Rajesh Roadlines P.Ltd, Mumbai vs Department Of Income Tax

ी संजय अरोड़ा, लेखा सद य, एवं ी िवजय पाल राव, याियक सद य के सम । BEFORE SHRI SANJAY ARORA, ACCOUNTANT MEMBER AND SHRI VIJAY PAL RAO, JUDICIAL MEMBER

आयकर अपील सं./ I.T.A. No.2095/Mum/2013 ( िनधा रण वष / Assessment Year : 2006-07)

Dy. Commissioner of बनाम/ बनाम M/s. Rajesh Roadlines Pvt. Income-tax- 7(2)- Room Vs. Ltd. No. 624, M.K. Road, 399, Narsi Natha Street Mumbai-400 020. Mumbai-400 009. थायी ले खा सं . /जीआइआर सं . /PAN/GIR No. : AAACR 2504 F (अपीलाथ /Appellant) .. ( यथ / Respondent)

अपीलाथ ओर से / Assessee by : Shri Jeetendra Kumar - DR यथ क ओर से/Respondent by : None

सुनवाई क तारीख / Date of 21/01/2015 Hearing : घोषणा क तारीख /Date of 30/01/2015 Pronouncement :

आदेश / O R D E R PER VIJAY PAL RAO, JM :

This appeal by the revenue is directed against the order dated 11/12/2012 of CIT(A) for the assessment year 2006-07. The revenue has raised the following grounds:

"1. The learned CIT(A) has erred on facts and in law in directing the Assessing Officer to verify the facts about the cessation of liability for A.Y. 2006-07, without properly appreciating the factual and legal matrix as clearly brought out by the Assessing Officer.

2. The learned CIT(A) has erred on facts and in law in directing the Assessing Officer to verify the facts about the cessation of liability for A.Y. 2006-07, practically setting aside the issue to the file of the Assessing Officer with certain directions, ignoring the fact that such setting aside of the order is beyond the powers of Learned CIT(A).

3. The Ld. CIT(A)'s order is contrary in law and on facts and deserves to be set aside."

2 ITA No.2095/M/13 2. Nobody has appeared on behalf of the assessee when this appeal was called for hearing despite repeated notice issued to the assessee . Accordingly we propose to hear this appeal exparte.

3. During the course of assessment proceedings the AO notices cash credit in the name of M/s. Rajesh Roadways & Rajesh Road CNS of Rs.19,27,345/- and Rs.32,52,711/- respectively. The AO asked the assessee to furnish the bills raised by these parties and their ledger accounts. The assessee was also asked to furnish return of income, P&L Account and Balance Sheet. The AO has observed that the assessee failed to file requisite details and made addition of Rs.51,80,062/- . On appeal the CIT(A) has directed the AO to verify the contentions of the assessee that the liability of the assessee has not ceased during the accounting year relevant to the assessment year under consideration. Before us, the ld. DR has submitted that the CIT(A) has no jurisdiction to set aside the matter to the record of the AO for verification and issue directions and accordingly the impugned order is not sustainable in law.

4. Having considered the submissions of the ld. DR and the relevant material available on record we find that the grievance of the revenue is the directions issued by CIT(A) to AO to verify the fact whether the liability in question ceased to exist during the year under consideration. We do agree with the contention of the ld. DR that CIT(A) has no jurisdiction to set aside the issue under the provisions of the Income tax Act, however, since the AO has made the addition for want of relevant record and before CIT(A) the assessee has raised a factual question of cessation of liability, therefore, the issue requires a proper verification and examination. In the facts and circumstances of the case, we set aside the order of the CIT(A) qua this issue and remit this issue to the record of the AO for proper verification and examination. The assessee is directed to furnish the relevant record as required by the AO to verify the fact whether the liability in question ceased to exist during the year under consideration. We make it clear that if the assessee fails to furnish requisite record and details then the AO can take an adverse inference.

3 ITA No.2095/M/13 5. In the result, appeal of the revenue is allowed for statistical purposes.

Order pronounced in the open court on 30/01/2015 आदेश क घोषणा खुले यायालय म) *दनांकः 30/01/2015 को क गई ।

Sd/- Sd/- ( Sanjay Arora ) ( Vijay Pal Rao ) लेखा सद य / ACCOUNTANT MEMBER याियक सद य / JUDICIAL MEMBER मुंबई Mumbai; *दनांक Dated 30/01/2015 व.िन.स./ Jv, Sr. PS

आदे श क ूितिल प अमे षत/Copy षत of the Order forwarded to : 1. अपीलाथ / The Appellant 2. ू यथ / The Respondent. 3. आयकर आयु (अपील) / The CIT(A)- 4. आयकर आयु / CIT

5. वभागीय ूितिनिध, आयकर अपीलीय अिधकरण, मुंबई / DR, ITAT, Mumbai

6. गाड$ फाईल / Guard file.

आदे शानुसार/ ार BY ORDER, स या पत ूित //True Copy// उप/सहायक उप सहायक पंजीकार (Dy./Asstt. Registrar) आयकर अपीलीय अिधकरण, अिधकरण मुंबई / ITAT, Mumbai.