the Court on 17.11.2017