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Income Tax Appellate Tribunal, DELHI BENCHES : SMC-I : NEW DELHI
Before: SHRI R.S. SYAL
ORDER This appeal filed by the assessee is directed against the ex parte order passed by the CIT(A) on 18.1.2016 in relation to the assessment year 2008-09.
The assessee filed return declaring loss of Rs.9,553/-. The AO invoked the provisions of section 147. The assessee did not produce the AO in respect of certain accommodation entries allegedly received by the assessee. This led to the passing of order u/s 144, making an addition of Rs.35 lac. The assessee remained unrepresented before the ld. CIT(A) and, eventually, the addition of Rs.35 lac made u/s 68 of the Act was upheld. The assessee is aggrieved against the impugned order.
I have heard the rival submissions and perused the relevant material on record. It can be seen that the assessment order has been passed u/s 144 due to non-production of the relevant books of account before the AO. Thereafter, the assessee also remained unrepresented before the ld. CIT(A). The ld. AR explained the reasons for non participation in the proceedings before the authorities below. I am satisfied with such reasons.
In my considered opinion, the ends of justice would meet adequately if one more opportunity is given to the assesssee to present its case before the AO. Accordingly, the impugned order is set aside and the matter is restored to the file of the AO for deciding this issue afresh as per law, after allowing a reasonable opportunity of being heard to the assessee. It is made clear that if the assessee fails to extend proper co-operation during 2
AO will be entitled to draw an adverse inference against the assessee.
In the result, the appeal is allowed for statistical purposes.
The order pronounced in the open court on 28.09.2016.