SATENDRA PRASAD,BARIPADA vs. DCIT, BALASORE

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ITA 306/CTK/2015Status: DisposedITAT Cuttack19 September 2017AY 2011-124 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal found that the CIT(A) had not dealt with the merits of the case and had dismissed the appeal on the ground of refusal. The Tribunal granted the assessee one more opportunity to present their case before the CIT(A).

What were the facts?

The assessee, a civil contractor, filed an appeal against the CIT(A)'s order dismissing their appeal. The AO had made an addition of Rs. 27,14,378/- due to the assessee's failure to substantiate purchases and identify creditors.

What were the issues?

Whether the CIT(A) erred in dismissing the appeal without adjudicating on the merits of the addition made by the AO. Whether the assessee should be granted an opportunity to present their case before the appellate authority.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 250,Section 143(1),Section 142(1)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, CUTTACK BENCH CUTTACK

Before: SHRI N.S.SAINI, AM & SHRI PAVAN KUMAR GADALE, JM

Hearing: 18/09/2017Pronounced: 19/09/2017

Per Shri Pavan Kumar Gadale, JM: The assessee has filed an appeal against the order of CIT(A), Cuttack, in Appeal No.0674/2013-14, dated 27.02.2015, passed u/s.143(3)/250 of the Income Tax Act, 1961 for the assessment year 2011-2012,

2.

The only substantive ground raised by the assessee that the CIT(A) erred in dismissing the appeal of the assessee and the adhoc addition made by the AO is unjustified.

3.

Brief facts of the case are that the assessee is a civil contractor based in Mayurbhanj District, Odisha and filed the return of income for the assessment year 2010-2011 on 24.05.2012 with total income of Rs.44,68,660/- and the return of income was processed u/s.143(1) of the Act and subsequently the case was selected for scrutiny under and notice u/s.143(2) & 142(1) was issued. In compliance to the same, ld. AR of the assessee appeared from time to time.

2 produced books of accounts and the case was discussed. The AO on perusal of the profit element in respect of gross receipt of Rs.9,40,54,744/-, found that the assessee has claimed various expenditure and also issued notice u/s.142(1) of the Act to submit the details. Further the ld. AO also dealt on the purchases amounting to Rs.2,71,43,781/- and required the assessee to identify the creditors and substantiate the genuineness of the creditors dealt at para 5 of the order. Since the assessee has not filed any particulars or details, the AO has no alternative but to make addition of Rs.27,14,378/- and passed the order u/s.143(3) of the Act, dated 26.03.2014. 4. Aggrieved by the order of AO, the assessee filed an appeal with the CIT(A). In the appellate proceedings, ld. CIT(A) observed that the assessee is not interested in pursuing the appeal and dismissed the appeal of the assessee.

5.

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

6.

Before us, ld. AR submitted that the CIT(A) has erred in dismissing the appeal and also the assessee’s case has, prima facie merits on the disputed issue and can support with evidence. Since the ld. CIT(A) dismissed the appeal of the assessee on the ground of refusal. The ld. AR submitted that the assessee shall cooperate in submitting the details before the income tax authorities and, prayed for an opportunity to be 3 granted. On the other hand, ld. DR relied on the orders of authorities below.

7.

We have heard the rival contentions and perused the material on record. Prima facie, the contention of ld. AR that an opportunity of hearing be granted as the ld. CIT(A) has not dealt on the merits of the case. Further, ld. AR submitted that the assessment by the AO is on higher side and requested for reasonable percentage of profit can be fixed which the assessee shall accept, whereas ld. DR submitted that the CIT(A) has dismissed the appeal because the assessee could not substantiate its claim before the lower authorities. We considering the apparent facts and material on record and in the interest of substantial justice, provide one more opportunity to the assessee to present its case before the appellate authority. Accordingly, we direct the assessee to appear before the ld. CIT(A) within a period of one month from the date of receipt of the copy of the Tribunal order and shall cooperate in submitting the information and disposal of the appeal and the ld. CIT(A) shall pass a speaking order considering the submissions of the assessee on merits. We order accordingly.

8.

In the result, appeal of the assessee is allowed for statistical purposes. Order pronounced in the open court on this 19/09/2017. (N. S. SAINI) (PAVAN KUMAR GADALE) लेखा सदस्य / ACCOUNTANT MEMBER न्याधयक सदस्य / JUDICIAL MEMBER कटक Cuttack; ददनांक Dated 19/09/2017 प्र.कु.धि/PKM, Senior Private Secretary

4 आदेश की प्रधतधलधप अग्रेधषत/Copy of the Order forwarded to : 1. अपीलाथी / The Appellant- Satendra Prasad, Ward No.5, Kacheri Road, Baripada-757001 प्रत्यथी / The Respondent-

2.

DCIT, Balasore Circle, Balasore आयकर आयुक्त(अपील) / The CIT(A), 3. 4. आयकर आयुक्त / CIT निभागीय प्रनतनिनर्, आयकर अपीलीय अनर्करण, कटक / DR, ITAT, Cuttack 5. 6. गाडा फाईल / Guard file. सत्याधपत प्रधत //// आदेशानुसार/ BY ORDER,

(Senior Private Secretary) आयकर अपीलीय अधधकरण, कटक / ITAT, Cuttack

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