Garg Alloys Pvt. Ltd., New Delhi vs Assessee

Garg Alloys Pvt. Ltd., vs ITO, C/o-R.B.Arora & Co., CA, 38/6, Ward-12(1), West Patel Nagar, New Delhi-110008. New Delhi. PAN-AAACG0952G (APPELLANT) (RESPONDENT)

Appellant by Sh. A.K.Srivastava, CA Respondent by Sh. Satpal Singh, Sr. DR

ORDER PER DIVA SINGH, JM

This is an appeal filed by the assessee against the order dated 12.12.2012 of CIT(A)-VIII, New Delhi pertaining to 2000-01 assessment year on the various issues. The record shows that the assessee returned an income of Rs.4238/- by filing a return on 31.10.2000 with ITO, Co. Ward-1(2), New Delhi as per the assessment order dated 14.12.2007 passed u/s 144 of the Act. In response to the notice issued to the assessee, Mr. M.M.Bhasin, CA appeared alongwith letter dated 12.12.2007 and requested for reasons for re-opening the assessment. He also stated that the return had been filed evidenced by Acknowledgement No.-219 dated 31.12.2000. The AO was of the view that the concerned person was not authorized to sign the return of income. The assessment u/s 144 making the additions of Rs.2 lacs relying upon the information received u/s 133(6) of the Act which was called for from CITI Bank, Connaught Place, New Delhi. The said information revealed that there was a credit of Rs.2 lacs in the account of the assessee allegedly from M.Chand Distribution Company Pvt. Ltd which was treated as a sham 2 I.T.A .No.-954/Del/2013

transaction by the AO. Against this addition of Rs.2 lacs the assessee came in appeal before the First Appellate Authority. Apart from various other grievances the assessee sought to file fresh evidence in support of its stand before the CIT(A) which was not admitted in view of the fact that the CIT(A) was of the view that sufficient opportunity had been provided to the assessee during the assessment proceedings. The record shows that in the statement of facts filed the assessee has alleged that the reasons recorded have not been confronted to the assessee. It is also found mentioned that the letter dated 12.12.2007 by his AR wrongly mentioned the return having been filed on 31.12.2000 and should be treated as having been filed on 31.10.2000. It is also found stated that the documents in support of the share application money received by cheque were placed before the authorities. Adverse inferences it is stated have been drawn without confronting the assessee with the specific evidence used against it. Consequently it is submitted that the opportunity to examine the evidence against the assessee and the opportunity to place necessary evidence in support of its claim have been denied.

2. We have heard the parties and seen the material available on record. Considering the grounds and the limited plea of the assessee that let the issue go back and necessary evidence to be taken on record alongwith providing assessee a copy of the reasons recorded for re-opening the assessment proceedings which requests were not opposed by the Sr. DR. Mr. Satpal Singh. We find that in the interests of substantial justice it is appropriate to set aside the impugned order and the assessment order and restore the issue back to the file the AO with the direction to provide the assessee a copy of the reasons recorded for reopening the assessment and also direct the AO to take on record the evidence which the assessee may chose to rely on in support of its claim. In the light of the above directions the AO necessarily granting the assessee a reasonable opportunity of being heard shall decide the issues in accordance with law de novo by way of a speaking order.

3 I.T.A .No.-954/Del/2013 3. In the result the appeal is allowed for statistical purposes.

The said order was pronounced in the open Court on 09th of January 2015 at the time of hearing itself.

Sd/- Sd/- (T.S.KAPOOR) (DIVA SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER

Dated:09 /01/2015 *Amit Kumar*

Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI