IN THE INCOME TAX APPELLATE TRIBUNAL
DELHI BENCH: `G' NEW DELHI
BEFORE SHRI H. S. SIDHU, JUDICIAL MEMBER
AND
SHRI B.R.R. KUMAR, ACCOUNTANT MEMBER
I.T.A. No. 2543/Del/2018
Assessment Year: 2014-15
SHADAB, vs. ITO, WARD 2(3),
D-132, SHYAM PARK EXTENSION, GHAZIABAD
SAHIBABAD,
GHAZIABAD, UTTAR PRADESH
(PAN: DQKPS4365F)
(ASSESSEE) (RESPONDENT)
Assessee by: Sh. Rohit Tiwari, Adv.
Revenue by: Sh. N.K. Bansal, Sr. DR.
ORDER
PER H.S. SIDHU, JM
This appeal is filed by assessee against the Order dated 02.1.2018
passed by the Ld. CIT(A), Ghaziabad relating to Assessment Year 2014-
15 on the following grounds:-
1. That the Ld. CIT (A) has failed to appreciate that the
Assessment order as passed by Ld. A.O. is bad :n law
and facts of the case and also that the same has been
passed without giving proper opportunity of being
heard.
2. That the Ld. CIT (A) grossly erred on facts and in law
in sustaining the addition of Rs. 18,80,445 as made by
Ld. A.O. on account of low N.P. Rate.
3. That the Ld. CIT (A) grossly erred on facts and in
law in sustaining the addition of Rs. 2,00,000 as against
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the addition of Rs. 2,50,000 as made by Ld. A.O. on
account of low household withdrawals.
4. That the Ld. CIT (A) grossly erred on facts and in
law in sustaining the addition of Rs. 19,36,500 as made
by Ld. A.O. on account of opening capital.
5. That the Ld. CIT (A) grossly erred on facts and in
law in sustaining the addition of Rs. 88,45,426 as made
by Ld. A.O. on adhoc basis @30% of outstanding
creditors.
6. That the Ld. CIT (A) erred in facts and in law in
not appreciating that:
· All books of account were duly produced
before the Ld. A.O.;
· Confirmation from creditors were duly filed
and;
· Verification of creditors u/s 133 was duly
made by Ld. A.O.
7. That the Ld. CIT (A) erred in law and on facts in
confirming the charge of interest u/s 234A, 234B and
234C.
8. That the appellant craves leave to add, to amend,
to alter and/or to withdraw any of the above ground to
appeal before or at the time of hearing of appeal.
2. Facts narrated by the revenue authorities are not disputed by both
the parties, hence, the same are not repeated here for the sake of
brevity.
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3. During the hearing, Ld. counsel for the assessee has stated that
lower authorities have erred in law and on facts in passing the orders
and that too without providing adequate opportunity of being heard and
without observing the principle of natural justice and did not consider and
discuss the documents / evidences filed before the them. In support of
these contentions, assessee has filed a Paper Book containing pages 1-
258 in which he has attached the copy of order sheet of assessment
proceedings before AO; reply of the assessee dated 28.1.2016; copy of
balance sheet, audit report, ITR and bank account statements for FY
2013-14; List of outstanding sundry creditors alongwith copies of their
ledger accounts; confirmations from 15 sundry creditors alongwith their
ID proof; confirmations from remaining 10 sundry creditors alongwith
some of their ID proof; copy of bank statement for FY 2014-15 showing
payments made to sundry creditors subsequently; copies of all ledger
accounts and bank accounts in the books of the assessee alongwith
vouchers of expenses; reply of the assessee; copies of notice u/s. 133(6)
sent to 15 creditors by AO; reply of assessee on 26.2.2016; list of
outstanding sundry creditors alongwith their addresses; financials of the
assessee for the period FY 07-08 to Feb 2014; copies of gift deeds and
will alongwith translation; copies of relies received from creditors in
response of notice u/s. 133(6); reply of the assessee on 10.8.2016;
payment to suppliers details dated 20.3.2014, 26.3.2014 and 31.3.2014
alongwith their addresses and quantitative chart; reply of the assessee
on 26.9.2016; extract of purchase account in the books of the assessee
showing payments made by banking channel; group summary of sundry
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creditors as on 31.3.2019 in the books of the assessee; copy of cash
book; rely of the assessee on 7.11.2016; reply of the assessee on
23.11.2016 alognwith cash flow statement; and copy of show cause
notice of the AO dated 13.10.2016 and stated that the same were filed
before the lower authorities, but were not considered by them.
