AYUSH ADD COM PVT LTD,NEW DELHI vs. ITO WARD - 3(4), NEW DELHI
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Income Tax Appellate Tribunal, DELHI BENCH “A” NEW DELHI
Before: SHRI NARENDRA KUMAR BILLAIYA & SHRI CHALLA NAGENDRA PRASAD
आदेश /O R D E R PER C.N. PRASAD, J.M.
This appeal is filed by the assessee against the order of Ld. Commissioner of Income Tax (Appeals)-1, New Delhi dated 20.06.2019 for the AY 2011-12 in sustaining the addition made u/s 69C of the Act on account of unexplained expenditure.
I.T.A. No. 6853/Del/2019
Ld. Counsel for the assessee, at the outset, referring to
ground no. 3 of the grounds of appeal submits that the AO erred in
passing the assessment order without giving assessee proper and
adequate opportunity to represent his case in violation of principles
of natural justice. Ld. Counsel submits that the AO while
computing the assessment u/s 143(3) r.w.s. 147 of the Act made
addition of Rs.19,10,000/- as unexplained expenditure u/s 69C of
the Act. It is submitted that the AO in the assessment order stated
that the assessee has entered into transactions with M/s Anishka
Clothing Pvt. Ltd. and M/s Riddhi Siddhi Company Pvt. Ltd. for an
amount of Rs.9,55,000/- each and the same was treated as
unexplained expenditure u/s 69C of the Act which was sustained by
the Ld.CIT(A). The Ld. Counsel submits that in the course of
assessment proceedings the assessee vide letter dated 17.12.2018
had confirmed that the assessee had purchased bed sheets from M/s
Riddhi Siddhi Clothing Pvt. Ltd. and receipts and payments were
duly vouched and the payment was made by the assessee from his
bank account and the same was also being reflected in the bank
statement of the assessee which was completely ignored by the AO.
The Ld. Counsel further submits that in respect of the
transaction said to have been made with M/s Anishka Clothing Pvt.
I.T.A. No. 6853/Del/2019
Ltd. the assessee has submitted that it has never entered into any
transaction with M/s Anishka Clothing Pvt. Ltd. which was also
ignored by the AO. Ld. Counsel submits that since there was no
proper opportunity by the AO the same may be restored to the AO
for fresh examination.
Ld. DR has no serious objection in sending the matter back to
the file of the AO for fresh examination.
Considering the rival submissions and perusing the orders of
the authorities below the issue in appeal is restored to the file of
the AO with a direction to examine afresh in accordance with law
after providing adequate opportunity of being heard to the
assessee.
In the result, appeal of the assessee is allowed for statistical
purpose.
Order pronounced in the open court on 31.05.2023
Sd/- Sd/- (NARENDRA KUMAR BILLAIYA) (C.N. PRASAD) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 31.05.2023 *Kavita Arora, Sr. P.S. Copy of order sent to- Assessee/AO/Pr. CIT/ CIT (A)/ ITAT (DR)/Guard file of ITAT.
I.T.A. No. 6853/Del/2019
By order
Assistant Registrar, ITAT: Delhi Benches-Delhi
