M/S STAR ENTERPRISE,HOOGHLY vs. ACIT-CIR-1, HOOGHLY

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ITA 607/KOL/2013Status: DisposedITAT Kolkata29 January 2016AY 2008-20092 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal found that both the Assessing Officer and the CIT(A) had passed orders without proper examination of the facts and without providing a speaking order. Therefore, in the interest of natural justice, the matter was set aside to the Assessing Officer for fresh adjudication.

What were the facts?

The assessee's appeal concerned additions for bogus purchases, disallowance of earth filling expenses due to non-deduction of TDS, and disallowance of interest payment for non-deduction of TDS. The lower authorities, including the Assessing Officer and CIT(A), had passed ex-parte and non-speaking orders respectively.

What were the issues?

Whether the additions and disallowances made by the lower authorities were justified, given the ex-parte and non-speaking nature of their orders, and whether the assessee was denied a proper opportunity to present their case.

Which sections of the Income-tax Act were involved?

Section 144,Section 40(a)(ia)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “A” BENCH: KOLKATA

Before: Shri Mahavir Singh, JM & Shri Waseem Ahmed, AM]

Hearing: 29.01.2016Pronounced: 29.01.2016

Per Shri Mahavir Singh, JM:

1.

This appeal by assessee is arising out of order of CIT(A)-XXXVI, Kolkata vide Appeal No. 288/CIT(A)-XXXVI/Kol/Cir-1,HG/10-11 dated 15.01.2013. Assessment was framed by ACIT, Cir-1, Hooghly u/s. 144 of the Income-tax Act, 1961 (hereinafter referred to as “the Act”) for Assessment Year 2008-09 vide his order dated 13.12.2010.

2.

At the outset, Ld. Counsel for the assessee stated that he has raised the following three issues: “(i) Confirmation of addition of bogus purchases of Rs.34,99,180/-; (ii) Disallowance of earth filling material expenses for non-deduction of TDS by invoking the provisions of section 40(a)(ia) of the Act; (iii) disallowance of interest payment for non-deduction of TDS on old loans and payment to HDFC Bank amounting to Rs.5,672/- and Rs.21,096/- respectively.”

3.

Ld. Counsel for the assessee took us to the order of CIT(A) who reproduced the submissions of the assessee and dismissed the first ground by cryptic order as under: “Even undersigned asked A/R to produce these parties to examine the genuineness of the transactions. In spite of opportunities on or before 28.12.12, 03.01.13, 11.01.13 and 15.01.13 these parties were not produced. Appellant failed to prove the genuineness of the transaction before the Assessing Officer as well as in appeal. Hence, addition made of Assessing Officer of Rs.34,99,188/- on account of bogus purchases, unaccounted investment in purchases and sundry creditors is sustained. Appeal on this ground is dismissed.” 4. The second issue he dismissed by non-speaking order as under: “Submission of the A/R, grounds of appeal, remand report, assessment order were duly considered. Earth filing is a contract between two parties. There can’t be sale/purchase for this job. Appellant failed to deduct TDS on earth filling charges. And AO was right in disallowing u/s. 40(a)(ia) of Income Tax Act. Appellant appeal is dismissed on this ground also.”

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