N.D. Distributors Pvt. Ltd., New Delhi vs Department Of Income Tax

Income Tax Officer, Vs. M/s N.D. Distributors Distributors Pvt.Ltd., Ward- Ward-13(1), B-10, Uttam Nagar, New Delhi. New Delhi - 110 059. PAN : AABCN8411E. (Appellant) (Respondent)

Appellant by : Shri P. Dam Kanunjha, Sr.DR. Respondent by : None.

Date of hearing : 16.03.2015 Date of pronouncement : 01.04.2015

ORDER

PER G.C. GUPTA, GUPTA, VP :

This appeal by the Revenue for the assessment year 2007-08 is directed against the order of learned CIT(A)-XVI, New Delhi dated 14th July, 2011.

2. None appeared on behalf of the assessee and therefore, the appeal of the Revenue is being decided ex parte qua the assessee- respondent on merits after hearing the learned DR.

3. The grounds of appeal of the Revenue are as under:-

"1. On the facts and circumstances of the case, the ld.CIT(A) has erred in admitting the additional evidence in the form of copies of balance-sheet for assessment years 2006-07 and 2007-08.

2 ITA-5078/Del/2011

2. On the facts and circumstances of the case, the ld.CIT(A) has erred in accepting the submissions of the assessee on the basis of above additional evidence that the share application money of Rs.1,30,00,000/- was clubbed in the amount of Rs.3,57,55,396/- shown under the head current liabilities for assessment year 2006-

07.

3. On the facts and circumstances of the case, the ld.CIT(A) has erred in accepting the submission of the assessee on the basis of the above additional evidence that the sundry creditors of Rs.1,96,29,274/- outstanding as on 31.3.2007 did not relate assessment year 2007-08.

4. On the facts and circumstances of the case, the ld.CIT(A) has erred in not only accepting the above additional evidence without providing an opportunity to the A.O. to examine and verify the same but also deleting the addition of Rs.1,30,00,000/- made u/s 68 of the I.T. Act on account of unexplained credits introduced in the garb of shares application money and also addition of Rs.1,96,29,274/- made u/s 68 on account of unexplained sundry creditors.

5. On the facts and circumstances of the case, the ld.CIT(A) has failed to appreciate the facts discussed in detail in the assessment order and remand report."

4. Learned DR submitted that the additional evidence in the form of copy of balance sheet and other documents were admitted by the learned CIT(A) in violation of the statutory provision relating to admission of additional evidence by him and, therefore, the order of the learned CIT(A) should be set aside.

5. We have considered the submissions of learned DR and have perused the order of the Assessing Officer and the CIT(A). We find that in the facts of the case, there seems to be a violation of the provisions of rules in admitting the additional evidence preferred by the assessee and, for which, a sufficient opportunity should have been provided to 3 ITA-5078/Del/2011

the Assessing Officer and remand report should also have been considered as per law. In these facts, we are of the view that it shall be in the interest of justice to set aside the orders of the Assessing Officer and the CIT(A) to the file of the Assessing Officer with the direction to pass a de novo assessment order in accordance with law after providing reasonable opportunity of hearing to the assessee. The assessee shall be at liberty to file any evidence in support of its case. The assessee is further directed to cooperate with the Department with regard to finalization of assessment. We direct accordingly.

6. In the result, the appeal of the Revenue is allowed for statistical purposes.

Decision pronounced in the open Court on 1st April, 2015.

Sd/- Sd/- (T.S. KAPOOR) KAPOOR) (G.C. (G.C. GUPTA) GUPTA) ACCOUNTANT MEMBER VICE PRESIDENT

VK.

Copy forwarded to: -

1. Appellant : Income Tax Officer, Ward- Ward-13(1), New Delhi.

2. Respondent : M/s N.D. Distributors Pvt.Ltd., B-10, Uttam Nagar, New Delhi - 110 059.

3. CIT

4. CIT(A)

5. DR, ITAT

Assistant Registrar