Shyambaba Electronic Pvt. Ltd. Vs DCIT ( ITAT Hyderabad)
Assessee’s assessment was completed u/s 143(3) r.w.s. 144B with major disallowances towards commission, bogus purchases & credit card payments. The assessee appealed before the CIT(A) & specifically challenged the disallowance of purchases of ₹2.46 crore. However, due to a clerical mistake, the same figure as commission was mentioned in Ground No.2, though detailed submissions & evidence clearly referred to the correct amount.
The CIT(A) reproduced the assessee’s submissions showing the correct purchase disallowance, yet failed to adjudicate this main issue & decided only the commission ground. Despite that, he dismissed Ground No.2 without any findings. Since the purchases issue was the core dispute & other disallowances were consequential, the Tribunal held that CIT(A) had not applied his mind & violated natural justice. Considering the assessee had filed voluminous evidence (560 pages), the ITAT set aside the appellate order & remanded the matter to the AO for proper verification & fresh adjudication after giving due opportunity. The appeal was allowed for statistical purposes.
FULL TEXT OF THE ORDER OF ITAT HYDERABAD
This appeal by the assessee is directed against the Order dated 11.03.2024 of the learned CIT(A)-National Faceless Appeal Centre [in short “NFAC], Delhi, for the assessment year 2021-2022.
