ACIT, CORP CIR-2, COIMBATORE vs. LAKSHANA CONSULTANTS & HOTELIERS PVT LTD, COIMBATORE

This appeal filed by the Revenue is directed against the order of the Commissioner of Income-tax (Appeals)-1, Coimbatore dated 11.10.2018 for assessment year 2015-16.

The respondent, namely Lakshana Consultants & Hotelliers Pvt. Ltd. is a company incorporated under the provisions of the Companies Act, 1956. It is engaged in the business of running hotels and consultancy services. The return of income for the AY 2015-16 was filed on 29.09.2015 disclosing total income of Rs. 82,96,410/-. Against the said return of income, the assessment was completed by the Assistant Commissioner of Income Tax, Corporate Circle-2, Coimbatore (hereinafter called “AO”) vide order dated 30.12.2017 passed u/s. 143(3) of the Income Tax Act, 1961 (in short ‘the Act’) at total income of Rs.10,52,96,411/- after making addition u/s.68 of the Act on account of receipt of share amount of Rs.9,70,00,000/- on the ground that the assessee had failed to prove the genuineness and credit worthiness of the investors. Being aggrieved, an appeal was preferred before ld. CIT(A), ), who vide impugned order directed the Assessing Officer to delete the addition based on the information filed before him. Being aggrieved, the Revenue is in appeal before us.

It is contended by the ld. Senior D.R that the ld.CIT(A) has accepted new additional evidences in violation of provisions of Rule 46A of the Income Tax Rules, 1962 and allowed the appeal. Therefore, it is prayed tht the matter has to be restored to the file of ld.CIT(A).

On the other hand, the ld.AR relied on the order of ld.CIT(A).

We have heard the rival contentions and perused the material available on record. Admittedly, ld.CIT(A), considering the additional evidence filed before him, granted relief to the assessee. This is evident from reading of para-7 of the C.I.T(A)’s order. The violation of provisions of Rule-46A is manifest and therefore, we are of the opinion that the matter should be remitted back to the file of Assessing Officer for denovo assessment in accordance with law after affording due opportunity of being beard to the assessee.

In the result, the appeal of Revenue is partly allowed for statistical purposes.