NARESH TEXTILES,BHIWANDI vs. INCOME TAX OFFICER WARD 1(1), KALYAN

Per: Smt. Beena Pillai, J.M.:

The present appeal filed by the assessee arises out of order dated 21/03/2015 passed by Ld.CIT(A), Kochi for assessment year 2012-13 on following grounds of appeal :
“
The grounds of appeal mentioned hereunder are without prejudice to one another:-
1) On facts and circumstances of the case and in law, the order passed by the Learned CIT(A) u/s 250 upholding the order passed by A.O. u/s 144 is invalid and void ab initio and against the 2
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Naresh Textiles principle of natural justice and requires to be set aside and adjudicate the case on merit. The CIT(A) has passed the order ex- parte without going into merits of the case and without providing adequate opportunity of being heard.
2) On facts and circumstances of the case and in law, the Learned
CIT(A) has erred in upholding that the appellant has taken accommodation entry of Rs.9,04,500 from M/s Mahadev Textiles prop. Rohit Purohit without appreciating that the business of M/s
Naresh Textiles was closed during the F.Y.2010-11. 3) On facts and circumstances of the case and in law, the Learned
CIT(A) has erred in upholding the addition of Rs.904500 merely because the the name of appellant is shown as Sundry debtors in the Balance Sheet of M/s Mahadev Textiles without bringing any evidence on record.
4) On facts and circumstances of the case and in law, the Learned
CIT(A) has erred in upholding the addition of Rs.9,04,500 u/s 68 of the Act as unexplained credit.
5) The appellant craves the leave to add, alter, delete or modify any ground of appeal before or during the hearing of appeal.”
Brief facts of the case are as under:
2. The assessee is a partnership firm and was engaged in the business of Textiles Commission Business. It was submitted that the assessee suspended its business activity from financial year
2010-11 relevant to assessment year 2011-12. The assessee therefore did not file its return of income for the year under consideration, as there were no sales purchases or any activity carried out.
2.1 Assessment of the assessee was reopened by issuing notice u/s.148 on 30/03/2019 based on information received from DDIT investigation unit Mumbai, wherein it was informed that, the assessee is a beneficiary of accommodation entry of Rs.
9,04,000/-. The information was shared with the assessing

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Naresh Textiles officer based on the statement of Rohit Purohit Proprietor of concerns being Mahadev Textile and M/s. Mangal Shri Creation that were found to be paper companies. It was informed that the name of assessee was found in the balance sheet of M/s.
Mahadev Textile as debtor to that extent. The Ld.AO accordingly issued notice u/s. 133(6) of the Act to Rohit Purohit but the notice was return unnerved the assessee was also summoned u/s.131 of the Act, but failed to appear on the date. The Ld.AO thus completed the assessment by making addition u/s.68 of the Act as unexplained cash credit amounting to Rs. 09,04,500/- in the hands of the assessee.
Aggrieved by the order of the Ld.AO assessee preferred appeal before the Ld.CIT(A).
3. Before the Ld.CIT(A) the assessee was issued notices on various dates which was not complied. The Ld.CIT(A) thus confirm the addition made by the Ld.AO.
Aggrieved by the order of the Ld.CIT(A) the assessee is in appeal before this Tribunal.
4. The Ld.AR at the time of hearing filed various documents along with written submission challenging addition the assessment based on the evidences that there is no deposit of Rs.
09,04,500/- in the books of the assessee in any form during year under consideration.
4.1 The Ld.DR objected, as these documents were never filed before the authorities below and amounts to additional evidence.
5. On perusal of the documents furnished, it is noted that the assessee filed profit and loss accounts balance sheet for the year

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Naresh Textiles under consideration as well as immediately preceding assessment year, copies of the ITR acknowledgement, computation total income, and copy of bank statements to support assessee contention. However, the same was never filed before the authorities below.
5.3 In my view the said documents require necessary verification at the end of the Ld.AO. In the interest of justice, I remit this issue back to the Ld.AO to carried out denovo verification based on the evidences furnished by the assessee.
Needless to say that proper opportunity of being heard must be granted to assessee in accordance with law. The assessee is directed to respond to notice issued by the Ld.AO to present its case in respect of the claim.
Accordingly the grounds raised by the assessee stands partly allowed for statistical purposes.
In the result the appeal filed by the assessee stands partly allowed for statistical purposes.
Order pronounced in the open court on 28/08/2025 (BEENA PILLAI)

Judicial Member
Mumbai:
Dated: 28/08/2025
Poonam Mirashi,
Stenographer
Copy of the order forwarded to:
(1)The Appellant
(2) The Respondent
(3) The CIT
(4) The CIT (Appeals)

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Naresh Textiles
(5) The DR, I.T.A.T.By order

(Asstt.