M/S MITTASO INDIA PVT. LTD.,,DELHI vs. ITO, NEW DELHI

Date of Hearing Date of Hearing Date of Hearing Date of Hearing : : : 19 : 19 19-11111111-201 19 201 2015 201 Date of Order : Date of Order : 19 Date of Order : Date of Order : 19 19-11-201 19 201 2015 201

ORDER ORDER ORDER ORDER PER H.S. SIDHU PER H.S. SIDHU : : : : JM PER PER H.S. SIDHU H.S. SIDHU This appeal by the Assessee is directed against the Order of the Ld. Commissioner of Income Tax(A)-IX, New Delhi dated 24.9.2012 pertaining to assessment year 2009-10 on the following grounds:-

1(i) That on the facts and circumstances of the case, the Ld. CIT(A) was not justified in passing exparte order without service of notice and proper and reasonable opportunity.

(ii) That even otherwise, the CIT(A) has passed order in total disregard to provisions of section 250(6) of the Income Tax Act, 1961 and merely on presumption that the appellant is not interested in perusing the appeal.

2. That on the facts and circumstances of the case, the exparte order passed by Assessing Officer is on illegal and arbitrary basis without proper service of the notice and application of mind.

3(i) That estimation of net profit at 5% of gross receipt is highly arbitrary and in total disregard to past history of the case and audited books of accounts.

(ii) That the AO has applied provisions of section 44AF on illegal and arbitrary basis even though the return was filed on the basis of audited accounts and tax audit report and even other wise provisions of section 44AF are not applicable.

5. That on the facts and circumstances of the case, the CIT(A) was also not justified in confirming addition of Rs. 40,94,854/- in respect of sundry creditors as sundry creditors were merely represented by purchases and there could be no factual or legal basis to presume that same represent undisclosed income.

4. On the contrary, P. Dam Kanunjna, Sr. DR strongly opposed the request of the assessee and stated that the assessee remained non-cooperative before the AO as well as Ld. CIT(A), hence, the appeal of the Assessee may be dismissed by upholding the action of the Ld. CIT(A).

6. After hearing both the parties and perusing the relevant records available with us, especially the order passed by the Revenue Authorities, we are of the considered view that AO as well as Ld. CIT(A) has decided the issues in dispute against the assessee without affording sufficient opportunity to the assessee. As stated by the Ld. Counsel for the assessee that the assessee is having all necessary evidences for substantiating its claim before the AO and also undertake to fully cooperate in the assessment proceedings and to file the necessary evidences for substantiating its claim before the AO without wasting of further time. Keeping in view of the Statement given by the Ld. Counsel for the assessee on behalf of the assessee and on the facts and circumstances of the present case, we are of the considered view that the issues in dispute require thorough examination at the level of the AO. Therefore, in the interest of justice, we set aside the issues in dispute to the file of the AO to consider the same, afresh under the law, after giving full opportunity of being heard to the assessee. However, the Assessee is directed through its Counsel to appear before the concerned Assessing Officer on 04.04. 04.04. 04.04.2016 at 10.30 AM 04.04. 2016 at 10.30 AM 2016 at 10.30 AM to substantiate its 2016 at 10.30 AM claim, as requested by him.

Order pronounced in the Open Court on 19/11/2015, upon conclusion of hearing.