I.B.COMMERCIAL PRIVATE LIMITED,MUMBAI vs. DCITA CENTRAL CIRCLE-3(3), MUMBAI

The assessee has filed appeals for AY 2009-10 and 2014-15. The revenue has filed appeal for AY 2014-15.

None appeared on behalf of the assessee. We notice that the notices were issued to the assessee several times on earlier occasions, but there was no response from the assessee. Hence we proceed to dispose of the appeals ex-parte, without presence of the assessee.

We shall first take up the appeal filed by the assessee for AY 2009-10. The assessee has contended that the AO has not issued notice u/s 143(2) of 2 M/s. I.B. Commercial Pvt. Ltd.

The next issue contested by the assessee relates to the addition of Rs.29.34 lakhs on account of alleged unexplained expenditure on the basis of seized material. We notice that the assessee did not properly co-operate before the AO during the course of assessment proceedings. Further, the assessee has stated before Ld CIT(A) that the show cause issued by the AO was unclear. However, the Ld CIT(A) proceeded to confirm the addition made by the AO. Thus, we notice that the assessee did not get enough opportunity to present its case properly before Ld CIT(A). Accordingly, in the interest of natural justice, we are of the view that the assessee should be provided with one more opportunity. Accordingly, we set aside the order passed by Ld CIT(A) on this issue and restore the same to his file for examining it afresh. After affording adequate opportunity of being heard, the Ld CIT(A) may take appropriate decision in accordance with law.

We shall now take up the appeal filed by the assessee for AY 2014-15. In this year also, the assessee is contending that notice u/s 143(2) has been issued before filing return of income. However, the AO has reported that the notice u/s 143(2) of the Act has been issued after filing of return of income by the assessee. Hence we do not find any merit in this ground of the assessee.

The assessee has raised following grounds on merits:- (a) Additions on account of unaccounted cash receipts partially sustained by Ld CIT(A) in respect of Khumbarwada project.

We notice that the assessee has not fully co-operated with the AO during the course of assessment proceedings, which has led to making above said additions. Before Ld CIT(A), the assessee has made certain submissions and we notice that the Ld CIT(A) has confirmed the additions. It is the case of the assessee that it did not get proper opportunity to explain its case in respect of above said issues. Accordingly, in the interest of natural justice, we are of the view that the assessee should be provided with one more opportunity. Accordingly, we set aside the order passed by Ld CIT(A) on this issue and restore the same to his file for examining it afresh. After affording adequate opportunity of being heard, the Ld CIT(A) may take appropriate decision in accordance with law.

We shall now take up the appeal filed by the revenue for AY 2014-15. The revenue is contesting the relief granted by Ld CIT(A) in respect of unaccounted receipts on Kumbharwada project. In the preceding paragraphs, we have already restored this issue to the file of Ld CIT(A). Accordingly, the first appellate authority may take fresh decision after affording adequate opportunity of being heard to the assessee.

In the result, both the appeals of the assessee are treated as partly allowed for statistical purposes. The appeal of the revenue is treated as allowed for statistical purposes.