UMED SINGH CHOUDHARY,VIRAR EAST vs. WARD WARD 33(3)(3), MUMBAI, KAUTALIYA BHAVAN

O R D E R

PER GIRISH AGRAWAL, ACCOUNTANT MEMBER:

1) The learned Assessing Officer Treated Rs.2,09,53,866/- of Sundry Creditors as unproved Sundry Creditors. The learned Assessing Officer added Rs. 2,09,53,866/- of Sundry Creditors in our Income from Business

2) Your petitioner craves leave to add, alter, amend and/or withdraw any/or all the above grounds of appeal.

3. At the outset, from the perusal of order of Ld. CIT(A), we note that it has been passed ex-parte owing to non-prosecution. Ld. CIT(A) tabulated various notices issued for fixing date of hearing which remained unattended by the assessee. He noted that assessee did not file any written submission and has not responded to any of the notices. Hence constrained by non-earnestness and non-seriousness on the part of the assessee in prosecuting, Ld. CIT(A) dismissed the appeal as due to non-prosecution without dealing on the merits of the case.

3.1 On this observation Ld. Counsel of the assessee referred to paper book containing 116 page placed on record to evidently demonstrate that all the submissions were made including that during the course of physical hearings. Physical submissions is under acknowledgement from the office of Ld. CIT(A)-45, Mumbai, with date stamp of 17.09.2019. He further pointed out to letter furnished before Ld. CIT(A) with date stamp of 20.06.2019 whereby adjournment was sought by the authorised representative of the assessee. He also referred to submissions made on 12.09.2019 and 18.07.2019. According to him all these submissions have been ignored and not considered while dismissing the appeal for non-prosecution, more particularly when there is a dated acknowledged stamp on the submissions of 17.09.2019 which contains additional evidences as per rule 46A of the Income-tax Rules, 1962.

Umed Singh Choudhary, AY 2016-17 3.2 Ld. Counsel also referred to impugned assessment order to demonstrate that assessee had furnished the required details in the course of assessment proceedings, facts of which is noted by the Ld. AO. In the course of assessment, enquiries were made in respect of sundry creditors reported in the balance sheet as on 31.03.2016 amounting to Rs. 3,20,29,966/-. After considering the submissions made by the assessee, it is that out of the total said creditors, he accepted the amount of Rs. 1,10,76,100/- in respect of those creditors which were duly verified and found to be in order. For the remaining cases amounting to Rs. 2,09,53,866/-, he made the addition holding them as unproved sundry creditors under the head business income.

3.3 Case of the assessee is that since the matter has not been adjudicated on merits by Ld. CIT(A), ignoring various submissions already on record, it may be restored back to the file of Ld. CIT(A) for de novo adjudication.