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Income Tax Appellate Tribunal, DELHI BENCH ‘G’ : NEW DELHI
Before: SHRI R.K.PANDA & SHRI KULDIP SINGH
IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH ‘G’ : NEW DELHI) BEFORE SHRI R.K.PANDA, ACCOUNTANT MEMBER AND SHRI KULDIP SINGH, JUDICIAL MEMBER ITA No.40/Del./2017, A.Y. 2012-13 Sh. Sidhdata Steel Tubes Vs. ITO 307, 3rd Floor, Ward-59(4) 79, Shyam Lal Road, Daryaganj New Delhi Delhi PAN : AAOFS3736K (APPELLANT) (RESPONDENT) ASSESSEE BY : Sh. Rajat Gupta, CA REVENUE BY : Shri S.S.Rana, CIT(DR) Date of Hearing : 27.11.2019 Date of Order : 29.11.2019
O R D E R
PER KULDIP SINGH, JUDICIAL MEMBER :
The appellant Sh. Sidhdata Steel Tubes, Delhi (hereinafter referred to as 'the assessee’) by filing the aforesaid appeal, sought to set aside the impugned order dated 02/08/2016 passed by Ld. Commissioner of Income Tax(Appeals)-19, New Delhi qua the Assessment Year 2012-13 on the grounds inter alia that :
1) On the facts and in the circumstances of the case and in law, the Ld. CIT (A) was incorrect and unjustified in: a) In restricting the addition to Rs. 4,79,08,680/- In place of addition of Rs. 7,18,83,692/- incorrectly and unjustifiably made by the AO. b) In restricting the disallowance to 5% in respect of the remaining expenses as against addition of Rs. 7,09,661/- c) In enhancing the addition of Rs. 61,53,954/- to Rs. 1,24,37,720/- without any reason or basis and evidence and also without opportunity. d) In restricting the addition of Rs. 12,69,185/- to Rs. 12,44,585/- without any reason or basis and evidence and also without opportunity.”
Briefly stated the facts necessary for adjudication of the controversy at hand are : The assessing officer framed assessment u/s 144 of the Income Tax Act by making addition of Rs. 7,18,83,792/- on account of failure of the assessee to prove genuineness of the sundry creditors, identity, creditworthiness and genuineness of the loans. AO also made addition of Rs. 7,09,661/- on account of disallowance to the tune of 20% of the total expenses being unverifiable / unexplained. AO made addition of Rs. 61,53,954/- on account of disallowance of interest calculated at the rate of 14.48% on the free loan and advances lent by the assessee.
AO also made addition of Rs. 12,69,185/- claimed by the assessee being the amount payable on failure of the assessee to provide details explanation.
Assessee carried the matter before Ld. CIT(A) by way of filing the appeal who has decided the appeal ex parte on failure of the assessee to put in appearance. Feeling aggrieved the assessee has come up before the Tribunal by way of filing the present appeal.
We have heard the ld. DR, gone through the documents relied upon and orders passed by the revenue authorities below in the light of the facts and circumstances of the case.
Bare perusal of the impugned order passed by Ld. CIT(A) goes to prove that service of the assessee is reportedly effected through affixture as the premises of the assessee was found locked by the Income Tax Inspector. No doubt, the CIT(A) has decided the appeal on merit but we are of the considered view that since all the additions on account of sundry creditors and on account of disallowance of expenses are required to be decided only after going through the documents to be produced by the assessee who has not appeared either before AO or before Ld. CIT(A), the matter is required to be set aside to the AO to decide the issue once for all by providing an opportunity of being heard to the assessee. Ld. AR for the assessee made a contention that one opportunity may be granted to substantiate its claim.
In view of what has been discussed above, we set aside the case back to Ld. CIT(A) to decide afresh after providing opportunity of being heard to the assessee. However, it is made clear that assessee shall put in appearance before Ld. CIT(A) on 8th April, 2020 and no notice is required to be issued by Ld. CIT(A) to proceed further. Consequently appeal filed by the assessee is allowed for statistical purpose. Order pronounced in open court on this 29th November, 2019.