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Income Tax Appellate Tribunal, INDORE “SMC” BENCH, INDORE
Before: SHRI KUL BHARAT
Appellant by Shri A.G. Shastri, A.R. Respondent by Shri K.G. Goyal, Sr.D.R. Date of Hearing: 27.11.2019 Date of Pronouncement: 10.12.2019 आदेश / O R D E R PER KUL BHARAT, J.M: This appeal by the assessee is against order of the CIT(A)-2, Bhopal dated 13.12.2017 pertaining to the assessment year 2012-13. The assessee has raised following grounds of appeal:
[ITA No.260/Ind/2018] [Shri Kamlesh Kumar Agrawal, Indore]
[ITA No.260/Ind/2018] [Shri Kamlesh Kumar Agrawal, Indore]
The only effective ground is against sustaining addition of Rs.5,37,103/-. The facts giving rise to the present appeal are that case of the assessee was picked up for scrutiny assessment and the assessment u/s 143(3) of the Income Tax Act, 1961 (hereinafter called as ‘the Act’) was framed vide order dated 18.2.2015. While framing the assessment, the A.O. noticed that as per the 26AS details of assessee M/s. Lumbi Pumps Pvt. Ltd. having TAN No.BPLK03555G has collected TCS of Rs.5,371/- for transaction of Rs.5,37,103/- on 26.3.2012 being sale of flat to the assessee but during assessment proceedings, the assessee denied of having entered into such transaction.
To verify this fact summons were issued to the Principal Officer of Lumbi Pumps Pvt. Ltd. In pursuance to the summon u/s 131 of the Act, Shri Virender Singh Rajput, Accountant attended and filed reply. It was reiterated that company has sold scrap to the assessee. On the basis of [ITA No.260/Ind/2018] [Shri Kamlesh Kumar Agrawal, Indore] this, the A.O. made addition of Rs.5,37,103/-. Aggrieved against this, the assessee preferred appeal before Ld. CIT(A), who sustained this addition. Against this, the assessee is in appeal before this Tribunal. At the outset, Ld. Counsel for the assessee submitted that before authorities below, the assessee had categorically denied of having entered into such transaction. Further, he submitted that the A.O. without confronting and giving opportunity of cross examination to the assessee made addition. Hence, there is a clear violation of principle of natural justice.
Per contra, Ld. D.R. opposed these submissions.
I have heard the rival submissions, perused the materials available on record and gone through the orders of the authorities below. Undisputedly, the assessee has disputed of having entered into the cash transaction with [ITA No.260/Ind/2018] [Shri Kamlesh Kumar Agrawal, Indore] M/s. Lumbi Pumps Pvt. Ltd. Further, an affidavit has been filed by the assessee denying of having purchases of scraps from M/s. Lumbi Pumps Pvt. Ltd. the Ld. CIT(A) has decided the issue in para Nos.5.1 & 5.2 observing as under:
[ITA No.260/Ind/2018] [Shri Kamlesh Kumar Agrawal, Indore]
Since the A.O. had collected certain evidence from M/s. Lumbi Pumps Pvt. Ltd., it was incumbent upon the authorities below to confront the assessee and grant him cross examination to sub-serve the interest of principles of natural justice. I therefore, set aside the impugned order of Ld. CIT(A) and restore the issue to the file of the A.O. to decide it afresh after giving opportunity of cross
[ITA No.260/Ind/2018] [Shri Kamlesh Kumar Agrawal, Indore] examination to the assessee. Grounds raised in this appeal are allowed for statistical purposes.
In the result, the appeal filed by the assessee is allowed for statistical purposes.
Order was pronounced in the open court on 10.12.2019.