SAMSHER SINGH,RENUKOOT vs. INCOME TAX OFFICER - III(4), SONBHADRA

In this case, exparte assessment order under Section 147/144 of the Income Tax Act, 1961 (in short the Act) was passed by the Assessing Officer, whereby the Assessing Officer estimated income of the assessee at Rs.13,13,540/- by applying adhoc estimated rate of 5% on assessee’s transactions totaling Rs.2,62,70,745/- on MCX (Multi Commodity Exchange) futures. The learned CIT(A) dismissed the assessee’s appeal ex-parte, in a summary manner, without passing a speaking order on merits of the case. This is in violation of statutory duty of learned CIT(A), as contained in Section 250(6) of the Act to pass speaking order for determination. Further, the assessment order was also passed ex-parte without providing reasonable opportunity to the assessee.

At the time of hearing, learned Departmental Representative (DR) for Revenue left the decisions to the discretion of the Bench. In view of the foregoing, the impugned order of the learned CIT(A) is set aside and the issue in dispute regarding addition made in the assessment order is restored back to the file of the AO with a direction to pass denovo assessment order on these issues in accordance with law, after providing reasonable opportunity to the assessee, and, in accordance with law.

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