AYUSH ADD COM PVT LTD,NEW DELHI vs. ITO WARD - 3(4), NEW DELHI

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.

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. 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.