ITAT Cuttack Judgments — January 2019

The Tribunal found that the assessee was not afforded adequate opportunity of hearing at both the Assessing Officer and CIT(A) levels, violating principles of natural justice. Therefore, the case was restored to the Assessing Officer for a denovo assessment.

The Tribunal held that neither 8% nor 4% was a reasonable net profit estimate for the assessee's business of trading mobile recharge vouchers. The Tribunal directed the Assessing Officer to estimate the net profit at 3% of the total turnover.

The Tribunal inferred that the assessee was not interested in pursuing the appeal. Following precedent, the appeal was dismissed for non-prosecution.

The Tribunal held that the CIT(A) did not provide sufficient opportunities for the assessee to be heard, violating principles of natural justice. Therefore, the case was remitted back to the Assessing Officer for a fresh assessment.