VIJAY AGENCIES,LATUR vs. ITO WARD 2, LATUR

Briefly, the facts of the case are that the appellant is a partnership firm engaged in the business of Trading in Machinery parts, Accessories, Industrial Gases, L&T Switchgears etc. The Return of Income for the A.Y. 2013-14 was filed on 29.09.2013 declaring total income of Rs.11,18,058/-. Against the said return of income, the assessment was completed by the Assessing Officer (AO) at a total income of Rs.1,57,79,720/-. While doing so, the AO made disallowance of Rs.16,80,223/- u/s.40(a)(ia) with which we are not concerned. The AO also made addition of unsecured loans received from the following parties to the tune of Rs.1,29,81,441/- as Income from Other Sources u/s.68 of the Act :

Being aggrieved, an appeal was filed before the CIT(A)/NFAC who vide impugned order after calling remand report from the Assessing Officer had deleted the addition u/s.40(a)(ia) of the Act. In respect of unsecured loans, the CIT(A)/NFAC based on the remand report submitted by the AO had deleted the addition in respect of Agarwal Trading Company, Vivek Gilda, Mahavir Gems and upheld the addition in respect of five parties namely, Hanuman Khandsari Sugar Mills, Deepak Digambar Pathak, Nandlal Ramchandra Sarda, Deepak Dinkrao Pathak and Srihari Traders.

Being aggrieved by that part of the order of CIT(A)/NFAC which is against the appellant, the appellant is in appeal before us in the present appeal.

On the other hand, the ld. DR has no serious objection for remand of the matter to the file CIT(A)/NFAC for denovo adjudication.

We heard the rival submissions and perused the material on record. We accept the contention of the ld. AR for remanding the matter to the file of CIT(A)/NFAC for denovo adjudication since the CIT(A)/NFAC had confirmed the additions without dealing with the explanation offered by the appellant against the adverse comments of the AO. Therefore, we remand the matter to the file of CIT(A)/NFAC with a direction that CIT(A)/NFAC shall deal with the explanation furnished by the appellant against the adverse comments made by the AO and then dispose of the appeal in accordance with law after affording an opportunity of being heard to the appellant.

In the result, the appeal filed by the assessee is partly allowed for statistical purposes.