Sai Lubricants Pvt. Ltd., New Delhi vs Assessee

This is an appeal filed by the assessee against the order dated 08.11.2012 of CIT(A)-X, New Delhi pertaining to 2007-08 assessment year. The relevant facts of the case are that the assessee returned an income of Rs. 28,580/- vide his return dated 15.11.2007 however the same was selected for scrutiny in response to notice issued u/s 143(2) etc. initially the assessee was represented through his Advocate however subsequently no one appeared. As a result thereof the assessment was concluded at an income of Rs.11,96,378/- u/s 144/143 of the Act.

In appeal before the First Appellate Authority the addition of Rs.95,000/- shown as unsecured loan; in regard to which no details for the loans was provided before the AO and the addition of Rs.2,00,000/- on account of loan from Ms. Usha Jain wherein also confirmations, identity and creditworthiness of the said persons were not provided. The additions were confirmed holding that there is no justification for the assessee to provide any confirmation or details at this stage since the documents were not provided before the AO. In the said background considering the peculiar facts and circumstances of the case and the manner in which the additions were made and confirmed it is seen that the specific 2 I.T.A .No.-347/Del/2013

explanation of the assessee before the CIT(A) shows that following submissions were advanced:-

4. "That the Ld. Assessing Officer has also erred in adding back Rs.95,000/- on account non disclsorue during the assessment proceeding.

The said loans were taken from Sh.Om Parkash Aggarwal, Manju Luthra, Harbajan Singh, Radha Krishan and Meenu were duly recorded in the books of accounts and reflected in the audited balance sheet of the appellant. The contention of the Ld. AO regarding non discloser is not correct and uncalled for. ON same grounds addition of Rs.200,000/- was made without seen that it was returns to Miss. Usha Jain during the same financial year duly recorded in the books of accounts. Confirmation of all the above are also enclosed for ready-reference."

2. In view of these peculiar facts and circumstances, we deem it appropriate in the interests of substantial justice to restore the issue back to the AO with the direction to take fresh evidence on record and decide the issue by way of a speaking order. The Ld. AR undertakes that the opportunities so provided shall not be wasted by the assessee as the discretion so exercised in the interests of substantial justice should not be abused.

3. In the result the appeal of the assessee is allowed for statistical purposes.

The order is pronounced in the open court on 19th of January 2015.

Sd/- Sd/- (B.C.MEENA) (DIVA SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER

Dated: 19/01/2015 *Amit Kumar*

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