MEDHA DAIRY PVT. LTD.,GUNTUR vs. ACIT, CENTRAL CIRCLE-1(2), CHENNAI

0 At the outset the Ld. Counsel for the assessee stated that the common controversy raised through the impugned grounds of appeal in the ITA 1920/Chny/2024 and ITA 1921/Chny/2024 2016-17 and 2017-18 respectively is that no effective and adequate opportunity of being heard was granted by the lower authorities which has resulted in violation of principles of natural justice. It has been argued that additions have been made in the hands of the assessee on the basis of third party statements without affording the mandatory opportunity of cross examination of the said party. Reportedly, the impugned parties whose statements have been relied upon by the Ld. AO were under judicial custody at the opportune time. The Ld. Counsel, placing reliance upon the decision of Hon’ble Coordinate Bench of this tribunal in ITA No.718/Chny/2020 dated 21.12.2023, contended that the case of partners of assessee firm, deeply embroiled in the controversy, have been set aside to the file of the Ld. AO for fresh adjudication after giving adequate opportunity of being heard to the assessee. It was therefore argued that in the interest of a comprehensive examination of the varied facts of the case involving different stake holders at the level of the ITA No.1920 & 1921/Chny/2024

0 We have heard rival submissions in the light of material available on records. After hearing rival contentions and considering the overall background of this case we deem it fit, in the interest of justice, to remit the issue back to the Ld.Assessing Officer for fresh examination. The assessee shall be required to place all materials deemed necessary before the Ld.AO and comply to Ld.AO’s requirement as per law. The Ld. AO is free to conduct appropriate enquiries in the case, as deemed fit, without being guided by any observations made by his predecessor AO or Ld.First Appellate Authority. The Ld. AO shall furnish adequate opportunity of being heard, on the material etc, to be used against it and decide the matter in accordance with law. Accordingly, the order of the Ld.CIT(A) and Ld.AO are set aside and the issue is remitted back to the file of the Ld.AO for fresh adjudication

0 In the result, the appeals of the assesee are decided as under:- ITA Nos Assessment Year Result ITA 1920/Chny/2024 2016-17 Allowed for Statistical Purposes ITA 1921/Chny/2024 2017-18 Allowed for Statistical Purposes