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2017 (9) TMI 659

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..... in his order, categorically observed that the assessee has not filed any evidence except producing some ledger extracts in respect of the expenses claimed by the assessee. He has also observed that only basing on ledger extracts, no expenditure can be allowed and therefore confirmed the order of the A.O. Thus in the interest of justice, the entire issues has to go back to the A.O. to decide the case based on the books of accounts and relevant evidences. Therefore, we set aside the order passed by the Ld. CIT(A) and send it back to the A.O. to adjudicate this issue de-novo in accordance with law. In so far addition made by the A.O. the A.O. has observed that, it is seen from the assessee’s balance sheet that the assessee is showing liabi .....

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..... declaring total income of ₹ 2,03,726/-. The case of the assessee was selected for scrutiny and notices u/s 143(2) 142(1) of the Income Tax Act, 1961 (hereinafter called as 'the Act') were issued to the assessee. The A.O. has also given sufficient opportunities to the assessee for hearing, however, the assessee has not appeared before the A.O. The assessee has not filed books of accounts and no evidence to support the return filed by him. Accordingly, A.O. has completed ex-parte assessment u/s 144 of the Act. In the assessment order, the A.O. has further observed that it is seen from the accounts copy of the assessee that he has made a sales to the tune of ₹ 3,19,71,278/-. The A.O. by considering the trading results of .....

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..... 66,881/- is added to the total income of the assessee. 3. Assessee carried matter in appeal before the CIT(A). The Ld. CIT(A) posted the appeal for several times. No one appeared. Finally in response to the notice of hearing on 21.11.2011, the assessee filed a written submission along with letter requesting to dispose of the appeal on merits. The Ld. CIT(A) by considering the written submissions of the assessee, the appeal filed by the assessee is disposed. So far as disallowance of expenses are concerned, the Ld. CIT(A) observed that the A.O. has made disallowance of 20% of the expenditure claimed by the assessee on items like freight, gunnies, hamali and machinery repairs for want of evidence such as details, bills, vouchers, etc. Ass .....

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..... ntrary to the decision of Hon ble jurisdictional High Court in the case of Indwell Constructed Limited Vs. CIT (supra) and submitted that the same may be deleted. 6. On the other hand, the Ld. D.R. strongly supported the order passed by the authorities below. 7. I have heard both the parties, perused the materials available on record and gone through the orders of the authorities below. The A.O. has given as many as opportunities to the assessee to substantiate his case before him. However, the assessee neither appeared before the A.O. nor filed any books of accounts or any details in respect of the business carried out by the assessee and also various expenses claimed by him. The A.O. on the basis of material available as per the ret .....

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..... ubmissions filed by the assessee. Before us, the Ld. Counsel for the assessee has submitted that before the A.O., no details are filed. Even before the CIT(A), only written submissions are filed. No correct facts are coming out and submitted that the issue may be remitted back to the A.O. for de-novo consideration. 9. On the other hand, the Ld. D.R. has not raised any objection. 10. In view of the request made by both the parties, we set aside the order passed by the Ld. CIT(A) and direct the A.O. to decide this issue de-novo in accordance with law, after giving sufficient opportunity to the assessee. 11. In the result, the appeal filed by the assessee is allowed for statistical purposes. The above order was pronounced in the op .....

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