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आदेश/Order
Per Sanjay Garg, Judicial Member:
The present appeal has been preferred by the against the order dated 16.3.2018 of the Commissioner of Income Tax (Appeals)-3, Ludhiana [hereinafter referred to as CIT(A)].
The assessee in this appeal has not only agitated the action of the CIT(A) in passing the ex-parte order without considering the written submissions filed by the assessee but has also agitated confirmation of disallowance of interest paid on alleged interest free advances.
ITA No. 667/ Chd/2018- Sh. Krishan Gopal, Ludhiana 2
The contention of the Ld. Counsel for the assessee is that the
assessee had own sufficient funds to meet those interest free advances. The
Ld. counsel, at this stage, has stated that though the amount of
disallowance of interest has been mentioned in the first ground of appeal
as Rs. 2,62,603/-, however, another disallowance of interest of Rs.
1,97,536/- inadvertently has remained to be included while agitating the
action of the CIT(A) in confirming the aforesaid disallowance.
We have gone through the impugned order of the CIT(A) and found
that though the assessee had filed written submissions before the Ld.
CIT(A), even the Ld. CIT(A) has reproduced the aforesaid written
submissions in the impugned order, however, the Ld. CIT(A) without
deciding the issue on merits has simply dismissed the appeal of the
assessee for non-representation. We, therefore, agree with the contention
of the Ld. Counsel for the assessee that the assessee had filed written
submissions before the Ld. CIT(A) and the Ld. CIT(A) ought to have
considered the same.
In view of this, the impugned order of the CIT(A) is set aside and the
matter is restored to the file of the CIT(A) with a direction to decide the
grounds / issues raised before us i.e. regarding the disallowance of interest
of Rs. 2,62,603/- and further disallowance of Rs. 1,97,586/- on account of
interest free advances given by the assessee. The Ld. CIT(A) will give
proper opportunity of hearing to the assessee, consider the submissions, if
any, filed before him and then to decide the appeal of the assessee on
merits.
ITA No. 667/ Chd/2018- Sh. Krishan Gopal, Ludhiana 3
In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the Open Court on 16.11.2018
Sd/- Sd/- (अ�नपूणा� गु�ता / ANNAPURNA GUPTA) (संजय गग� / SANJAY GARG) लेखा सद�य/ Accountant Member �या�यक सद�य/ Judicial Member Dated : 16.11.2018 “आर.के.”
आदेश क� ��त�ल�प अ�े�षत/ Copy of the order forwarded to : 1. अपीलाथ�/ The Appellant 2. ��यथ�/ The Respondent 3. आयकर आयु�त/ CIT 4. आयकर आयु�त (अपील)/ The CIT(A) 5. �वभागीय ��त�न�ध, आयकर अपील�य आ�धकरण, च�डीगढ़/ DR, ITAT, CHANDIGARH 6. गाड� फाईल/ Guard File
आदेशानुसार/ By order, सहायक पंजीकार/ Assistant Registrar