REKHA MUSADDY,CHENNAI vs. ITO, NCW-1(6), CHENNAI

The assessee is an individual and engaged in the business of trading of earth moving equipments and spares and iron and steel in the name of Ayush Earthmovers. The A.O has completed the assessment u/s. 143(3) of the Act estimating the annual net value of property assessed at Rs. 34,80,000/-, addition on unsecured loans u/s. 68 of the Act of Rs. 15,00,000/-, unexplained credits of Rs. 2,50,000/- and interest on unsecured loans of Rs. 4,28,725/-, and interest disallowance of Rs. 39,04,542/-. Aggrieved, the assessee preferred appeal before Ld. CIT(A), the Ld. CIT(A) has dismissed the appeal ex- parte without discussing the case on merits.

The Ld. Authorized Representative (A.R) of the assessee before us has submitted the Ld. CIT(A) has dismissed the appeal without discussing the case on merits and without providing sufficient opportunity to the assessee and requested to provide one more opportunity to substantiate his case.

The Ld. Departmental Representative (DR), on the other hand, has relied on the orders of lower authorities.

We have heard the rival submissions, and perused the materials available on record. The Ld. CIT(A) had dismissed the appeal without discussing the case on merits. The Ld. CIT(A) has stated that the assessee is not in a position to submit documents in support of his case. The Ld. AR before us has submitted that all the material available to substantiate their claim and therefore, one more opportunity should be provided to substantiate her case in the interest of justice. We are of the opinion that keeping in view the principles of natural justice, the assessee be provided with another opportunity of hearing to substantiate his case before the A.O. Accordingly, we set aside the orders passed by the lower authorities and restore the matter back to the file of the A.O for denovo adjudication after giving reasonable opportunity to the assessee. We also direct the assessee to appear before the A.O on the date of hearing without fail. In view of the above, the appeal filed by the assessee is allowed for statistical purposes only.

In the result, the appeal filed by the assessee is allowed for statistical purposes Order pronounced on 20th December, 2024.