PRADHAN TRANSPORT PVT. LTD.,CUTTACK vs. ACIT CIRCLE -1(1), CUTTACK

It was the submission of the ld. AR that the issue in this appeal was in respect of two additions representing loss & damages and bad debt. It was the submission that in appeal before the ld. CIT(A) though substantial documents have been produced, however, the ld. CIT(A) in para 5.3 of his order has held that “in absence of any concrete documentary evidence, the appeal cannot be adjudicated and, therefore, additions made by the ld. AO is upheld. It was the submission that if the ld. CIT(A) was not satisfied with the evidence as produced, then it was incumbent upon the ld. CIT(A) to intimate the same to the assessee in regard to the documents required to be produced. It was the submission that the assessee has no objection if the issues are restored to the file of ld. CIT(A) for readjudication after granting the assessee adequate opportunity of being heard.

In reply, ld. Sr. DR vehemently supported the orders of the ld. AO and ld. CIT(A).

We have considered the rival submissions. A perusal of the order of the ld. CIT(A) shows that the order of the ld. CIT(A) is not a speaking order. Hearing on an appeal does not mean blindly adjudicated on the basis of just the evidence as produced by the assessee. In an appellate proceeding, it would be necessary to call for documents if any that are required for examination of the submissions of the assessee. It is an admitted fact that the proceedings before the ld. CIT(A) is an extension of the assessment proceedings. It does not do well in the eyes of the natural justice to simply dismiss the appeal of the assessee by a single line stating that there is absence of any concrete documentary evidence. If the ld. CIT(A) required further evidence, it was incumbent upon the ld. CIT(A) to intimate the assessee that the evidence submitted by the assessee needs to be further substantiated. In these circumstances, it is noticed that the order of the ld. CIT(A) is a non-speaking order. Therefore, issues in this appeal are restored to the file of ld. CIT(A) for readjudication after granting the assessee adequate opportunity of being heard.