PARVEEN COMMODITY BROKERS (P) LTD.,NEW DELHI vs. ITO, WARD- 19(3), NEW DELHI

This appeal is filed by the assessee against the order dated 03/10/2017 passed by the CIT (A)-38, (hereinafter referred to ‘CIT(A)’)New Delhi for assessment year 2013-14.

Parween Commodity Brokers. Ltd. Vs. ITO

“1. That the learned Commissioner of Income Tax (Appeals) has erred both in law and on facts in upholding the action of learned Assessing Officer in computing the total income of the appellant at Rs.7,59,33,453/- as against the returned income of Rs. 1,03,290/- u/s 143(3) of the Act.

2. That the learned Commissioner of Income Tax (Appeals) has erred both in law and on facts in upholding an addition of Rs. 7,36,05,163/- u/s 56(2)(viia) of the Act.

2.1. That the basis adopted by the learned Assessing Officer and upheld by learned Commissioner of Income Tax (Appeals) to invoke the provision contained in Section 56(2)(viia) of the Act on the shares held as stock in trade and holding the same as gift income is factually incorrect, legally misconceived and therefore untenable.

2.2. That various adverse findings including fair market value worked out and conclusions recorded in the impugned order are factually incorrect, contrary to record, legally misconceived and without granting any opportunity much less any valid show cause notice to the appellant.

the appellant company and therefore the same are contrary to principle of natural justice and hence vitiated.

5. That even otherwise, the order of assessment framed is illegal, invalid and untenable having been framed not in conformity with the instructions issued by the CBDT in respect of the selection of cases for scrutiny and framing of assessment under section 143(3) of the Act.

It is therefore, prayed that addition/disallowances so upheld by the learned Commissioner of Income Tax (Appeals) alongwith interest levied be deleted and appeal of the appellant company be allowed.

3. Brief facts of the case are that, the assessee filed return of income declaring income of Rs. 1,03,290/-. Assessment order came to be passed by making addition of Rs. 7,36,05,163/- as income from other sources u/s 56(2)(viia) of the Act and further made addition of Rs. 22,25,000/- as unexplained money in the books of accounts. Accordingly, computed the income of the assessee at Rs. 7,59,33,453/- as against the returned income of Rs. 1,03,290/-. The assessee preferred an Appeal before the CIT(A), the Ld.CIT(A) vide order dated 03/10/2017 dismissed the Appeal filed by the assessee ex-parte. Aggrieved by the order dated 03/10/2017, passed by the Parween Commodity Brokers. Ltd. Vs. ITO CIT(A), the assessee filed the present Appeal on the grounds mentioned above.

The assessee had also filed an application U/R 29 of the Income Tax Rules for admission of additional evidence.

4. Both the Ld. AR as well as Ld. DR have agreed that since the Appeal has been decided by the CIT(A) ex-parte and considering the fact that the assessee had filed an application u/s 29 of the Income Tax Rules for admission of additional evidence, submitted that the matter may be restored to the file of the A.O. for de-novo adjudication. Recording the submission of both the parties, the issues involved in the present Appeal are restored to the file of the A.O. for de-novo adjudication.

Order pronounced in the open court on : 07/06/2023.