SUSANTA SAHA,KOLKATA vs. ITO, WD-40(1), KOLKATA, KOLKATA

This appeal of the assessee arises out of the order of Learned CIT(A)-21, Kolkata, in Appeal No.1409/ITO,W-40(1)/CIT(A)-21/KOL/14- 15, dated 03.02.2016 passed against the assessment framed u/s.144 of the Income Tax Act, 1961 (hereinafter referred to as the ‘Act’).

The only issue involved in this appeal is as to whether the ld.CIT(A) is justified in upholding the addition made in the sum of Rs.96,716/- on estimated basis by the ld. AO in the facts and circumstances of the case.

The brief facts of this issue are that the assessee is an individual deriving income from contract work. The return of income for the assessment year 2006-07 was filed by the assessee declaring taxable income of Rs.1,03,284/-. The assessee had just submitted the computation of total income along with return of income. Ld.AO observed that assessee had not enclosed any profit and loss account and balance sheet along with return of income and accordingly called for the same along with other details by issuing statutory notices under section 143(2)

Before the ld. CIT(A) there was no compliance from the part of the assessee in spite of various notices issued thereon. Ld. CIT(A) accordingly confirmed the addition made by the ld. AO. Aggrieved the assessee is in appeal before us.

Ld. AR argued that assessee had already declared net profit of Rs.96,466/- which roughly works out to 25% of total contract receipts of Rs.3,91,133/-. In support of this contention, he placed a copy of balance sheet and profit and loss account of the assessee for the year ended 31.03.2006. He argued that in case if this addition made by the ld. AO is sustained then it would result in an abnormal profit figure of roughly 50% of the total receipts, which is practically not possible to earn in the nature of business carried on by the assessee and also is beyond 8% prescribed u/s.44AD of the Act.

When the case was called on, none appeared on behalf of the revenue and the revenue not even filed any adjournment request either in person or through a written petition. Accordingly, we proceed to hear the appeal on merits and on hearing the ld. AR.

We have heard ld. AR. We find that there was absolutely non- cooperation from the side of the assessee by producing the relevant details in the form of primary documents such as profit and loss account and balance sheet of the proprietary concern to justify the net profit from business disclosed by the assessee. We also find that even before the ld. CIT(A) there was no appearance from the side of the assessee. Ld. AR had filed a copy of the balance sheet and profit and loss account before us for the first time and hence, in the interest of justice and fair play, we deem it fit and appropriate to make these documents available for examination by the ld. AO and accordingly set aside the appeal to the file of ld. AO to decide the same afresh in accordance with law. Needless to mention that assessee be given reasonable opportunity of being heard. Accordingly, grounds raised by the assessee are allowed for statistical purposes.

In the result, appeal of the assessee is allowed for statistical purposes.