ELLORA ISPAT,PUNE vs. INCOME-TAX OFFICER, WARD - 6(4), PUNE

The appeal filed by the assessee and Stay Application were heard together and are being disposed of by this consolidated order for the sake of convenience.

The assessee has raised the following ground of appeal:- 1. The Raw Material purchased from Rashmi Enterprises amounting to Rs.31,45,803/- has been consumed for production of M.S. Profile. 2. The alleged Allegation by learned A.O. and F.A. are wrong as they have treated the Appellant as Trader. 3. The Appellant crave leave to produce additional documents before Honourable ITAT. 4. The Appellant request to delete the additions made by A.O. and confirmed by F.A. 5. The Appellant has neither concealed nor shown wrong purchases, hence penalty levied u/s. 271(1)(c) to be deleted.

The assessee is aggrieved by the order of CIT(A) in not considering evidence available with the assessee and passing the order. The issue raised in the present appeal is against alleged bogus purchases made by the assessee.

The perusal of assessment order reveals that the same was passed ex parte under section 144 r.w.s. 147 of the Act. The assessee claims to have

We find merit in the plea of assessee that reasonable opportunity of hearing has not been granted to assessee. The learned Authorized Representative for the assessee pointed out that the issue in the present appeal stands covered. Since documentary evidences available with the assessee in respect of goods purchased and its trail has not been considered by the authorities below, we deem it fit to restore the issue back to the file of Assessing Officer. The assessee is directed to file evidences before the Assessing Officer to establish its claim. The Assessing Officer is directed to allow reasonable opportunity of hearing to the assessee and decide the issue in accordance with law.

The matter is being set aside to the file of Assessing Officer, hence the issue on merits is not being decided. However, the Stay Application moved by the assessee stands dismissed.

In the result, appeal of assessee is allowed for statistical purposes and the Stay Application is dismissed.