ACIT, CC- 1, NEW DELHI V. ULTRA HOME CONSTRUCTION PVT. LTD., NEW DELHI

ITA 4335/DEL/2017

AI Insights

This case involves an appeal by the Revenue against the order of the ld.CIT(A)-23, New Delhi, which had deleted the additions made by the Assessing Officer (AO) regarding bogus purchases and unexplained share application money. The AO had initially made these additions following a search and seizure operation under section 132 of the Income-tax Act, 1961. The Tribunal found that the ld.CIT(A) had not provided adequate opportunity for the AO to rebut the submissions made by the assessee, leading to the setting aside of the CIT(A)'s order and a remand of the issues for a fresh decision.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 122133 (ITAT-DELHI)
• Duration Of Justice: 6 year(s) 4 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-10-2023
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: G
• Next Hearing Date: 18-10-2023
• Assessment Year: 2010-2011
• Appeal Filed On: 29-06-2017
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Bogus purchase; Search and seizure; Set aside
• Section: 132; 139; 143(3); 153A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES : G : NEW DELHI BEFORE SHRI KUL BHARAT, JUDICIAL MEMBER AND SHRI M. BALAGANESH, ACCOUNTANT MEMBER ITA No.4335/Del/2017 Assessment Year: 2010-11 ACIT, CC-1, New Delhi. Vs Ultra Home Construction Pvt. Ltd., 307, 3 rd Floor, Nipun Tower, Community Centre, Karkardooma, Delhi – 110 092. PAN: AAACU6772G (Appellant) (Respondent) Assessee by : None Revenue by : Shri Subhra Jyoti Chakraborty, CIT, DR Date of Hearing : 19.10.2023 Date of Pronouncement : 31.10.2023 ORDER PER KUL BHARAT, JM: This appeal by the Revenue pertaining to Assessment Year 2010-11 is directed against the order of the ld.CIT(A)-23, New Delhi, dated 11.04.2017. The Revenue has raised the following grounds of appeal:- “1. The order of Ld. CIT(A) is not correct in law and on facts. 2. On the facts and circumstances of the case the ld.CIT(A) has erred in deleting the addition of Rs.37,63,71,555/- made by AO on ITA No.4335/Del/2017 2 account of bogus purchases/expenses claimed by the assessee for the year under consideration. 3. On the facts and circumstances of the case the ld.CIT(A) has erred in deleting the addition of Rs.66,00,000/- made by AO on account of share application money allegedly received by the assessee. 4. The appellant craves leave to add, amend any/all the grounds of appeal before or during the course of hearing of the appeal.” 2. The facts, in brief, are that a search and seizure operation u/s 132 of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’) was carried out on 09.09.2010 in the case of M/s Amrapali Group of cases. The assessee was also covered. Thereafter, the case of the assessee was taken up for assessment u/s 153A r.w.s. 143(3) of the Act. The AO issued a notice u/s 153A calling upon the assessee to file Income-tax Return u/s 139 of the Act. While framing the assessment, the AO noticed about the bogus purchases by the assessee. Therefore, he made addition of Rs.37,63,71,555/- on account of bogus purchases. Further, the AO made addition of Rs.66 lakh on account of unexplained source of share application money. Aggrieved against this, the assessee preferred appeal before the ld.CIT(A). The ld.CIT(A), following his earlier order, deleted the impugned additions. 3. At the time of hearing, no one attended the proceedings on behalf of the assessee. Therefore, we proceeded to decide this appeal after hearing the ld. DR. ITA No.4335/Del/2017 3 4. The ld. DR, apropos the grounds of appeal, submitted that the ld.CIT(A) without giving opportunity to the AO, deleted the additions. The AO ought to have been given opportunity to rebut the submissions of the assessee. 5. We have heard the ld. DR and perused the material. We find force in the contention of the ld. DR that the ld.CIT(A) did not provide adequate opportunity to the assessee to rebut the submissions made by the assessee. Hence, the impugned order is hereby set aside and the issues are restored to the file of the ld.CIT(A) for deciding the same afresh, after giving adequate opportunity of hearing to the assessing authority. 6. In the result, the appeal of the Revenue is allowed for statistical purposes. Order pronounced in the open court on 31.10.2023. Sd/- Sd/- (M. BALAGANESH) (KUL BHARAT) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 31 st October, 2023. dk Copy forwarded to : 1. Appellant 2. Respondent 3. CIT 4. CIT(A) 5. DR Asstt. Registrar, ITAT, New Delhi