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Issues:
Ex parte assessment under section 144 without notice under section 142(1), Disallowance of expenses claimed by the assessee, Non-compliance with directions of the Assessing Officer. Analysis: The appeal was against an ex parte assessment for the assessment year 1984-85, where the total income was assessed at Rs. 1,30,670 against the returned loss of Rs. 1,10,722. The main discrepancy arose due to the disallowance of claimed commission and other expenses. The assessee challenged the assessment before CIT(A) but was unsuccessful, leading to an appeal before the Appellate Tribunal. The assessee contended that the ex parte assessment was invalid as no notice under section 142(1) was issued, and the notice under section 143(2) was blank. However, the Tribunal held that the Assessing Officer had the authority to issue an assessment under section 143(2) without a notice under section 142(1). The Tribunal also rejected the argument that all expenses should have been allowed, stating that the Assessing Officer had the discretion to require proof for specific expenses. Regarding non-compliance with directions, the Tribunal noted a series of instances where the assessee failed to comply with the Assessing Officer's requests. The assessee claimed that the non-compliance was due to reasonable causes, such as the illness of the accountant. The Tribunal found that the Assessing Officer did not grant sufficient time for compliance before proceeding with the ex parte assessment. As a result, the Tribunal set aside the ex parte assessment and directed the matter to be reconsidered by the Assessing Officer. In conclusion, the Tribunal allowed the assessee's appeal for statistical purposes, emphasizing the importance of providing reasonable opportunities to the assessee before making an ex parte assessment.
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