MR. SACHIN UPADHAYA,NEW DELHI vs. JCIT (OSD), MEERUT

This appeal is filed by the assessee against the order of CIT(A) dated 17.09.2014 wherein the ld. CIT(A) has dismissed the appeal of the assessee as none appeared before him on the appointed date. The grievance of the assessee is that the case of the assessee has not been discussed and decided on merits by the CIT(A).

Brief facts of the case are that the assessee is an individual who has shown total income of Rs.14,31,905/- in his return of income as stated by the Assessing Officer. Further the addition of Rs.11,25,000/- was also made in the hands of the assessee on account of credit entries appearing in the axis bank account of the assessee. A further addition of Rs.5,00,000/- is also made in the hands of the assessee u/s. 69 of the IT Act on account of amount deposited in the bank account. Aggrieved by the order of the AO the assessee carried the matter before the CIT(A). However, the assessee could not remain present and therefore, the CIT(A) dismissed the appeal of the assessee holding that the addition made by the Assessing Officer is correct. The assessee is aggrieved that no proper opportunity has been granted. Further, regarding non- appearance, it was submitted that the hearing was scheduled before the CIT(A) on 17.09.2014 for which adjournment request was sent by the assessee on 15.09.2014, i.e., late by one day and therefore, there is a reasonable cause. For this, the AR of the appellant has submitted at page No. 53 of the paper book details of speed post tracker as well as at page No. 52, copy of the adjournment letter. As CIT(A) has also not considered the issue on merits, it was submitted that the matter may be restored back to the file of CIT(A).

The ld. DR vehemently objected that the Assessing Officer has dealt with each and every addition after granting proper opportunity to the assessee. However, before the AO as well as before the CIT(A), the assessee is non- compliant and therefore, the addition may be confirmed.

We have heard the rival contentions and also perused the adjournment application purportedly sent by the assessee by speed post on 15.09.2014. Interestingly, before us, the assessee has filed an affidavit stating that he has not filed any return of income for the assessment year 2009-10 and further, it was submitted that he has only paid advance tax of Rs.4,00,000/- whereas the Assessing Officer has stated that the assessee has filed return of income showing total income of Rs.14,31,905/-.The Assessing Officer has also stated that the return of income has been downloaded by him from the system on 28.09.2011. Therefore, there is a basic controversy which requires to be resolved by the CIT(A) in view of the affidavit filed by the assessee, whether the assessee has filed anyreturn of income at all. In view of this fact and in the interest of justice, the matter is restored back to the file of CIT(A) as in the order of CIT(A), merits were not discussed, to decide the issue afresh after affording assessee adequate opportunity of hearing. This direction is given after obtaining the undertaking of the counsel appearing for the assessee Mr.