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Income Tax Appellate Tribunal, BANGALORE BENCH ‘ C ’
Before: SHRI VIJAY PAL RAO & SHRI INTURI RAMA RAO
Per Shri Vijay Pal Rao, J.M. : This appeal by the assessee is directed against the order dt.29.02.2016 of Commissioner of Income Tax (Appeals) for the Assessment Year 2010-11.
The assessee has raised the following grounds :
3. The assessee is an individual and engaged in the business of granites. While completing the assessment under Section 143(3) on 24.3.2013, the Assessing Officer made addition on account of interest income on previous year Fixed Deposit and credit card payment based on AIR information. Both these additions were made by the Assessing Officer for want of necessary details and evidence. The assessee challenged the action of the Assessing Officer before the CIT (Appeals) but despite the notices issued by the CIT (Appeals) none has appeared CIT (Appeals) and consequently the impugned order was passed ex-parte.
4. Before us, the learned Authorised Representative of the assessee has submitted that the Assessing Officer has made the addition for want of necessary details and explanation. Before the CIT (Appeals) due to personal difficulty and unavoidable circumstances, the assessee could not cause his presence either in person or through a representative therefore the appeal of the assessee was dismissed by the CIT (Appeals) due to the reason that the assessee could not explain his case. The learned Authorised Representative has pleaded that the additions are based on AIR information and the necessary explanation and details are required to be examined. Thus the learned Authorised Representative has pleaded that one more opportunity may be granted to the assessee to produce the relevant details and evidence on these two issues.
On the other hand, the learned Departmental Representative has forcefully contended that the Assessing Officer as well as CIT (Appeals) granted sufficient opportunity to the assessee. The conduct of the assessee shows that the assessee has not co-operated with the Assessing Officer and did not even bother to appear before the CIT (Appeals). He has relied upon the orders of the authorities below.
We have considered the rival submissions and relevant material on record. We find that the assessee filed his return of income on 13.10.2010 declaring an income of Rs.10,33,433. The income comprising of income from business, income from other sources, etc. The Assessing
Officer while completing the assessment made two additions on account of interest on previous year fixed deposit as well as credit card payment. We find that the Assessing Officer made the addition for want of necessary details and evidence. Though the assessee explained the source of credit card payment as agriculture income and payments from sister concern which were not accepted by the Assessing Officer for want of the supporting evidence. Before the CIT (Appeals) despite various notices, the assessee kept on seeking adjournment and therefore the ld. AR of the assessee did not argue before the CIT (Appeals). The CIT (Appeals) has dismissed the appeal of the assessee by recording the reason in para 2 as under :- “2. On 29/02/2016, once again, no one appeared. Also, no written submissions have been filed till date. Since there has been repeatedly no compliance to the notices issued for hearing of the appeal, it is clear that the appellant is unable to substantiate the grounds raised by him on the additions made by the Assessing Officer. Hence it is presumed that the appellant has nothing further to say or produce in his favour with regard to the appeal pending before me. Under such facts, I have no reasons to interfere with the findings of the Assessing Officer.”
Thus it is clear that the CIT (Appeals) has not gone into the merits of the issue but confirmed the finding of the Assessing Officer because the assessee has not presented its case. In view of the facts and circumstances of the case as well as in the interest of justice, we grant one more opportunity to the assessee to present its case and file the necessary details and evidences. Accordingly, we set aside this matter to the record of the Assessing Officer for affording one more opportunity to the assessee to file the necessary details. 7. In the result, the assessee's appeal is allowed for statistical purposes Order pronounced in the open court on the 26th day of Oct., 2016.