MANOJ KUMAR SINGHAL,DELHI vs. ACIT, CIRCLE 30(1), DELHI, NEW DELHI

On hearing both the sides, we find that amongst other grounds of appeal, the assessee has raised a ground that the impugned order of the NFAC is passed without giving opportunity of hearing. We find that the assessee had filed the return declaring an income of Rs.42,71,050/-. The AO has completed the assessment at an income of Rs.54,98,639/- after making an addition of Rs.12,27,589/- on account of alleged unexplained purchases u/s 69C of the Act. The ld. AR has filed before us copy of show cause notice issued by the AO to which a reply was filed submitting that the assessee is not aware of the source from which the AO has derived information about the alleged unexplained purchases. It appears that based on the invoice value of import shown in export- import data of CBIC, the AO had arrived at the conclusion of mismatch. However, without satisfying the assessee and providing information, the assessment was completed. In this background, we find that the order of the ld. NFAC merely mentions of the issuance of notices and without going on the merits and examination of the assessment records qua the grounds raised, has dismissed the appeal of the assessee.

In the light of the aforesaid, we are of the considered view that the matter requires to be examined in correct perspective by giving a fresh opportunity of hearing to the assessee by the AO himself. 3

Consequently, the ground No.1, 3, 4 and 5 are sustained. The appeal is allowed for statistical purposes. The impugned assessment is set aside with consequential effects and the issues on merits are restored to the files of the AO to give a fresh opportunity of hearing to the assessee as per law and decide the issues again.