GANGESHWARI METALS PVT. LTD.,NEW DELHI vs. ITO, WARD-11(3), NEW DELHI

The grounds raised in the main appeal read as under:- i) That the appellant Co. was prevented by sufficient cause in not complying to the notices of hearing issued by the Ld. CIT(A) and therefore, the matter deserves to be restored back to the file of the Ld. CIT(A). ii) That the AO was unjustified in not granting adjournment on 9.12.2016 so as to enable the Assessee Co. to produce the books of accounts on the next date of hearing and therefore, the exparte assessment order as passed u/s. 144(1) read with setion 145(3) of the Act is illegal as principles of natural justice had been violated. iii) That without prejudice to above grounds, the AO was not justified in rejecting the books of accounts u/s. 145(3) of the Act thereby making an addition of Rs. 3,21,05,720/- to the manufacturing / trading results. At any rate, the addition as made is very excessive. iv) That the addition of Rs. 29,50,000/- as made u/s. 68 of the Act on account of fresh loan raised during the year is arbitrary, unjust and illegal. At any rate, without prejudice, the addition as made is very excessive. v) That the appellant reserves its rights to add, amend / modify the grounds of appeal.

We have heard both the parties and perused the records available with us, especially the orders of the authorities below. We find that AO has passed the exparte order dated 13.12.2016 u/s. 144(1) red with section 145(3) of the Act and similarly, the Ld. CIT(A) has also passed the exparte order dated 30.5.2018 by only upholding the order of the AO and did not pass a speaking order, which is not sustainable in the eyes of law. Keeping in view of the facts and circumstances of the case, the issues involved in the main Appeal No. 5494/Del/2018 (AY 2014-15) are set aside to the file of the Ld. CIT(A) with the directions to decide the same afresh, in accordance with law after giving adequate opportunity of being heard to the assessee and pass a speaking order. The Assessee through his counsel is directed to appear before the Ld. CIT(A) on 03.04.2019 at 10.00 AM for hearing and substantiate its claim before him and produce all the relevant evidences and did not take any unnecessary adjournment. Since the date has been pronounced in the Open Court, there is no need to send the notices to the parties for the hearing. Since the issues involved in the main appeal has been set aside to the file of the CIT(A) to decide the same afresh, in the aforesaid manner, hence, the Stay Application filed by the assessee has become infructuous and the same is dismissed as such.

In the result, the Assessee’s Stay Application stands dismissed and Main Appeal is allowed for statistical purposes. Order pronounced on 08-03-2019.