RAJENDRA PRASAD GUPTA,JAJPUR vs. ITO, CUTTACK

Brief facts of the case are that the assessee is engaged in the business of trading of FMCG products like edible oil, biscuit, tea etc. and filed the return of income for the assessment year 2011-2012 on 20.09.2011 with total income of Rs.5,95,010/- and the return of income was processed u/s.143(1) of the Act and subsequently the case was selected for scrutiny under CASS and notice u/s.143(2) & 142(1) were 2 duly served on the assessee. There was no compliance by the assessee, hence, the AO issued another notice u/s.142(1) calling assessee’s books of account and explanations about the sources of the cash deposits. As the assessee has not responded the AO issued notice u/s.133(6) of the Act to the assessee’s banks and called for the information. The AO dealt on the deposits by the assessee in the bank accounts and observed that the assessee being a dealer of Hindustan Lever Products and others has not submitted the entire business receipts for income tax purpose and on the assumption of suppression of business receipts, made an addition of gross profit at 3% Rs.13,75,121/- on unaccounted sales of Rs.4,58,37,381/-. Similarly, the AO also made addition of unaccounted business investments of Rs.24,14,766/- as the assessee has not produced the books of accounts, and the AO was deprived the verification of accounts. The AO considering the circumstances of non-submission of information by the assessee has estimated the net profit at 1% on gross profit Rs.8,05,883/- and the AO also found that the assessee has made investments in mutual funds and since the assessee has failed to submit the details, the AO estimated income @ 20% and worked out to Rs.47,779/- and the AO observed that as the assessee has claimed deduction u/s.80C under Chapter VIA of the Act and no evidence was produced, in respect of deduction, therefore, AO denied the claim under Chapter VIA and assessed the total income at Rs.66,81,150/- and passed the order u/s.144 of the Act dated 20.02.2014. 3 4. Aggrieved by the order of AO, the assessee has filed an appeal with the CIT(A). In the appellate proceedings the CIT(A) observed that the assessment was best judgment assessment and considered the findings of the AO on various statements. Before CIT(A) the assessee has filed written submissions supporting the facts of the case which were not provided in the assessment proceedings. The ld. CIT(A) has dealt on disputed issues at para 2 to 4 of the order and observed that the assessee has not submitted the details nor produced any evidence in respect of claims, and the ld. CIT(A) concord with the findings of AO and dismissed the assessee’s appeal.

Aggrieved by the order of CIT(A), the assessee has filed an appeal before the Tribunal.

Before us, ld. AR argued that the CIT(A) has erred in ignoring the written submissions filed by the assessee and no proper opportunity was provided before disposal of the appeal and the assessee has the evidences to support the case before the lower authorities and the ld. AR has argued on the above subject matter. Contra, ld. DR relied on the orders of ld. CIT(A) and opposed to the submissions of ld.AR.

We have heard the rival submissions and perused the material on record. The sole substantive ground argued by the ld. AR that assessee has filed written submissions in the appellate proceedings along with the evidences which the ld. CIT(A) has overlooked these facts and dismissed the appeal of the assessee with the observations that the assessee has not made any attempt to produce the evidence against the findings of AO, whereas ld. AR vehemently argued that the assessee has substantial

In the result, appeal of the assessee is allowed for statistical purposes. Order pronounced in the open court on this 07/11/2017. (N. S. SAINI) (PAVAN KUMAR GADALE) ऱेखा सदस्य / ACCOUNTANT MEMBER न्यानयक सदस्य / JUDICIAL MEMBER कटक Cuttack; ददनांक Dated 07/11/2017 प्र.कु.मि/PKM, Senior Private Secretary आदेश की प्रनिलऱपप अग्रेपषि/Copy of the Order forwarded to : 1. अपीलाथी / The Appellant- Rajendra Prasad Gupta, Near Axis Bank, Bank Street, Jajpur Road, District : Jajpur 2. प्रत्यथी / The Respondent- ITO, Ward-1(2), Cuttack 3. आयकर आयुक्त(अपील) / The CIT(A), आयकर आयुक्त / CIT 4. निभागीय प्रनतनिनर्, आयकर अपीलीय अनर्करण, कटक / DR, ITAT, Cuttack 5. गार्ड फाईऱ / Guard file. 6. 5 सत्यापपत प्रतत ////