Case Law Details
DCIT Vs Villa Mode Exports (India) Pvt Ltd (ITAT Mumbai)
ITAT Mumbai held that CIT(A) deleted the additions/ disallowances on the basis of information/ evidences filed before him without providing any opportunity to AO is in violation of rule 46A of the Income Tax Rules. Accordingly, matter restored back to CIT(A).
Facts- The case of the assessee was selected for scrutiny and statutory notice under the Income Tax Act were issued. However, the assessee didn’t respond to explanation or query raised by AO. In absence of response, AO made addition u/s 68 and other disallowances.
CIT(A) deleted the addition/ disallowances. Being aggrieved, the present appeal is filed by revenue.
Conclusion- Held that the order of the Ld. CIT(A) need to be set aside on two grounds. Firstly, the Ld. CIT(A) has considered the information or evidences filed by the assessee before him in violation of the Rule 46A of the Rules without providing any opportunity to the Assessing Officer for his comments. Secondly, the Ld. CIT(A) has not given proper reasoning for deleting the additions. Accordingly, we set aside the order of the Ld. CIT(A) and restore the matter back for deciding afresh after following due procedure of law. The ground No. iv of the Revenue is allowed . Since we have restored the appeal back to ld CIT(A), the other grounds of the appeal are rendered academic and not required to be adjudicated on merit.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
Author Bio
