Bhanumati D.Patel, Vapi vs Department Of Income Tax

आयकर अपीलीय अिधकरण, अिधकरण, अहमदाबाद Ûयायपीठ ''C'', अहमदाबाद । IN THE INCOME TAX APPELLATE TRIBUNAL AT AHMEDABAD, "C" BENCH

सव[ौी ौी जी. जी.सी. सी.गुƯा, माननीय उपाÚय¢, उपाÚय¢, एवं अिनल चतुवद ȶ ȣ, ȣ, लेखा सदःय के सम¢ । BEFORE S/SHRI G.C. GUPTA, VICE-PRESIDENT AND ANIL CHATURVEDI, ACCOUNTANT MEMBER)

ITA No.1434/Ahd/2011 [Asstt.Year : 2007-2008]

ACIT, Vapi Circle बनाम/Vs. Smt. Bhanumati D. Patel Vapi. L/h. of late Shri Dinkar V. Patel Resident Plot NO.197 Saurabh Society, Gunjan, Vapi.

(अपीलाथȸ / Appellant) (ू×यथȸ / Respondent)

राजःव कȧ ओर से/ : Revenue by Shri M.K. Singh, Sr.DR िनधा[ǐरती कȧ ओर से/ : Assessee by Shri Mehul K. Patel सुनवाई कȧ तारȣख/ : Date of Hearing 11th December, 2014

घोषणा कȧ तारȣख/ : Date of Pronouncement 09-01-2015

आदे श / O R D E R

PER G.C. GUPTA, VICE-PRESIDENT: This appeal by the Revenue for the Asstt.Year 2007-08 is directed against the order of the CIT(A).

2. Only ground of the appeal of the Revenue is as under:

"1. On the facts and circumstances of the case and in law, the ld.CIT(A) has erred in deleting the deemed dividend u/s.2(22)(e) of the Act charged in view of interest bearing loan of Rs.31,63,365/- ITA No.1434/Ahd/2011

given by the company in which the assessee is director and holding the voting power of more than 10%."

3. The learned DR submitted that the assessee has not filed any evidence whatsoever before the AO to substantiate its claim that the transaction entered into between M/s.Dhiraj Intermediates P. Ltd. to M/s.Brighton Pigment Pvt. Ltd. was a trading advance and not loan advance. He submitted that the CIT(A) has accepted some documents as additional evidence without evening asking for a remand report from the AO. The learned counsel for the assessee has opposed the submissions of the learned DR. He fairly submitted that copy of extract from the sale ledger of M/s.Brighton Pigment Pvt. Ltd. for the subsequent financial year 2007-08 and copy of certificate from M/s.Brighten Pignments Pvt. Ltd. dtd. 13.8.2010 were filed for the first time before the CIT(A). He has relied on the order of the CIT(A).

4. We have considered rival submissions and perused the orders of the AO and the CIT(A). We find that certain documents which go to the root of the issue were not filed by the assessee before the AO at the stage of the assessment. However, the same was filed before the CIT(A) for the first time during the appellate proceeding. Admittedly CIT(A) has not called for any remand report from the AO on this issue. Accordingly, it shall be in the interest of justice to set aside the order of the authorities below to the file of the AO with direction to decide the issue de novo in the grounds of the appeal on merit after providing due opportunity of hearing to the assessee. The assessee shall be at liberty to file any document in support

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of its case before the AO. We direct accordingly.

5. In the result, appeal of the Revenue is allowed for statistical purpose.

Order pronounced in Open Court on the date mentioned hereinabove.

Sd/- Sd/- अिनल चतुवȶदȣ / ANIL CHATURVEDI) (अिनल (जी. जी.सी. सी.गुƯा/G.C. GUPTA) लेखा सदःय /ACCOUNTANT MEMBER उपाÚय¢ /VICE-PRESIDENT

Copy of the order forwarded to: 1) : Appellant 2) : Respondent 3) : CIT(A) 4) : CIT concerned 5) : DR, ITAT. BY ORDER

DR/AR, ITAT, AHMEDABAD

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