KONKAN EXPORTS LTD,MUMBAI vs. ITO 6(2)(4), MUMBAI

At the outset, it is noticed that in both the appeals of the assessee the assessment orders are ex-parte and assessments were framed u/s 144 of the Act. In both the cases, the disallowances by estimating gross profit @5% of the turnover, ad hoc disallowance

2 & 8888/Mum/2010 of expenses at @25% and additions on unsecured loans were made. We also find that the CIT (A)’s orders in both the cases are non-speaking and just confirming the orders of the AO by stating that the orders of the AO does not call for interference.

In view of the above facts, the learned Counsel for the assessee stated that neither the CIT (A) nor the AO has adjudicated the issues and the AO’s assessment orders are ex-parte and assessments were framed u/s 144 of the Act without providing reasonable opportunity of being heard to the assessee. Under such facts, the learned Counsel for the assessee requested for setting aside the orders of the lower authorities and for remitting the matter back to the file of the AO.

On the other hand, the learned Sr. DR also has not opposed to the setting aside of the orders of the lower authorities and remitting the matter back to the file of the AO for fresh adjudication. However, the learned Sr. DR requested the Bench that the asseseee be directed to cooperate in the assessment proceedings by producing all necessary details and evidences including the books of account. Needless to say that the assessee will produce the details called for by the AO to prove their claim. In the entirety of the facts of the case, we feel that the orders of the authorities below lack adjudication and also lack opportunity of being heard to the assessee. In terms of these, we set aside the orders of the lower authorities in both the cases and remit the issues back to the file of the AO for fresh adjudication after allowing reasonable opportunity of being heard to the assessee.