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Income Tax Appellate Tribunal, “C”, BENCH MUMBAI
Before: SHRI G. MANJUNATHA & SHRI RAM LAL NEGI
Date of Hearing 23/07/2019 Date of Pronouncement 23/07/2019 आदेश आदेश / O R D E R आदेश आदेश PER G.MANJUNATHA (A.M):
This appeal filed by the assessee is directed against the order of the Commissioner of Income Tax Appeals–37, Mumbai dated 08/09/2016 and it pertains to the Assessment Year 2011-12. The assessee has raised the following grounds of appeal:-
1. On the facts and in the circumstances of the case, the Ld. C.I.T.(A) erred in confirming additions aggregating to Rs. 86,68,093/-
2. On the fads and in the circumstances of the case , the Ld, CIT (A) erred in confirming disallowance of purchases made from M/s. Real Traders of Rs. 9,47,745/- on the ground that the name of suppliers figured in the list of suspicious dealers on the web site of Sales Tax Department, Maharashtra.
3. On the foots and in the circumstances of the case me Ld. CIT (A) erred in confirming disallowance of purchases made from M/s. Shreeji Trading Co of Rs. 11,47,152/- on the ground that the party did not responded to the notices send under section 133(6),
4. On the feels and in the circumstances of the case , me Ld. CIT (A) erred in confirming the addition of Rs. 65,73,196/- towards loan front M/a Paramount Infra Projects on the gerund that me party has made losses in the assessment year.
The Appellant craves to add, alter or delete all or modify any or all the above grounds of appeal 2. The brief facts of the case are that the assessee is a partnership firm, engaged in the business of contractor for civil works filed its return of income for AY 2011-12 on 25/09/2011 declaring total income at Rs. 42,36,900/-. The case was selected for scrutiny and the assessment was completed u/s 143(3) of the I.T.Act, 1961 on 28/03/2014, determining the total income at Rs. 1,29,04,997/-, after making additions towards disallowance of bogus purchase and unverified purchases u/s 69C of the I.T.Act, 1961, and also disallowance of unproved unsecured loans. The assessee carried the matter in appeal before the Ld.CIT(A). Before the Ld.CIT(A), the assessee neither appeared nor filed any details, despite various dates of hearing provided by the Ld.CIT(A). Therefore the Ld.CIT(A) has disposed-off appeal filed by the assessee ex-parte for non prosecution of appeal and upheld additions made by the AO towards bogus as well as unproved purchases u/s 69C of the I.T.Act, 1961 and also unexplained cash credit being unsecured loan taken from M/s.
Paramount Infra Project. Aggrieved by the Ld.CIT(A) order, the assessee is in appeal before us.
We have heard both the parties, perused the material available on record and gone through orders of the authorities below. We find that the Ld.CIT(A) has disposed-off appeal filed by the assessee ex-parte for non prosecution of appeal, on the ground that in spite of allowing number of opportunities to the assessee on various dates, the assessee could not availed opportunities provided to furnish necessary details to justify its case. We, further noted that the Ld.CIT(A) has given more than seven days of hearing, but the assessee neither appeared nor filed any details.
Therefore, he opined that the assessee is not interested in prosecution of its appeal and accordingly, dismissed appeal filed by the assesee without discussing the issues involved on merits. The Ld. AR for the assessee submitted that although, the assessee has not appeared before the CIT(A), but it has a strong case on merits, in respect of additions made by the AO towards bogus and unproved purchases and also unexplained credits being unproved unsecured loans, therefore one more opportunity may be given to go back to the Ld.CIT(A) to explain its case. The Ld. DR present for the revenue, fairly accepted that the issue may be set aside to the file of the CIT(A) to decide the issues on merits. We, therefore, considering the facts and circumstances of this case and also on the basis of agreement of both counsels, set aside the appeal to the file of the CIT(A) to decide issue involved on merits. Needless to say, the assessee is directed to file necessary evidences before the Ld.CIT(A) without seeking any adjournment. In case, the assessee seeks adjournment without any valid reason, the Ld.CIT(A) is free to dispose-off the appeal of the assessee on the basis of information available on record.
In the result, the appeal filed by the assessee is allowed for statistical purpose.
Order pronounced in the open court on this 23/07/2019