SACHIN SHANKAR AGNIHOTRI,WARDHA vs. ASSISTANT COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-2(1), NAGPUR, NAGPUR

Since the issue raised by the assessee in both these appeals are common, except variation in figures, therefore, as a matter of convenience these appeals were heard together and are being disposed off by way of this consolidated order. The common ground raised by the assessee in both the years under consideration is as under:–

I have heard both the sides, perused the records and gone through the order passed by the authorities below. I find that the Assessing Officer estimated the income of the assessee @ 8% and accordingly the assessment was completed. On appeal, the learned CIT(A) enhanced the estimation made by the Assessing Officer from 8% to 25% without issuing notice to the assessee. According to me, if at all the learned CIT(A) wanted to enhance the income assessed by the Assessing Officer, it was mandatory for the learned CIT(A) to issue notice to the assessee. In this case, no such notice was issued by the learned CIT(A) to the assessee. Apart from this, I also find that the estimation made by the Assessing Officer @ 8% is found to be reasonable and no enhancement was required by the learned CIT(A) further. Accordingly, the addition made by the Assessing Officer has to survive. In view of the above, I set aside the impugned order passed by the learned CIT(A) and delete the enhancement made by the learned CIT(A) by upholding order passed by the Assessing Officer for the assessment year 2018–19 and 2019–20.

In the result, appeals filed by the assessee for the assessment year 2018–19 and 2019–20 are partly allowed. Order pronounced in the open Court on 20/12/2024