MANOHAR LAL & SONS,DELHI vs. ITO WARD-63(3), NEW DELHI

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ITA 1210/DEL/2019Status: DisposedITAT Delhi17 November 2020AY 2008-093 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal restored the issue to the file of the CIT(A) to grant one final opportunity to the assessee to substantiate its case. The assessee was directed to appear before the CIT(A) and present its arguments.

What were the facts?

The assessee, a partnership firm, filed its return of income. The AO completed the assessment and made an addition of Rs. 10,27,531/- on account of bogus purchases. The CIT(A) upheld this addition in an ex parte order.

What were the issues?

Whether the addition on account of bogus purchases was justified, considering the assessee did not appear before the CIT(A) and the order was passed ex parte.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 147

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCHES : G : NEW DELHI

Before: SHRI R.K. PANDA & MS SUCHITRA KAMBLE

For Respondent: Shri Ajay Kumar, Sr.DR
Hearing: 17.11.2020Pronounced: 17.11.2020

ORDER

PER R.K. PANDA, AM:

1.

This appeal filed by the assessee is directed against the ex parte order dated 16th January, 2019 of the CIT(A), New Delhi, relating to assessment year 2008-09.

2.

The assessee in its various grounds of appeal has challenged the order of the CIT(A) in sustaining various additions made by the AO.

3.

Facts of the case, in brief, are that the assessee is a partnership firm and filed its return of income on 27th September, 2008 declaring total income at Rs.46,190/- . The AO completed the assessment u/s 143(3)/147 of the Act on 15th March, 2016, determining the total income of the assessee at Rs.10,73,720/- wherein he made addition of Rs.10,27,531/- on account of bogus purchases. In appeal, the ld.CIT(A) in the ex parte order passed by him, upheld the addition made by the AO.

4.

Aggrieved with such order of the CIT(A), the assessee is in appeal before the Tribunal.

5.

We have heard the rival arguments made by both the sides and perused the orders of the authorities below. It is an admitted fact that due to non-appearance before the CIT(A), the ld.CIT(A), in the ex parte order, sustained the addition made by the AO on account of bogus purchases. Considering the totality of the facts of the case and in the interest of justice, we deem it proper to restore the issue to the file of the CIT(A) with a direction to grant one final opportunity to the assessee to substantiate its case and decide the issue as per fact and law. The assessee is also hereby directed to appear before the ld.CIT(A) and substantiate its case, failing which the ld.CIT(A) is at liberty to pass appropriate order as per law. We hold and direct accordingly. The grounds raised by the assessee are accordingly allowed for statistical purposes.

6.

In the result, the appeal is allowed for statistical purposes.

Decision was pronounced on conclusion of Virtual Hearing on 17th November, 2020 itself.

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