Case Law Details
ITO Vs Manish Jeevan Bhaliya (ITAT Pune)
The appeal preferred by the Revenue. The issue under consideration is with regard to the bogus purchases conducted by the assessee and as per revenue CIT(Appeals) has erred in granting relief to the assessee without dealing specifically with the facts of the case and even not calling for any remand report from the Assessing Officer.
The case of the assessee was reopened under the provisions of section 147 of the Income Tax Act, 1961 on account of information received from the Sales Tax Department regarding the Hawala Transactions. On the given date and time, the assessee neither attended nor filed any written submissions. Since the assessee failed to comply to the notices and furnish the details and information, the assessment u/s. 144 r.w.s.147 of the Act was completed.
At the time of hearing, the Ld. DR brought to our notice that various additional evidences were admitted by the Ld. CIT(Appeals) from the assessee but those additional evidences were not placed before the Assessing Officer for his comments. That further, in these cases of bogus purchases, the facts needs to have a detailed verification and since there was no compliance before the Assessing Officer, the Ld. CIT(Appeals) was not justified in simply admitting various additional evidences and giving relief to the assessee even without calling for any remand report from the concerned Assessing Officer.
In view of the ITAT, justice should not only be done, it should seem to have been done. This way of giving relief to the assessee in a summarized and cryptic order by the Ld. CIT(Appeals) without calling for any remand report is not warranted from a quasi-judicial authority. The parameters of justice demands that there should be check and carves on the practices conducted by the assessee so that the Revenue is not defrauded or denied of the legible taxes which it has to receive from the assessee. Merely admission of additional evidences without giving an opportunity to the Assessing Officer to confront all these evidences, without calling for remand report regarding verification of genuineness of the transactions, the Ld. CIT(Appeals) has not complied with the parameters of law.
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