IN THE INCOME TAX APPELLATE TRIBUNAL
DELHI BENCH "C", NEW DELHI
BEFORE SHRI R.S. SYAL, ACCOUNTANT MEMBER
SHRI H.S. SIDHU, JUDICIAL MEMBER
I.T.A. No. 3507/DEL/2013
A.Y. : 2006-07
Praveen Kumar VS. ITO, Ward-2,
Sharma, Income Tax Teachers
C/o Mukesh Kumar Colony,
2, Sunder Puri,
Assessee by : Sh. Saurabh Gupta, CA
Department by : Sh. Satpal Singh, Sr. DR
PER H.S. SIDHU, JM
This appeal by the Assessee is directed against the order dated
15.3.3013 passed by the Ld. Commissioner of Income Tax (Appeals),
Meerut pertaining to assessment year 2006-07.
2. The grounds raised by the assessee are as under:-
"1. That the Ld. AO was erred in not opting assessment of
Trade Tax under Samadhan Scheme.
2. That the Ld. AO was erred in enhancing the sale on the
basis of trade tax paid by the assessee under the
3. That the order of the Ld. AO was against the law and
facts of the case and based on surmises and
3. The facts relating to the issue are in dispute that the return
of income from brick kiln filed by the assessee on 25.1.2007 and the
case was selected for scrutiny and notices u/s. 143(2) were issued
on 28.1.2008. Ld. Counsel for the assessee sought adjournments
three times. Notice u/s. 142(1) was issued on 1.8.2008, but no
compliance was made from the side of the assessee, except seeking
adjournment and another notice u/s. 142(1) of the IT Act was issued
on 24.11.2008 and date for compliance was fixed on 4.12.2008, but
this notice also got not complied with and accordingly, the case was
got barred by limitation on 31.12.2008. However, one more
opportunity was given to the assessee by serving a notice u/s.
142(1) dated 11.12.2008 and date for compliance was fixed for
17.12.2008. Assessee was required to produce the relevant books
of accounts, documents and evidences. The books of accounts and
other details / documents in support of sales disclosed have not
been produced neither details and basis of trade tax payment has
been furnished. In view of these facts, the assesee has not made
compliance to the show cause letter issued along with notice u/s.
142(1) of the I.T. Act dated 11.12.2008 for completion of
assessment. Hence, the AO proceeded exparte and made the
assessment order u/s. 144 of the I.T. Act and income assessed on
Rs. 3,40,670/- and addition was accordingly made.
4. Aggrieved by the order of the Ld. AO, assessee appealed
before the Ld. CIT(A), who vide impugned order dated 15.3.2013
partly allowed the appeal filed by the assessee.
5. Against the above impugned order of the Ld. CIT(A), assessee
has preferred an appeal before the Tribunal.
6. Ld. Counsel of the assessee has submitted Ld. AO as well as
Ld. CIT(A) has not given adequate opportunity to canvass his case
properly by producing the evidence before him. Therefore, he has
requested to kindly allow him to canvass his case before the AO.
7. On the other hand, Ld. DR relied upon the order of the Ld.
8. We have heard both the counsel and perused the records. We
find Ld. AO has not given sufficient opportunity to the assessee for
substantiating his claim before the AO. Similarly, the Ld. First
Appellate Authority has partly allowed the appeal, by rejecting the
main request of the assessee, which is contrary to the principle of
natural justice. We find that AO has issued notice for producing
necessary evidence for a very short time and assessee could not
produced sufficient evidence before the AO. In view of the facts
and circumstances, we are of the view that the it would be fair and
just, if the issues are sent back to the file of the AO for fresh
adjudication, after giving full opportunity to the assessee for
substantiate its claim before the AO. Accordingly, we set aside the
issues to the file of the AO with the direction to consider the same
afresh. Assessee is also directed to produce all the relevant
materials and documents to the AO and not to take unnecessary
9. In the result, the Appeal filed by the Assessee stands allowed
for statistical purposes.
Order pronounced in the Open Court on 08/8/2014.
[R.S. SYAL] SIDHU]
ACCOUNTANT MEMBER JUDICIAL MEMBER
Copy forwarded to: -
1. Appellant -
2. Respondent -
4. CIT (A)
5. DR, ITAT
ITAT, Delhi Benches