Hanumant Ingots Pvt. Ltd. Vs ACIT (ITAT Raipur)
ITAT Raipur held that in case of bogus/ sham transactions it is the responsibility of revenue authorities to investigate and decide that whether bogus transactions fall within the category of tax planning or tax evasion. Accordingly, matter restored back to AO for fresh consideration.
Facts- The assessee is a company resident in India. It is alleged that assessee is is one of the beneficiaries of bogus transactions carried out by M/s Surakshit Real Estate Ltd. and have received an amount of Rs. 1,21,66,524/-. AO decided to complete the assessment in the manner providing under the provisions of Section 144 of the Act. Ld. AO, thereafter, had made certain observations regarding the bogus transactions carried out by the assessee and have made an addition of Rs. 1,21,66,524/- and Rs. 59,44,691/-.
CIT(A) passed the ex-parte order and dismissed the appeal of the assessee. Being aggrieved, the present appeal is filed.
Conclusion- Held that that assessee was non responsive before the First Appellate Authority and the appeal of assessee has been decided on ex-parte basis. Accordingly, following the principle of natural justice, we find it appropriate to restore this mater back to the file of Ld. CIT(A) for one last and final opportunity to the assessee to represent its case, so that a logical decision can be arrived at in terms of provisions of Section 250(4) & (6) of the Act.
