INCOME TAX ACT, 1961

Section 250

Appeal to CIT(A) - Issues not examined in proper perspective vis-a-vis opportunity of being heard - -

This appeal was preferred by assessee against the order passed by CIT(A). The case was selected for limited scrutiny through CASS. As per AO, initially there was no compliance by assessee to the notices and details required AO were not filed. AO proceeded to frame the assessment under section 144 after making an addition on account of alleged unverifiable credits added back under section 68. Another addition was made on account of outstanding liability of company towards M/s. P as sundry creditors which also remained unverifiable. Before CIT(A) also assessee did not get any relief and the appeal of assessee was dismissed, although CIT(A) did admit additional evidences under rule 46A. Held: CIT(A) having upheld the entire addition under section 68 in respect of unsecured loans simply on the basis of observation in AO's remand report that only three of the fifteen parties complied with notices issued under section 133(6), and upheld the addition under section 41(1) without admitting the additional evidences which were sought to be adduced by assessee to substantiate its case that outstanding liability pertained to the amount payable to a company for purchase of land, both the issues were not examined in proper perspective by CIT(A) and, therefore, matter was remanded back to AO with the direction to re-examine the same after giving due opportunity to the assessee to present its case.

REFERRED :

FAVOUR : in assessee's favour by way of remand

A.Y. : 2015-16

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