Ayush Add Com Pvt Ltd, New Delhi V. ITO WARD - 3(4), New Delhi

ITA 6853/DEL/2019

AI Insights

The case involves Ayush Add Com Pvt. Ltd., the appellant, contesting an order from the Commissioner of Income Tax (Appeals)-1, New Delhi, which sustained an addition made under section 69C of the Income Tax Act regarding unexplained expenditure for the Assessment Year 2011-12. The primary contention was that the AO had not provided a proper and adequate opportunity for the assessee to represent his case, which was argued to be a violation of the principles of natural justice. The AO had added Rs.19,10,000 as unexplained expenditure, attributing transactions with M/s Anishka Clothing Pvt. Ltd. and M/s Riddhi Siddhi Company Pvt. Ltd. The assessee argued that these transactions were either misrepresented or incorrectly attributed to them, and relevant evidence was ignored by the AO. The Tribunal, considering the submissions and the lack of proper hearing, decided to remand the case back to the AO for a fresh assessment.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 113202 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 9 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-05-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 21-05-2023
• Assessment Year: 2011-2012
• Appeal Filed On: 18-08-2019
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: D M SINGH
• Keywords: Unexplained expenditure
• Section: 69C; 143(3)

Judgement Text

I.T.A. No. 6853/Del/2019 1 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “A” NEW DELHI BEFORE SHRI NARENDRA KUMAR BILLAIYA, ACCOUNTANT MEMBER AND SHRI CHALLA NAGENDRA PRASAD, JUDICIAL MEMBER आ .अ.स ं /.I.T.A No.6853/Del/2019 /Assessment Year:2011-12 Ayush Add Com Pvt. Ltd., 124, Rajdhani Enclave, Pitampura, New Delhi. ब म Vs. ITO Ward 3(4) New Delhi. PAN No. AAECA8114G अ Appellant /Respondent Assessee by Shri D M Singh, Adv., & Shri Rajeev Kumar Sharma, Adv. Revenue by Shri Kanv Bali, Sr. DR स ु नवाईक तारीख/ Date of hearing: 22.05.2023 उ ोषणाक तारीख/Pronouncement on 31.05.2023 आदेश /O R D E R PER C.N. PRASAD, J.M. This appeal is filed by the assessee against the order of Ld. Commissioner of Income Tax (Appeals)-1, New Delhi dated 20.06.2019 for the AY 2011-12 in sustaining the addition made u/s 69C of the Act on account of unexplained expenditure. I.T.A. No. 6853/Del/2019 2 2. Ld. Counsel for the assessee, at the outset, referring to ground no. 3 of the grounds of appeal submits that the AO erred in passing the assessment order without giving assessee proper and adequate opportunity to represent his case in violation of principles of natural justice. Ld. Counsel submits that the AO while computing the assessment u/s 143(3) r.w.s. 147 of the Act made addition of Rs.19,10,000/- as unexplained expenditure u/s 69C of the Act. It is submitted that the AO in the assessment order stated that the assessee has entered into transactions with M/s Anishka Clothing Pvt. Ltd. and M/s Riddhi Siddhi Company Pvt. Ltd. for an amount of Rs.9,55,000/- each and the same was treated as unexplained expenditure u/s 69C of the Act which was sustained by the Ld.CIT(A). The Ld. Counsel submits that in the course of assessment proceedings the assessee vide letter dated 17.12.2018 had confirmed that the assessee had purchased bed sheets from M/s Riddhi Siddhi Clothing Pvt. Ltd. and receipts and payments were duly vouched and the payment was made by the assessee from his bank account and the same was also being reflected in the bank statement of the assessee which was completely ignored by the AO. 3. The Ld. Counsel further submits that in respect of the transaction said to have been made with M/s Anishka Clothing Pvt. I.T.A. No. 6853/Del/2019 3 Ltd. the assessee has submitted that it has never entered into any transaction with M/s Anishka Clothing Pvt. Ltd. which was also ignored by the AO. Ld. Counsel submits that since there was no proper opportunity by the AO the same may be restored to the AO for fresh examination. 4. Ld. DR has no serious objection in sending the matter back to the file of the AO for fresh examination. 5. Considering the rival submissions and perusing the orders of the authorities below the issue in appeal is restored to the file of the AO with a direction to examine afresh in accordance with law after providing adequate opportunity of being heard to the assessee. 6. In the result, appeal of the assessee is allowed for statistical purpose. Order pronounced in the open court on 31.05.2023 Sd/- Sd/- (NARENDRA KUMAR BILLAIYA) (C.N. PRASAD) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 31.05.2023 *Kavita Arora, Sr. P.S. Copy of order sent to- Assessee/AO/Pr. CIT/ CIT (A)/ ITAT (DR)/Guard file of ITAT. I.T.A. No. 6853/Del/2019 4 By order Assistant Registrar, ITAT: Delhi Benches-Delhi