DCIT, CENTRAL CIRCLE-II, FARIDABAD vs. KALAKRITI ENGINEERING INDIA LTD, FARIDABAD

The cross appeals by the Revenue and the assessee are directed against the order of Commissioner of Income Tax (Appeals)-2, Gurgaon (hereinafter referred to as 'the CIT(A)') dated 27.02.2018, for assessment year 2008-09.

Dr. Rakesh Gupta, appearing on behalf of the assessee submits at the outset that the CIT(A) vide order dated 27.02.2018 has disposed of multiple appeals by different assessee's. The CIT(A) in a mechanical manner has partly allowed the appeal of assessee without appreciating facts of the assessee’s case. He further submitted that findings of the CIT(A) are ambiguous, hence, appeal of the assessee has to be restored back to the CIT(A) for fresh adjudication. The ld. Counsel submitted that a search and seizure action was carried out on M/s. SRS Group. The name of assessee was linked to said group and the assessee was alleged to be one of the beneficiaries of bogus entries provided by SRS Group companies. The AO made addition of Rs.4,00,00,000/-, out of which Rs.2,20,00,000/- addition was on substantive basis and addition of Rs.1,80,00,000/- was on protective basis, substantive addition of the said amount was made in the hands of SRS International Ltd. The CIT(A) on the one hand partly allowed the appeal of assessee and on the other confirmed addition of Rs.3,55,00,000/- on substantive basis. Findings of the CIT(A) are self contradicorty.

The ld. DR endorsed the statement made by ld. Counsel for the assessee and prayed for similar relief in Department's appeal. 4. Both sides heard. Considering the fact that findings of the CIT(A) in appeal by the assessee are inconsistent and cryptic, we deem it appropriate to restore & 3351/Del/2020 (AY 2008-09) cross appeals back to the CIT(A) for fresh adjudication after affording reasonable opportunity of making submissions to the assessee, in accordance with law.