INCOME TAX ACT, 1961

Section 250(6)

Appeal [CIT(A)] - Ex-parte order - Bogus purchases - Estimated addition @12.5%

Assessee was engaged in trading of ferrous and non-ferrous metal was subjected to an assessment under section 143(3) read with section 147 wherein returned income was enhanced after estimated addition @12.5% on certain alleged bogus purchases. Pursuant to receipt of certain information from DGIT, it transpired that assessee obtained bogus purchases bills from as many as 11entities, details of which have already been extracted in quantum assessment order. Although the assessee defended the purchases by furnishing purchase invoices, bank statements evidencing payment through banking channels, quantitative details, etc. but failed to produce any of the suppliers for confirmation of transactions. Accordingly, AO estimated an addition of 12.5% against these purchases. CIT(A) dismissed the appeal of assessee. Held: It was quite clear that assessee remained negligent in attending the appellate proceedings despite being provided with various opportunities of being heard. However, keeping in view of principle of natural justice, it would be fit to grant another opportunity to the assessee to represent his case before first appellate authority. Accordingly, matter was remanded back to CIT(A) for re-adjudication with a direction to the assessee to defend his case before first appellate authority.

Followed:CIT v. Simit P Sheth (2013) 356 ITR 451 (Guj) : 2013 TaxPub(DT) 2115 (Guj-HC).

REFERRED :

FAVOUR : Matter remanded

A.Y. : 2009-10

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