MATA PRASAD GUPTA/ L.R. MALTI GUPTA,HOOGHLY vs. INCOME TAX OFFICER -WARD 2(1), ASANSOA, BURDWAN

The assessee in the present case is an individual, who was engaged in the business of trading of hardware items under the name and style of his proprietary concern M/s. Gupta Enterprises. The return of income for the year under consideration was filed by him on 31.03.2009 declaring total income of Rs.2,66,990/-. The said return was taken up by the Assessing Officer for scrutiny assessment and since there was no ./2013 Assessment year: 2008-2009 Page 2 of 4 compliance on the part of the assessee to the notices issued during the course of assessment proceedings and the assesese also expired during the relevant period, the Assessing Officer completed the assessment vide order dated 14.12.2010 passed under section 144/143(3) in the name of Smt. Malti Gupta, wife of the assessee as the legal heir. In the assessment so made, the total income of the assessee was determined by the Assessing Officer at Rs.37,38,290/- after making the following additions:- (i) Undisclosed Investment in Rs.22,00,000/- purchase of Mutual Funds (ii) Rs. 7,50,000/- Undisclosed Investment in NSC/KVP (iii) Income from unaccounted Rs. 4,21,295/- sales (iv) Undisclosed Investment in Rs. 1,00,000/- CDR Against the order passed by the Assessing Officer under section 144/143(3), an appeal was preferred by the assessee before the ld. CIT(Appeals) and since there was no compliance to the notices issued by him during the course of appellate proceedings, the ld. CIT(Appeals) dismissed the said appeal filed by the assessee vide his impugned order passed ex-parte for non-prosecution. Aggrieved by the order of the ld. CIT(Appeals), the assessee has preferred this appeal before the Tribunal.

We have heard the arguments of both the sides and also perused the relevant material available on record. As submitted by the ld. counsel for the assessee, the wife of the assessee after his death at the relevant time could not comply with the notices issued by the Assessing Officer during the course of assessment proceedings. He also pointed out that even two of the three notices issued by the ld. CIT(Appeals) during the course of appellate proceedings were not served on the legal heir of the assessee as the same came back unserved with the remark “deceased” as mentioned by the ld. CIT(Appeals) himself in his impugned order. He has contended that the assessee thus was given only one effective opportunity of being heard by the ld. CIT(A) and since the same is neither sufficient nor ./2013 Assessment year: 2008-2009 Page 3 of 4 proper, the impugned order passed by the ld. CIT(Appeals) ex-parte dismissing the appeal of the assessee for non-prosecution is liable to be set aside. The ld. D.R. has not raised any argument to controvert this position. He, however, has contended that since there was no compliance on the part of the assessee even before the Assessing Officer during the course of assessment proceedings resulting into ex-parte order under section 144/143(3), the matter may be restored to the file of the Assessing Officer for making the assessment afresh with a direction to the assessee to make due compliance before the Assessing Officer. We find merit in this contention of the ld. D.R. and since the ld. counsel for the assessee has also not raised objection in this regard, we set aside the impugned order passed by the ld. CIT(Appeals) and restore the matter to the file of the Assessing Officer for making the assessment afresh after giving one more opportunity of being heard to the assessee. As undertaken by the ld. counsel for the assessee before us, the assessee shall make due and proper compliance before the Assessing Officer in order to enable him to complete the assessment expeditiously.

In the result, the appeal of the assessee is treated as allowed for statistical purposes. Order pronounced in the open Court on February 03, 2017.