VALLEY OIL MILLS PRIVATE LIMITED,JAMMU vs. DEPUTY COMMISSIONER OF INCOME TAX CIRCLE-1, JAMMU
Facts
The assessee's case for AY 2013-14 was reopened under Section 147 alleging accommodation purchases, leading to an addition of Rs. 128.96 Lacs by the AO without properly considering the assessee's submissions. The CIT(A) confirmed this assessment, citing the assessee's request for adjournments, despite the assessee having furnished voluminous documents.
Held
The Tribunal found that the assessment was framed cryptically without due consideration of the assessee's substantial documentation regarding the impugned purchases. Consequently, the orders of the lower authorities were set aside, and the AO was directed to conduct a de novo assessment, providing the assessee an opportunity to present and prove its case.
Key Issues
Whether the lower authorities erred in making an addition for accommodation purchases without properly considering the assessee's voluminous submissions, leading to a cryptic assessment.
Sections Cited
Section 147, Section 144B
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, ‘DB’, AMRITSAR BENCH, AMRITSAR
Before: HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM & HON’BLE SHRI UDAYAN DAS GUPTA, JM
Manoj Kumar Aggarwal (Accountant Member) Aforesaid appeal by assessee for Assessment Year (AY) 1. 2013-14 arises out of an order of Ld. Commissioner of Income Tax (Appeals), NFAC [CIT(A)] dated 11-12-2024 in the matter of an assessment framed by Ld. AO u/s 147 r.w.s. 144B of the Act on 24-02-2022. The Ld. AR, at the outset, sought de novo assessment on the ground that though sufficient documents were submitted by the assessee, the same were not considered by Ld.
AO and the assessment has been framed in a cryptic manner. The Ld. Sr. DR pleaded for dismissal of the appeal.
Upon perusal of assessment order, it could be seen that assessee’s case was reopened on the allegation of accommodation purchases. The Ld. AO, without due consideration of assessee’s submissions, added the amount of Rs.128.96 Lacs to the income of the assessee. The Ld. CIT(A) confirmed the assessment since the assessee sought adjournments. Aggrieved, the assessee is in further appeal before us.
From assessee’s paper-book, it is quite clear that the assessee had furnished voluminous documents (approx. 300 Pages) before Ld. AO in support of the impugned purchases. However, the same has not been considered at all and the assessment has been framed in a cryptic manner. This being so, we set aside the orders of lower authorities and direct Ld. AO for de novo assessment with a direction to the assessee to plead and prove its case forthwith.
The appeal stand allowed for statistical purposes. Order pronounced u/r 34(4) of Income Tax (Appellate Tribunal) Rules, 1963. (UDAYAN DAS GUPTA) (MANOJ KUMAR AGGARWAL) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 17/11/2025
आदेश की "ितिलिप अ"ेिषत /Copy of the Order forwarded to : 1. अपीलाथ"/Appellant
""थ"/Respondent 3. आयकरआयु"/CIT 4. िवभागीय"ितिनिध/DR 5. गाड"फाईल/GF
