2021 (7) TMI 570

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....s in filing the present appeal and assessee has not explained the delay as the assessee has not filed any application for condonation of delay. Thus, the ld. D.R has contended that the present appeal of the assessee is not maintainable being barred by limitation. On the other hand the ld. A.R of the assessee has submitted that the assessee has explained the cause of delay in brief synopsis which has been supported by the affidavit of the partner of the assessee firm. The ld. A.R has pointed out that the CIT(A) has passed the impugned order exparte whereby adhoc addition made by the A.O was confirmed and enhancement of income was also made by the CIT(A) by estimating the income of Rs. 50 lac. After enhancement made by the CIT(A) the profit r....

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....ed post was delivered to the assessee or received back unserved. In the absence of any material to show that the impugned order was delivered to the assessee and further in view of the fact that the show cause notice issued by the CIT(A) during the pendency of the appeal was received back unserved and consequently the impugned order was passed exparte the Explanation for filing the appeal after gap of about 3 years cannot be doubted. Therefore, in the facts of the circumstances of the case when the CIT(A) has enhanced the assessment while passing the exparte order and that too without serve the show cause notice on the assessee the appeal of the assessee is admitted for disposal on merits. 3. The assessee has raised following grounds: "1....

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....made by the Assessing Officer and upheld by the CIT(A) are bad in law, arbitrary, contrary to provisions of law be deleted." 4. At the outset the ld. A.R of the assessee has submitted that the assessee is a government contractor and file its return of income on 1st February, 2003 declaring total income of Rs. 2,25,850/-. The assessing officer while framing the assessment u/s 143(3) on 17.01.2006 has made various adhoc disallowances on account of expenses. He has further submitted that the CIT(A) not only confirmed the adhoc disallowances made by the A.O but also enhanced the income of the assessee without any basis. The enhancement is also an adhoc estimation by the CIT(A). Since the assessee was not given appropriate opportunity before th....