MALAIYALAGU CHINNAKOMBIAH,TUTICORIN vs. ITO, WARD-1 , TUTICORIN

The assessee is an individual filed his return of income for the A.Y 2015-16 showing total income of Rs. 3,02,557/- and assessment :- 2 -: was completed u/s. 143(3) of the Act. Subsequently, the A.O has reopened the assessment on the ground that there is cash deposit in the bank account of the assessee to the tune of Rs. 3,00,17,265/- as against reported sale of Rs.2,61,28,975/- and therefore, the escapement income of Rs. 38,88,290/- being difference of sale reported and cash deposit in the bank account. The A.O in the assessment order has made the addition @ 8% of the cash deposit u/s. 44AD of the Act and passed ex-parte order u/s. 144 of the Act.

The Ld. A.R has contended that sufficient opportunity was not provided to the assessee either before A.O or before Ld. CIT(A) and both the orders have been passed ex-pare and therefore the case may be remitted back to the A.O for fresh consideration.

The Ld. D.R relied on the orders of the authorities below and requested to dismiss the appeal.

We have heard the rival submissions, and perused the materials available on record. On perusal of the orders of A.O as well as Ld. CIT(A), we find that the orders have been passed ex-parte for the non- compliance by the assessee. The Ld. A.R has submitted that the Ld. :- 3 -:

CIT(A) has not decided the issue on merits, therefore the case may be remanded back to the A.O for adjudication on merits. 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 A.O and the Ld. CIT(A) and remit the matter back to the file of the A.O to adjudicate this appeal afresh in accordance with law, 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 and furnish complete details for his fresh consideration. In view of the above, the appeal filed by the assessee is allowed for statistical purposes.

In the result, the appeal filed by the assessee is allowed for statistical purposes.