RAKHEE DYECHEM P.LTD,MUMBAI vs. ASST CIT 2(3), MUMBAI

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ITA 1399/MUM/2015Status: DisposedITAT Mumbai27 October 2016AY 2011-123 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that the ends of justice would be met by restoring the matter to the CIT(A) for considering the additional evidence. The order of the CIT(A) was set aside for fresh consideration.

What were the facts?

The assessee's appeal before the CIT(A) was dismissed without considering additional evidence. The assessee had filed a return of income, which was processed, and subsequently, the AO made additions for deemed dividend and disallowance under Section 14A.

What were the issues?

Whether the CIT(A) erred in not admitting additional evidence filed by the assessee, thereby violating principles of natural justice.

Which sections of the Income-tax Act were involved?

Section 14A,Section 143(1),Section 143(3)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “D” BENCH, MUMBAI

Before: SHRI MAHAVIR SINGH, JM & SHRI RAJESH KUMAR, AM

Hearing: 25.10.2016Pronounced: 27.10.2016

O R D E R

PER RAJESH KUMAR, AM

1.

This is an appeal filed by the assessee challenging the order dated 19.1.2015 passed by the ld.CIT(A)-6, Mumbai not admitting additional evidence by the ld. CIT(A) for the assessment year 2011-12.

2.

Despite service of notice through RPAD none appeared on behalf of the assessee on the appointed date of hearing , we, therefore, proceed to decide the appeal ex-parte on merit and after hearing the ld. DR.

3.

Facts of the case are that the case are that the assessee filed her return of income on 29.9.2010 declaring total income at Rs.1,48,83,850/- which was processed under section 143(1) of the Act. Thereafter the case was selected for scrutiny. Accordingly, statutory notices u/s 143(2) and 142(1) were issued and served upon the assessee. The AO framed the assessment after considering the written submissions of the assessee dated 11.12.2013, and 14.1.2014, which are reproduced in para 3.1, 3.2 and 3.3 of the assessment order, by assessing the total income at Rs.3,86,30,550/- by disallowing an amount of Rs.2,37,00,000/- on account of deemed dividend and Rs.46,705/- on account of disallowance u/s 14A of the Act vide assessment order dated 28.1.2013 passed under section 143(3) of the Act. Aggrieved by the order of the AO, the assessee preferred an appeal before the ld.CIT(A). Before the ld.CIT(A), the assessee submitted an additional evidence but the ld.CIT(A) did not consider it and passed impugned order thereby causing miscarriage of justice and thus violated principle of natural justice. Aggrieved by the order of the ld.CIT(A) the assessee is in appeal before this Tribunal.

4.

We have heard the ld.DR and perused the material placed before us.

5.

After hearing the ld.DR, we are of the considered opinion that the ends of justice would met if the matter is restored back to the file for ld.CIT(A) for considering the additional evidences as may be filed by the assessee.

Accordingly, we set aside the order of the ld.CIT(A) and restore the same to the file of the ld.CIT(A) for fresh application of mind on the documentary evidences as may be filed by the assessee in the re-appeal proceedings. 6. In the result, the appeal of the assessee is partly allowed for statistical purposes.

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