Therefore, he requested that the issues in dispute may be remitted back
to the file of the AO to decide the same afresh, as per law after giving
adequate opportunity of being heard to the assessee and consider all the
documents/evidences of the assessee.
4. On the other hand, Ld. DR relied upon the order of the orders of
the authorities below and stated that lower authorities have given various
opportunities to the assessee and considered each and every aspect of
the issue, hence, the orders of the lower authorities need to be upheld.
5. We have heard both the parties and perused the records as well as
the relevant provisions of law, we find considerable cogency in the
contention of the Ld. Counsel for the assessee that lower authorities
have erred in law and on facts in passing the orders and that too without
providing adequate opportunity of being heard and without observing the
principle of natural justice and did not consider and discuss the
documents / evidences filed before them. We find that the Paper Book
filed before us which contain pages 1-258 in which he has attached the
copy of order sheet of assessment proceedings before AO; reply of the
assessee dated 28.1.2016; copy of balance sheet, audit report, ITR and
bank account statements for FY 2013-14; List of outstanding sundry
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creditors alongwith copies of their ledger accounts; confirmations from 15
sundry creditors alongwith their ID proof; confirmations from remaining
10 sundry creditors alongwith some of their ID proof; copy of bank
statement for FY 2014-15 showing payments made to sundry creditors
subsequently; copies of all ledger accounts and bank accounts in the
books of the assessee alongwith vouchers of expenses; reply of the
assessee; copies of notice u/s. 133(6) sent to 15 creditors by AO; reply
of assessee on 26.2.2016; list of outstanding sundry creditors alongwith
their addresses; financials of the assessee for the period FY 07-08 to Feb
2014; copies of gift deeds and will alongwith translation; copies of relies
received from creditors in response of notice u/s. 133(6); reply of the
assessee on 10.8.2016; payment to suppliers details dated 20.3.2014,
26.3.2014 and 31.3.2014 alongwith their addresses and quantitative
chart; reply of the assessee on 26.9.2016; extract of purchase account in
the books of the assessee showing payments made by banking channel;
group summary of sundry creditors as on 31.3.2019 in the books of the
assessee; copy of cash book; rely of the assessee on 7.11.2016; reply of
the assessee on 23.11.2016 alognwith cash flow statement; and copy of
show cause notice of the AO dated 13.10.2016 and stated that the same
were also filed before the lower authorities, but were not considered by
them. Therefore, in the interest of justice, the issues in dispute needs to
be remitted back to the file of the AO to decide the same afresh, as per
law after giving adequate opportunity of being heard to the assessee and
consider all the documents/evidences to be filed by the Assessee as well
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as documents/evidences filed by the assessee in the shape of Paper Book,
as discussed above.
5.1 In the background of the aforesaid discussions and in the interest
of justice, we remit back the issues in dispute to the files of the
Assessing Officer with the directions to consider each and every aspects
of the issues involved in the Appeal and decide the same afresh, after
considering the Paper Book, as aforesaid and give adequate opportunity
of being heard to the assessee to substantiate its case. Assessee is also
directed to cooperate with the AO in the proceedings and did not take any
unnecessary adjournment and file any other evidences / documents
before him to substantiate his case alongwith this aforesaid Paper Book.
6. In the result, the appeal filed by the assessee stand allowed for
statistical purposes.
Order pronounced on 17/06/2019.
Sd/- Sd/-
[B.R.R. KUMAR] [H.S. SIDHU]
ACCOUNTANT MEMBER JUDICIAL MEMBER
Date 17/6/2019
"SRBHATNAGAR"
Copy forwarded to: -
1. Appellant -
2. Respondent -
3. CIT
4. CIT (A)
5. DR, ITAT TRUE COPY
By Order,
Assistant Registrar, ITAT, Delhi Benches
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