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Income Tax Appellate Tribunal, DELHI BENCH “A” DELHI
Before: SHRI CHALLA NAGENDRA PRASAD & SHRI PRADIP KUMAR KEDIA
O R D E R PER PRADIP KUMAR KEDIA, A.M.: The captioned appeal has been filed at the instance of the assessee against the order of the Commissioner of Income Tax (Appeals), Ghaziabad [‘CIT(A)’ in short] dated 31.05.2019 arising from the assessment order dated 12.12.2017 passed by the Assessing Officer (AO) under Section 143(3) of the Income Tax Act, 1961 (the Act) concerning AY 2015-16.
The assessee in its appeal has challenged additions of Rs.77,41,110/- made by the Assessing Officer casting aspersions on the genuineness/worthiness of the creditors appearing in the books.
The CIT(A) in the first appeal has passed ex-parte order and 3. denied relief to the assessee.
Heard and perused the record.
5. On perusal of the order of the CIT(A), it is noticed that the CIT(A) has passed ex-parte order on account of failure of the assessee to prosecute the appeal despite four opportunities. The CIT(A) himself has noted that the CIT(A) has responded to the assessee and filed adjournment letters through e-mail. The CIT(A) however rejected the adjournment on the ground that no medical certificate has been filed to substantiate the adjournment request. The CIT(A) accordingly dismissed the appeal of the assessee for want of prosecution in the light of the decision rendered by the Tribunal in CIT vs. Multiplan India Pvt. Ltd., 38 ITD 320 (Del).
On merits, the CIT(A) simply observed that on inquiry conducted by the Assessing Officer, the genuineness of the transactions and also the creditworthiness of the letters are found unverifiable and bogus. The CIT(A) simply placed reliance upon the observations of the Assessing Officer without adding anything of its own. At the time of hearing, however it was submitted on behalf of the assessee that the liability has been discharged by way of payment or by way of write back in the subsequent assessment years and therefore, the tax has been collected on such credit eventually.
Keeping in mind the assertions made on behalf of the assessee that the liability has been written back/paid and also having regard to the fact that CIT(A) has passed ex-parte order primarily for want of prosecution without dealing on merits, we consider it expedient to set aside the order of the CIT(A) and restore the issue back to the file of the Assessing Officer for suitable verification of facts on factum of repayment and / or write back.
Without any expression on merits, we thus restore the issue back to the file of the Assessing Officer for fresh determination of issue in the light of the evidences that may be adduced by the assessee and such information / explanation provided by the assessee to the Assessing Officer. It shall be open to the Assessing Officer to make such inquiry as may be considered expedient for determination of the issue afresh. The assessee is cautioned to respond to the queries of the Assessing Officer in this regard and extend full co-operation. The order of the CIT(A) is thus set aside.
In the result, the appeal of the assessee is allowed for statistical purposes.