SHYAM THAKUR, SUNDARGARH,ODISHA V. ITO WARD-3,ROURKELA, ROURKELA

ITA 74/CTK/2024

• Counselvise Citation: [2024] 100 COUNSELVISE.COM (IT) 2759 (ITAT-CUTTACK)
• Duration Of Justice: 2 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-04-2024
• Appeal Filed By: Assessee
• Order Result: PartlyAllowed
• Bench Allotted: SMC
• Next Hearing Date: 28-04-2024
• Assessment Year: 2014-2015
• Appeal Filed On: 25-02-2024
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Opportunity of being heard

Judgement Text

आयकर अऩीऱीय अधधकरण, “एस.एम.सी” न्यायऩीठ,कटक IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH CUTTACK श्री जाजज माथन, न्याययक सदस्य के समक्ष । BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER आयकर अऩीऱ सं/ITA No.74/C TK/2024 (ननधाारण वषा / Asses s m ent Year :2014-2 015) Shyam Thakur, Plot No.A/9/1, Kalunga Industrial Estate, Kalunga, Sundargarh Vs ITO, Ward-3, Rourkela PAN No. :AACCF 0554 F (अऩीऱाथी /Appellant) .. (प्रत्यथी / Respondent) ननधााररती की ओर से /Assessee by : Shri S.K.Agarwalla, CA राजस्व की ओर से /Revenue by : Shri S.C.Mohanty, Sr. DR स ु नवाई की तारीख / Date of Hearing : 29/04/2024 घोषणा की तारीख/Date of Pronouncement : 29/04/2024 आदेश / O R D E R This is an appeal filed by the assessee against the order of the ld CIT(A), National Faceless Appeal Centre (NFAC), Delhi, dated 12.01.2024 in DIN & Order No.ITBA/NFAC/S/250/2023-24/1059667854(1) for the assessment year 2014-2015. 2. It was submitted by the ld. AR that the assessee is a scrap dealer. It was the submission that the assessee had taken advances from the customers to an extent of Rs.15 lakhs and Rs.8,56,514/- being amounts received from various sundry debtors. It was the submission that the AO had issued notices u/s.131 of the Act to the creditors and debtors, who did not appear but had filed confirmation letters. It was the submission that though the confirmation letters have been produced, the AO on the ground that the parties did not appear, made the disallowance of both creditors to an extent of Rs.15 lakhs and recovery from the debtors to the extent of Rs.8,56,514/-. It was the submission that the ld. CIT(A) without considering the explanation of the assessee confirmed the order of the ITA No.74/CTK/2024 2 AO. It was the prayer that the addition made by the ld. AO and confirmed by the ld. CIT(A) may be deleted. 3. In reply, ld. Sr. DR submitted that the show cause notice was issued to the assessee and the assessee did not respond to the same. It was the submission that filing of the confirmation letters does not prove the genuineness of the transaction. It was the submission that the addition as made by the AO and confirmed by the ld. CIT(A) is liable to be upheld. 4. I have considered the rival submission. Considering the fact that the creditors and debtors have filed their confirmation letters in regard to the transaction of the assessee and also considering the fact that the number of creditors are more than 75 and the number of debtors are more than 20, it shows that if a physical verification is to be done, then the AO will be stuck with the more than nearly 100 people. This would in fact to be an absolute difficulty. It is an admitted fact that the confirmation letters have been received from both the creditors and debtors. This being so, in the interest of justice, issues in this appeal are restored to the file of AO for readjudication. The AO shall direct the assessee to produce sample number of creditors and debtors as chosen by the AO for verification. If the sample confirms with the confirmation letters which have been submitted then the AO shall proceed thereafter in accordance with law. In these circumstances, the issues in this appeal are restored to the file of ld. AO for readjudication afresh after granting the assessee sufficient opportunity of being heard to substantiate its case. ITA No.74/CTK/2024 3 5. In the result, appeal of the assessee is partly allowed for statistical purposes. Order dictated and pronounced in the open court on 29/04/2024. Sd/- (जाजज माथन) (GEORGE MATHAN) न्यानयक सदस्य / JUDICIAL MEMBER कटक Cuttack; ददनाांक Dated 29/04/2024 Prakash Kumar Mishra, Sr.P.S. आदेश की प्रनतलऱपऩ अग्रेपषत/Cop.y of the Order forwarded to : आदेशान ु सार/ BY ORDER, (Assistant Registrar) आयकर अऩीऱीय अधधकरण, कटक/ITAT, Cuttack 1. अऩीऱाथी / The Appellant- Shyam Thakur, Plot No.A/9/1, Kalunga Industrial Estate, Kalunga, Sundargarh 2. प्रत्यथी / The Respondent- ITO, Ward-3, Rourkela 3. आयकर आय ु क्त(अऩीऱ) / The CIT(A), 4. आयकर आय ु क्त / CIT 5. ववभागीय प्रयतयनधध, आयकर अऩीऱीय अधधकरण, कटक / DR, ITAT, Cuttack 6. गार्ज पाईऱ / Guard file. सत्यावऩत प्रयत //True Copy//