K.V. NAGARAJ,HOSPET vs. DCIT, BANGALORE

At the very outset, it was submitted by the ld. AR of the assessee that in case of Shri K.N.Nagaraj, none-appeared on behalf of the assessee before the ld. CIT(A) and although, in the case of Shri K.N.Nandini, the assessee herself appeared before the ld. CIT(A), but no effective compliance could be made by her. It was also submitted that before the AO also, in both the cases, proper compliance could not be made because, Shri K.N.Nagaraj, was very much disturbed due to the search and allegation regarding illegal mining and was also put behind bars afterwards and therefore, in the interest of justice, the entire matter in both the cases may be restored to the file of the AO for a fresh decision after providing adequate opportunity of being heard to both these assessees.

The ld. DR of the revenue submitted that various opportunities were provided to both the assessees by the AO as well as by the ld. CIT(A) and therefore, no further opportunity should be provided.

We have considered the rival submissions on this aspect and before going into the merits of the additions made in these two cases in various years, we examine this aspect as to whether the matter should be restored back to the file of the AO for a fresh decision or not. Considering the facts of the present case, we are inclined to restore the entire matter back to the file of the AO for a fresh decision in view of the principle of natural justice and therefore, we set aside the order of the ld. CIT(A) in both these cases in all years and restore the entire matter back to the to the file of respective AO in both these cases in all the years involved in various appeals before us.

In view of our decision above, various grounds raised by the assessee in respect of various additions, do not called for any adjudication at this stage.

In the result, all these appeals of the assessees stand allowed for statistical purposes.