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Income Tax Appellate Tribunal, BENCH ‘SMC’ KOLKATA
Before: Hon’ble Shri J.Sudhakar Reddy, AM]
This is an appeal filed by the assessee directed against the order of the Commissioner of Income Tax-(A)-Durgapur dated 31.03.2015 passed u/s 250 of the Income Tax Act, 1961 (the ‘Act ‘) relating to A.Y. 2009-10.
After hearing rival contentions, I find that the AO has recorded that the director of the assessee company has submitted full details in response to the query and that on the issue of unsecured loans, the director of the assessee company submitted that, in spite of extreme efforts, he could not make the factory run even for a single day and that the project failed. The director also submitted that he was mentally disturbed. The AO made the addition u/s 68 of the Act. Before the ld. CIT(A) none appeared. The ld. CIT(A) enhanced the disallowance of Rs.22,33,575/-. Notice of enhancement dated 22.03.2015 was given for Rs.10,00,000/- only. He passed an ex-parte order.
M/s CMG Agro (P)Ltd A.Y.2009-10 2
Under the circumstances I am of the considered opinion that there is violation of principles of natural justice. The appeal is restored to the file of the AO for fresh adjudication in accordance with law.
In the result the appeal of the assessee is allowed for statistical purposes.