P.MANGATRAM JEWELLERS PRIVATE LIMITED,HYDERABAD vs. DY. COMMISSIONER OF INCOME TAX, CIRCLE-16(2), HYDERABAD

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ITA 527/HYD/2019Status: HeardITAT Hyderabad05 May 2021AY 2009-102 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal found that the CIT(A) order was ex-parte and lacked merit-based discussion. Therefore, the case was remanded to the CIT(A) for a fresh consideration after providing the assessee a fair opportunity of hearing.

What were the facts?

The Assessing Officer made an addition of Rs. 8,61,824/- towards bogus purchases. The assessee contended that they provided purchase vouchers and bank statements but were denied the opportunity to cross-examine the party on whose statement the purchases were deemed bogus.

What were the issues?

Whether the CIT(A) erred by passing an ex-parte order without considering the merits of the case and the assessee's right to cross-examine. Whether the assessee was denied a fair opportunity of hearing.

Which sections of the Income-tax Act were involved?

Section 250

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, Hyderabad ‘ B ‘ Bench, Hyderabad

Before: Smt. P. Madhavi Devi & Shri A. Mohan Alankamony

Hearing: 28/04/2021Pronounced: 05/05/2021

This is assessee’s appeal for the A.Y 2009-10 against the order of the CIT (A)-4, Hyderabad, dated 11.2.2019.

2.

At the outset, it is seen that the order of the CIT (A) is ex-parte the assessee and there is no discussion on merits.

3.

In the assessment order, the Assessing Officer has made an addition of 8,61,824/- towards bogus purchases and the assessee had filed an appeal before the CIT (A) stating that the purchase vouchers along with Bank statement and copy of the return were produced by the assessee before the Assessing Officer, but the assessee was not given an opportunity to cross examine the party on whose statement, the Assessing Officer has placed reliance upon to hold the purchases to be bogus.

4.

Since the CIT (A) has not decided the appeal on merits, only in the interest of justice, we deem it fit and proper to remand the issue to the file of the CIT (A) with a direction to consider the issue afresh after giving the assessee a fair opportunity of hearing.

5.

In the result, assessee’s appeal is treated as allowed for statistical purposes. Order pronounced in the Open Court on 5th May, 2021.

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