M.S POWER MECH ENGINEERING CORPORATION,MUMBAI vs. ITO 26(2)(4), MUMBAI

O R D E R PER C.N. PRASAD (JM) 1. These appeal are filed by the assessee against different orders of the Learned Commissioner of Income Tax (Appeals)–38, Mumbai [hereinafter in short “Ld.CIT(A)”] dated 29.10.2018 for the Assessment Years 2010-11 & A.Y. 2014-15.

2. Assessee has raised the following grounds in its appeals: - A.Y. 2010-11

1. The Hon. CIT Appeal confirmed the action of learned assessing officer of adding back the entire purchase amount to "11,67,745/- alleging the same as purchase from Hawala Traders. He failed to appreciate the fact that the assessee was engaged in the business of civil construction and had 2 & 1640/MUM/2019 M/s. Power Mech Engineering Corporation made the purchases to execute work contract for government and non- government bodies.

5. Your Appellant prays to add, alter, modify or delete any or all of the above Grounds of Appeal

.” A.Y. 2014-15 “The case was selected for scrutiny under CASS in category of Limited Scrutiny and the reason for scrutiny was mismatch in sales as per ITR and as per Form 26AS The learned assessing officer was satisfied on this point and has made no additions in this regard The learned assessing officer further proceeded to cover the points which were not in the Limited Scrutiny Notice The learned assessing officer added the unpaid government liabilities of Rs 1999690 without appreciating the fact that the assessee had not debited VAT of Rs 912018 and Service Tax of Rs 1087672 to Profit and Loss Account and hence not disallowed in the Computation of Income. The Hon. CIT Appeal erred in confirming the additions On the facts and in circumstances of the case and in law the learned assessing officer erred in directing the charging of interest u/s.234A 234B and 234C of the Income Tax Act 1961 Your appellant denies any liability for payment of penalty and interest in respect of above additions Your Appellant prays to add alter modify or delete any or all of the above Grounds of Appeal”

3. In spite of issue of notice none appeared on behalf of the assessee. The notice was sent through RPAD to the address given by the assessee in Form No.36 which was returned unserved. Since the notice issued was returned unserved, we dispose off these appeals on merits on hearing the Ld.DR.

3 & 1640/MUM/2019 M/s. Power Mech Engineering Corporation 4. Heard Ld. DR, perused the orders of the authorities below. On a perusal of the Ld.CIT(A) order, I find that in both these appeals Ld.CIT(A) disposed off the appeals considering the statement of facts enclosed with Form No.35 without any physical appearance of appellant/Authorized Representative of the assessee. Considering the totality of facts and circumstances of the case and keeping in view the additions/disallowance made by the Assessing Officer, in the interest of justice I am of the opinion that assessee should be given one more opportunity of being heard. Thus, these appeals are restored to the file of the Ld.CIT(A) for denovo adjudication in accordance with law. Assessee shall cooperate with the proceedings before the Ld.CIT(A) without taking unnecessary adjournments. Thus, these appeals are restored to the file of the Ld.CIT(A) accordingly.