Gangotri Construction Company, Delhi vs Assessee

Assessee by : Sh. K.C. Aneja, Adv. Department by : Sh. Robin Rawal, Sr. DR

Date of Hearing : 29-1-2015 Date of Order : 30-1-2015

ORDER

PER H.S. SIDHU : JM The Assessee has filed the present appeal against the

impugned order dated 31/3/2014 passed by the Ld. Commissioner

of Income Tax (Appeals)-Muzaffarnagar on the following grounds:-

"1. That the Ld. CIT(A) erred in law and on facts in confirming the action of the AO in confirming the following adback made by the AO towards appellant's income.

(i) Rs. 1773869/- as net income determined as per the provisions 44AD by applying net

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profit @ 8% by rejecting appellants books of account duly audited and placed with return of income and the same is otherwise very very excessive.

(ii) Rs. 5772819/- representing outstanding sums as on last day of the accounting year, representing current business liabilities and expenses payable which by no stretch of imagination could be added where income is determined by the AO by appellant NP Rate. The adback being otherwise excessive unwanted and made without allowing reasonable opportunity of being heard.

(iii) Rs. 20789/- representing interesting on fixed deposits with Banks representing security deposit with Pledged the Department from where contact work taken.

2. That the action of the Ld. CIT(A) in confirming the income determined by the AO at Rs. 7549269/- is wrong and on facts and in law and otherwise very very excessive in the alternate.

3. That the appellant reserves its right to add, modified or withdraw any ground before final adjudication of the appeal.

2. The facts narrated by the Revenue authorities are not disputed

by both the parties, therefore, need not to repeat the same for the

sake of convenience.

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3. At the time of hearing, Ld. Counsel of the assessee stated that

Ld. CIT(A) has decided the issue in dispute without affording

sufficient opportunity to the assessee to substantiate its claim.

Similarly, AO also made the additions in dispute contrary to the

principles of natural justice. Therefore, both the orders of the

revenue authorities deserve to be cancelled. He requested that the

assessee is in possession of the documentary evidence to

substantiate its claim before the AO, if this Bench, set aside the

issue to the file of the AO to consider the same afresh, after giving

adequate opportunity of being heard.

3.1 Ld. DR has not raised any objection to the request of the

assessee's counsel.

4. We have heard both the counsel and perused the records,

specially the orders of the authorities below, Paper Book filed by the

assessee containing pages 1 to 71 in which he has attached various

documents on the issue in dispute. We are of the view that the

appreciation of these evidences are required to be examined afresh

by the AO. We are also of the view that the request of the Assessee

seems to be genuine. Therefore, in the interest of justice, we are

setting aside the issue in dispute to the file of the AO to decide the

same afresh, after giving full opportunity to the assessee.

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5. In the result, the appeal of the Assessee stands allowed for

statistical purposes.

Order pronounced in the Open Court on 30/01/2015.

Sd/- Sd/-

[J.S. REDDY] [H.S. SIDHU] ACCOUNTANT MEMBER JUDICIAL MEMBER

Date 30/01/2015 "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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