Case Law Details
ACIT Vs M/s Sur Buildcon Pvt. Ltd. (ITAT Delhi)
LANDMARK ORDER – Bhushan group companies get big relief by ITAT DELHI – First Of This Kind Where Addition under section 68 Quashed on Sole Ground of Violation of Natural Justice. – No Second Innings Given.
Addition under section 68 deleted of Rs.36.50 Crore in three companies who has received share capital and premium of above amount from companies having low or negligible return income where A.O concluded that since the assessees were not found existing at the registered/corporate office and as per the statement of Shri Bisht the same were paper companies, it gave reason to believe that the share capital and the share premium introduced into the assessee companies were questionable. In an appeal before CIT (A) , the CIT(A) deleted addition on account of invalidity of reasons recorded on borrowed satisfaction without having proper reasons to believe and were on suspect and dismissed ground of violation of principles of natural justice as infructuous as left for academic purpose only . The appellant taken additional ground before ITAT as :-
That the Ld. CIT(A) vide order dated 19.09.2013 passed u/s 250 of the Income tax Act, 1961 erred in dismissing the appeal of the Assessee challenging the order of the Ld. Assessing Officer to the extent is was passed in violation of Principles of Natural Justice inasmuch as the result of enquiries made by the Department on the basis of which the impugned additions were made in the hands of the Assessee were never confronted to the Assessee at any stage of the assessment proceedings, thus rendering the entire assessment proceedings as non-est, bad-in-law and void ab initio.”
4.4 The additional ground raised by the assessees is with respect to the violation of the Principles of Natural Justice in which the assessees contend that the enquires made by the Department to make the impugned additions in the hands of the assessees were never confronted to the assessees at any stage of the reassessment proceedings. Since the additional ground raised by the assessees is a question of law, we admit this ground
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