SWAN CREATIONS PRIVATE LIMITED,DELHI vs. ITO, WARD 22(3), NEW DELHI

The assessee has raised following grounds of appeal:-

Facts giving rise to the present appeal are that the assessment was re- opened u/ 147 of the Income Tax Act, 1961 (“the Act”). A notice u/s 148 of the Act dated 31.03.2018 was issued. In response to the notice, no one attended the proceedings on behalf o the assessee. Therefore, the Assessing Officer (“AO”) made assessment ex-parte to the assessee u/s 147 r.w.s 144 of the Act vide order dated 15.12.2018. The AO while framing assessment, made addition of Rs. 14,50,066/- u/s 68 of the Act in respect of cash deposited in the account of the assessee.

Aggrieved against this, the assessee preferred appeal before Ld.CIT(A), who after considering the submissions, sustained the addition and dismissed the appeal of the assessee. Page | 2

Aggrieved against the order of Ld.CIT(A), the assessee preferred appeal before this Tribunal.

Apropos to the grounds of appeal, Ld. Counsel for the assessee re- iterated the submissions as made in the written synopsis. He contended that the AO has made double addition of the same amount. He further contended that if reasonable opportunity was given to the assessee, the assessee could have explained the source of cash deposits.

On the other hand, Ld. Sr. DR opposed these submissions and supported the orders of the authorities below.

I have heard Ld. Authorized Representatives of the parties and perused the material available on record and gone through the orders of the authorities below. The contention of the assessee is that the entire process of selection and completion of assessment was made when the promoters of the assessee company had closed the operations of the assessee. Therefore, there was no representation on behalf of the assessee. He contented that requisite documents were filed before the Registrar of company. It is further contended that there was cash withdrawal and cash deposits by the assessee. It was further contended that the company had cash in hand of Rs.7,24,510/- and it had received a sum of Rs.4,40,033/- as a contractual receipt. Further, the AO had added the said amount twice thus, making addition of Rs.8,80066/-.

Considering the submissions and material placed on record, I am of the considered view that it would sub-serve the interest of natural justice, if the matter is restored back to the AO to make assessment afresh. The AO would Page | 3 provide adequate opportunity of hearing to the assessee. I therefore, set aside the impugned order and restore the assessment to AO for making assessment afresh after affording adequate opportunity of being heard to the assessee. The AO would verify the correctness of the claim of the assessee that it had sufficient cash in hand and the factum of contractual receipt added twice by the AO. Grounds raised by the assessee are accordingly, allowed for statistical purposes.

In the result, the appeal of the assessee is allowed for statistical purposes.