DCIT Vs Amtek Transportation Systems Ltd. (ITAT Delhi)
No Remand Report, No Revenue Case- Ex-Parte Additions Collapse — ITAT Upholds CIT(A)’s Evidence-Based Deletions- — 110 Cr Liability Addition Falls Flat
Revenue challenged deletion of multiple additions made ex-parte by AO relating to difference in sales turnover, trade payables, current liabilities & exceptional charges. AO had framed the assessment without any representation from Assessee & made huge additions solely on the ground that details were not furnished.
Before CIT(A), Assessee filed additional evidences u/r 46A explaining that turnover difference of Rs.7.86 Cr arose due to sale of plant & machinery of Rs.8.01 Cr, not part of business sales. CIT(A) remanded the matter to AO, but AO failed to submit any remand report despite repeated reminders. CIT(A) verified GSTR-1, fixed asset schedule & sale invoices & accepted that the difference stood fully reconciled.
On trade payables of Rs.2.66 Cr, CIT(A) examined ledgers & confirmations, issued notice u/s 133(6) to Amtek Powertrain Ltd. which confirmed the closing balance. CIT(A) accepted that the increase was merely regrouping from other liabilities & no unexplained credit existed. On current liabilities of Rs.99.86 Cr, CIT(A) noted that the opening balance was Rs.110.21 Cr & therefore liabilities had actually reduced during the year. CIT(A) examined party-wise break-ups, confirmations from major creditors including Revent Precision Engineering Ltd., Revent Metalcast Ltd., Gateway Impex Pvt Ltd., & also verified statutory dues & capex-related payables. All material tallied with the books & confirmations, leaving no scope for addition.
