Sapna Sameer Vs ITO (ITAT Kolkata)
ITAT Kolkata remanded the matter of addition towards unexplained deposit to AO since proper representation couldn’t be made by the assessee both at the stage of assessment order and at the stage of appellate order.
Facts- The case of the assessee was selected for limited scrutiny with the reasons “Large cash deposits in bank account(s)”. The assessee failed to respond to the notices issued and AO made addition on account of 8% of total receipts of Rs 16,88,93,079/-, which comes to Rs 1,35,11,446/- and as the assessee had already declared Rs 30,50,140/-in her ITR, so the difference of Rs. 1,03,70,391/- was added to the total income of the assessee.
CIT(A) vide order dated 05/04/2024 confirmed the addition as the assessee did not respond to the notices issued for hearing of the appeal. Being aggrieved, the present appeal is filed.
Conclusion- Held that at both the stages of assessment order before the Ld. AO as well as before the Ld. CIT(A) in the appeal, proper representation could not be made on behalf of the assessee. The Ld. AR requested that the matter may be remitted to the Ld. AO while the Ld. DR supported the order of the Ld. CIT(A). After considering the facts of the case, we deem it appropriate in the interest of justice and fair play that another opportunity needs to be provided to the assessee to represent her case properly before the Ld. AO as the assessee claims to have sufficient evidence in support of the relief claimed and the audit report was also available for the books of accounts which were audited. We, therefore, set aside the order of the Ld. CIT(A) as well as of the Ld. AO and remand the matter to the Ld. AO to frame the assessment afresh, after affording an opportunity of being heard to the assessee and thereafter pass an order in accordance with law.
