NEELKANTH PLYWOOD PVT. LTD.,NEW DELHI vs. ITO, WARD- 18(1), NEW DELHI

O R D E R PER AMIT SHUKLA, JM

The aforesaid appeal has been filed by the assessee against the impugned order dated 15.11.2018, passed by Ld. Commissioner of Income Tax (Appeals)-VI, New Delhi for the quantum of assessment passed u/s.147/143(3) for the Assessment Year 2009-10. In the grounds of appeal, the assessee has raised following grounds:-

1. That on the facts and circumstances of the case and the provision of the law the Ld CIT (A) has failed to appreciate that the order passed by the Ld AO under Section 147 r.w.s. 143(3) of the Income Tax Act is illegal and bad in law contrary to the facts on records.

2. That on the facts and circumstances of the case and the provision of the law the Ld CIT (A) has failed to appreciate that initiation of reassessment proceeding u/s 147 and issuance of notice u/s 148 is illegal and bad in law.

3. That on the facts and circumstances of the case and the provisions of law, the Ld CIT (A) has erred in sustaining an addition of Rs. 7,12,600/- on account of Share application money as cash credit u/s 68.

4. That on the facts and circumstances of the case and the provisions of law, the CIT (A) has failed to appreciate that various observations and findings of the Ld AO in the impugned assessment order are irrelevant, unjustified, baseless and vitiated in the law. 5. That the interest charged u/s 234A/ 234C is illegal and excessive. 6. That the appellant craves leave to reserve to it the right to add, alter, amend, vary, modify and/ or withdraw any ground(s) of appeal at or before the time of hearing.”

2. At the outset, it is seen that Ld. CIT (A) has passed an ex-parte order. In the body of the order, it has been mentioned that either adjournment was sought by the assessee or none attended on the date of hearing. Accordingly, ld. CIT (A) held that assessee is not interested in prosecuting the appeal. In this case, reopening has been done on the basis of information received from Investigation Wing that assessee has received share capital and share premium of Rs.7 lac through company named as VIP Leasing and Finance Pvt. Ltd. which was a company controlled by entry provider Shri S.K. Jain. After detailed discussion, ld. Assessing Officer has made addition of Rs.7 lac u/s.68.

3. Since, appeal has been decided ex-parte without considering the objection of the assessee against notice u/s.148 and various other documents on merit, therefore, in the interest of justice matter is remanded back to the file of the Ld. CIT(A) who shall decide the issue afresh on merits and in accordance with law after giving due and effective opportunity of hearing to the assessee.

Order pronounced in the open Court on 5th March, 2020.