SARTHAK IRRIGATION AND TRACTORS,BARWANI vs. ITO, SENDHWA, SENDHWA

आदेश / O R D E R

Per B.M. Biyani, A.M.:

Feeling aggrieved by appeal-order dated 30.12.2023 passed by learned Commissioner of Income-Tax (Appeals), NFAC, Delhi [“CIT(A)”] which in turn arises out of assessment-order dated 25.09.2019 passed by Income-tax Officer, Sendhwa [“AO”] u/s 144 of Income-tax Act, 1961 [“the Act”] for Assessment-Year [“AY”] 2017-18, the assessee has filed this appeal.

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Sarthak Irrigation and Tractors, Barwani. I.T.A.No. 36/Ind/2024 A.Y. 2017-18

available in ITBA module of department, noticed that the assessee-firm

made deposits in a bank a/c during demonetization period. Accordingly, the

AO issued statutory notice u/s 142(1) calling assessee to file return of

income but the assessee did not submit. Then, the AO issued some more

notices which too remained un-complied by assessee. Ultimately, the AO,

based on information in his possession including the information called

directly from bank u/s 133(6), passed assessment-order u/s 144 whereby

he made an addition of Rs. 26,98,887/- in respect of deposits/credit entries

in bank account of assessee. Aggrieved, the assessee carried matter in

appeal but did not make any response to the notices of hearing issued by

CIT(A). Therefore, the CIT(A) passed ex-parte order dismissing assessee’s

appeal for non-prosecution as well as on merit. Now, the assessee has come

in next appeal before us.

paper-book more particularly the auditors’ report and audited financial

statements of the concern ‘M/s Sarthak Irrigation and Tractors’ in an

attempt to demonstrate that the said concern was originally a partnership-

firm but subsequently converted into a proprietorship concern with

proprietor ‘Smt. Kavita Kamal Parmar’. He submitted that during AY 2017-

18 under consideration, it was a proprietary concern and the impugned

deposits/credits in bank a/c related to the business of proprietary concern

and not to assessee-firm. He further submitted that the deposits/credit

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Sarthak Irrigation and Tractors, Barwani. I.T.A.No. 36/Ind/2024 A.Y. 2017-18

entries were relatable to the sale-proceeds of business carried on by

proprietary concern. However, these facts could not be placed before lower-

authorities because the assessee-firm had already ceased to exist and the

notices issued by lower-authorities could not be compiled. Ld. AR submitted

that had the relevant facts been submitted to AO, there would not have been

any addition. Ld. AR requested that in the interest of justice, an opportunity

should be given to assessee to explain all facts with documents to AO so

that the AO can take a proper view in accordance with law and thereby

make a proper assessment. Ld. DR fairly agreed to the request of Ld. AR but

prayed to direct the assessee/present proprietor to extend full co-operation

to AO and ensure participation in proceedings.

that an opportunity must be given to assessee in the interest of justice. This

would also enable the AO to assess income properly in accordance with the

provisions of law after due consideration of assessee’s representation.

Therefore, we are restoring this matter to the file of AO for assessment

afresh after hearing assessee and after considering assessee’s submission.

The assessee/present proprietor is also directed to make adequate

representation before AO and extend full co-operation. Ordered accordingly.

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Sarthak Irrigation and Tractors, Barwani. I.T.A.No. 36/Ind/2024 A.Y. 2017-18

Order pronounced in open court on 10.05.2024.

Sd/- sd/- (VIJAY PAL RAO) (B.M. BIYANI) JUDICIAL MEMBER ACCOUNTANT MEMBER Indore िदनांक /Dated : 10.05.2024 CPU/Sr. PS Copies to: (1) The appellant (2) The respondent (3) CIT (4) CIT(A) (5) Departmental Representative (6) Guard File By order UE COPY Assistant Registrar Income Tax Appellate Tribunal Indore Bench, Indore

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