MANSOOR BASHA COURT,ADONI vs. INCOME TAX OFFICER, WARD-1, ADONI

The brief facts of the case are that the assessee is carrying on the business of wholesale business in agricultural products in the name and style of M/s. C.M. Traders. For the assessment year 2017-2018, the assessee file his return of income and later the scrutiny was picked under CASS. Statutory notices u/s 143(2) and 142(1) of the I.T. Act, 1961 and also a show cause

On appeal, the learned CIT (A) dismissed the appeal of the assessee for of want of prosecution as the assessee did not comply with the notices issued by the assessee on several occasions and upheld the penalty levied by the Assessing Officer u/s 271AAC(1) of the I.T. Act, 1961.

Aggrieved by the order of the learned CIT (A), the assessee is in appeal before the Tribunal.

I have heard both the parties, perused the material available on record and gone through the orders of the authorities below. The learned Counsel for the assessee submitted that the assessee filed an affidavit and explained that the accountant who is looking into tax matters was expired on 2.7.2023 and thus there was no proper compliance either during the course of penalty proceedings or appellate proceedings. Therefore, submitted that the matter may be set aside to the file of the learned CIT (A) to give one more opportunity to the assessee.

The learned DR fairly agreed to set aside the issue to the file of the learned CIT (A) for fresh adjudication.

I find, the appeal filed by the assessee on additions made by the Assessing Officer is also pending for adjudication before the first appellate authority. Therefore, considering the fact that the appellant could not get sufficient opportunity to explain its case before the learned CIT (A) and also penalty proceedings needs to be disposed off after deciding the quantum appeal filed by the assessee against the additions made by the Assessing Officer, in my view, the issue needs to go back to the file of the learned CIT (A) for fresh adjudication. Thus, I set aside the order of the learned CIT (A) and direct the learned CIT (A) to decide the issue either along with the quantum appeal filed by the assessee or after the outcome of the decision of the first appellate authority on additions made by the Assessing Officer.