SANDEEP KHERA,LUDHIANA vs. ITO WARD 2(3), LUDHIANA

In this regard, briefly the facts of the case are that the AO was in receipt of the information that the assessee has purchased 800 shares of M/s P.L. Khera Yarns Pvt. Ltd. at the rate of Rs. 200/- per share and paid a consideration of Rs. 16,00,000/- during the Financial Year 2011-12 relevant to impugned Assessment Year. Thereafter, the reasons were recorded and notice under section 148 were issued to the assessee on 30/03/2018. Thereafter after issue of show cause under section 144 and in absence of any explanation submitted by the assessee explaining the nature and the source of purchase of shares, the AO went ahead and made the addition to the tune of Rs. 16,00,000/- as income from unexplained sources.

Being aggrieved, the assessee carried the matter in appeal before the Ld. CIT(A) who has since sustained the said addition by passing an ex-parte order and against the said order, the assessee is in appeal before us.

During the course of hearing, none appeared on behalf of the assessee nor was any adjournment application filed and considering the fact of the case, it was decided that no useful purpose would be served in adjourning the matter any further.

Heard the ld DR and purused the material available on record. Considering the facts and circumstances of the case, where the impugned order has been passed ex-parte qua the assessee and there is no finding on the merits of the case, I believe that the assessee deserve one more opportunity to represent its case before the Ld. CIT(A) and accordingly, I hereby set aside the matter to the file of the Ld. CIT(A) to decide the same afresh as per law after providing reasonable opportunity to the assessee.

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