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Facts
The assessee filed a return declaring income of Rs. 42,71,050. The AO completed the assessment at Rs. 54,98,639, adding Rs. 12,27,589 on account of unexplained purchases, allegedly based on export-import data from CBIC. The assessee contended that they were unaware of the source of this information.
Held
The Tribunal found that the NFAC dismissed the appeal without going into the merits or examining the assessment records. It held that the matter requires examination with a fresh opportunity of hearing to the assessee.
Key Issues
Whether the assessment order was passed without providing adequate opportunity of hearing and whether the additions on account of unexplained purchases were justified.
Sections Cited
143(3), 69C
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCHES: E : NEW DELHI
Before: SHRI SHAMIM YAHYA & SHRI ANUBHAV SHARMA
Assessment Year: 2017-18 Manoj Kumar Singhal, Vs ACIT, 132, Mohammadpur, Circle-30(1), Nauroji Nagar, Delhi. South West Delhi, Delhi – 110 029. PAN: APGPS7268P (Appellant) (Respondent) Assessee by : Shri Pranav Yadav, Advocate Revenue by : Shri Dheeraj Kumar Jain, Sr. DR Date of Hearing : 02.06.2025 Date of Pronouncement : 02.06.2025 ORDER
PER ANUBHAV SHARMA, JM:
This appeal by the appellant assessee is against the order dated 16.10.2024 of the Ld. Commissioner of Income-tax (Appeals), NFAC, Delhi (hereinafter referred to as the Ld. First Appellate Authority or ‘the Ld. FAA’, for short) in Appeal No.CIT(A), Delhi-10/10980/2019-20 arising out of the appeal before it against the order dated 12.12.2019 passed u/s 143(3) of the Income Tax Act, 1961 (hereinafter referred as ‘the Act’) by the ACIT, Circle- 30(1), Delhi (hereinafter referred to as the Ld. AO).
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. 2
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.