K & S Fincon Pvt. Ltd Vs ITO (ITAT Delhi)
ITAT Delhi held that passing of an order ex-parte by CIT(A) without affording adequate opportunity of hearing is unjustified. Accordingly, matter restored to the file of Ld. CIT(A).
Facts- AO had received information from DDIT (Inv.)-I, Faridabad to the effect that assessee company had made payment of Rs. 1,25,28,000/- primarily in the form of bogus expenses to bogus concern viz. Softech Enterprises. Therefore, the case was re-opened u/s 147 of the Act and statutory notices were issued accordingly. In response to notice issued u/s 148 of the act, the assessee filed return declaring total income at Rs. 1,36,562/-. During assessment proceedings the assessee did not respond to statutory notices with questionnaire issued by the AO. The AO completed the assessment u/s 144/147 of the Act at Rs. 1,26,64,664/- by adding Rs. 1,25,28,000/-, treating the same as accommodation entry, u/s 68 of the Act.
CIT(A) dismissed the appeal and affirmed the action of the AO. Being aggrieved, assessee has preferred the present appeal.
Conclusion- Held that in reassessment proceedings submissions were duly made before the Assessing Authority which were not considered by the AO and in appeal before the learned First Appellate Authority no physical notice of hearing was ever received by the assessee and the learned CIT(A) dismissed the appeal of the assessee, ex parte, without adverting on merit of the case and without affording adequate opportunity of hearing. Considering the totality of facts of the present case, in order to sub serve the interests of natural justice, we hereby set aside the order of learned CIT(A) and restore the matter to the file of learned First Appellate Authority for fresh decision after affording adequate opportunity of being heard to the assessee.
