PARIMALA SHYLAJA RUDRAPPA,BANGALORE vs. INCOME-TAX OFFICER, WARD-3(2)(1), BANGALORE, BANGALORE

In the instant case, the Assessee being an individual during the year under consideration was carrying on the business of Bus Ticket Booking, Airlines Ticket Booking, Money transfer services of Suvidha point retailers etc. and collecting cash from various customers and providing the respective services. During the assessment year under consideration declared a total income of Rs.3,14,160/- under the head ‘income from business or profession’ by filing return of income on 17.02.2018 which was processed by CPC and subsequently, selected for limited scrutiny through CASS for the reason ‘cash deposits during the year’. Accordingly, statutory notices were issued to the Assessee, in response to which, the Assessee furnished the requisite details as called for.

The Assessee being aggrieved, challenged the aforesaid addition before the Ld. Commissioner, who though afforded various opportunities for furnishing the submissions, however the Assessee in response to the notices, neither filed any reply nor any documents before the Ld. Commissioner and therefore, by Ld. Commissioner by observing “that the facts mentioned in Form No.35 cannot be considered in the absence of any supporting documentary evidence and submissions, the Assessee has also failed to bring anything on record to support its grounds of appeal and to counter the additions made by the AO.” ultimately affirmed the said addition by dismissing the appeal of the Assessee.

The Assessee being aggrieved is in appeal before us.

We have given thoughtful consideration to the peculiar facts and circumstances of the case and observe that though various opportunities have been given to the Assessee for furnishing requisite submissions/response, however, the Assessee failed to respond the same, therefore, in the constrained circumstances, the Ld. Commissioner dismissed the appeal of the Assessee and thus the Assessee do not deserve any leniency or relief as sought for in this appeal. However, considering the peculiar facts and circumstances of the case, as the Ld. Commissioner in the absence of relevant reply/documents failed to decide the issue in its right perspective and ultimately affirmed the said addition without giving independent findings, hence, for the just decision of the case and for substantial justice, we are inclined to remand the instant case to the file of the Ld. Commissioner for decision afresh, suffice to say, by affording reasonable opportunity to the Assessee to substantiate its claim. The Assessee is also directed to appear before the Ld. Commissioner if necessitates and to file the relevant reply/documents as would be essential and needed by the Ld. Commissioner. In case of further default, the Assessee shall not be entitled for any leniency.

In the result, appeal filed by the Assessee stands allowed for statistical purposes.