ELENGOVAN RAJU,CHENNAI vs. ITO NON CORPORATE WARD 17(4), CHENNAI

The assessee raised 7 grounds of appeal, amongst which only issue emanates for our consideration as to whether the ld. CIT(A) is justified in confirming the order of the Assessing Officer without there being proper opportunity to the assessee.

At the outset, we note that the assessment was completed under section 147 r.w.s. 144 read with section 144B of the Income Tax Act, 1961 [“Act” in short] determining total income of the assessee at ₹.42,44,340/- as against NIL income, inter alia, making addition on account of undisclosed short term capital gain and undisclosed interest income. On perusal of the assessment order at page 5, we note that the Assessing Officer held that the assessee neither furnished any explanation or papers/documents nor ITR is filed nor any explanation regarding capital gain. The Assessing Officer proceeded to complete the assessment according to his best judgement in the absence of any explanation from the assessee. Likewise, on perusal of the order of the ld. CIT(A) at para 6.2, clearly shows that the assessee filed fresh evidence before the ld. CIT(A) without proper application seeking admission of the said fresh evidence and the ld. CIT(A) held the same as not admissible for not furnishing before the Assessing Officer having in the possession of the assessee, further for not filing proper application seeking admission of fresh evidence.

The ld. AR Shri N. Quadir Hoseyn, Advocate submits that the assessee furnished valuation report before the ld. CIT(A), but, however, no application filed seeking admission of the said fresh

The ld. DR Shri D. Hema Bhupal, JCIT reported objection that the Assessing Officer and the ld. CIT(A) given many opportunities to the assessee, as the assessee failed to utilize the same.

As discussed above, we note from the assessment order as well as impugned order, it is established that there was no opportunity for the assessee in prosecuting his case, but, however, on the undertaken given by the ld. AR that the assessee is ready to prosecute his case before the Assessing Officer without fail, we deem it proper in the interest of justice to remand the matter back to the file of the Assessing Officer for his consideration afresh. The assessee is at liberty to file evidence in support of his claim and the Assessing Officer shall conduct the assessment proceedings de novo. Thus, grounds Nos. 1 to 7 are allowed for statistical purposes.

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