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ITAT granted one more opportunity to assessee to present her case before CIT(A)

Assessee individual was a wholesale dealer of old DG Sets etc. She took unsecured loan from various parties including a loan of Rs.10 lacs, but could not furnish details of the party. AO considered unsecured loan of Rs.10 lacs as unexplained and made addition u/s.68. CIT(A) confirmed the addition. ITAT granted one more opportunity to assessee to present her case before CIT(A).

1. Assessee individual was a wholesale dealer of old DG Sets etc. She took unsecured loan from various parties including a loan of Rs.10 lacs, but could not furnish details of the party. AO considered the unsecured loan of Rs.10 lacs as unexplained and made addition u/s. 68 of the Act.

2 CIT(A) confirmed the addition.

3 On appeal, the ITAT held as under:

"Considering the aforesaid facts, we are of the view that in the interest of justice, the assessee be granted one more opportunity to present its case before ld. CIT(A) but at the same time apathy of the assessee towards the proceedings before lower Authorities without any reasonable cause also cannot be encouraged. So in the interest of justice, we set aside the order of ld. CIT(A) to his file with direction to decide the issue in accordance with law and after providing adequate opportunity of hearing to the assessee and subject to the assessee making a payment of cost of Rs. 500/- to the Legal Aid and producing the proof of payment before ld. CIT(A). Further we also direct the assessee to suo motu appear before ld. CIT(A) within 1 month from the date of the order of the Tribunal for receiving the date of hearing from him. In the result, the ground of assessee is allowed for statistical purposes.

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Harsha Parag Vora L/H. Of Late ... vs Assessee on 22 March, 2016Income Tax Appellate Tribunal - AhmedabadHarsha Parag Vora L/H. Of Late ... vs Assessee on 22 March, 2016IN THE INCOME TAX APPELLATE TRIBUNALAHMEDABAD "D" BENCH AHMEDABAD,''Before Shri Shailendra Kumar Yadav, Judicial Member and,Shri Anil Chaturvedi, Accountant Member,ITA No. 2476/Ahd/2012Assessment Year :2008-09Smt. Harsha Parag VoraV/s. The ACIT,L/H of Late Paragbhai N. VoraCircle-2, BhavnagarProp. Shreenath Enterprise,Lokhand Bazar, Bhavnagar364001PAN No. AAUPV9275E(Appellant)..(Respondent)""/ By Assessee/ By Revenue" /Date of Hearing"/DatePronouncementShri Tushar Hemani, A.R.Smt. Sonia Kumar, Sr. D.R.17.02.201622.03.2016ofORDERPER : Shri Anil Chaturvedi, Accountant Member This appeal filed by Assessee is against the order ofCIT(A)-XX, Ahmedabad, dated 04.09.2012 for the assessment year 2008-09.2. The relevant facts as culled out from the materials on record are as under:3. The Assessee is an individual stated to be a wholesale dealer of old and used D. G. Set, spare partsof D. G. Set etc. and also engaged in trading of shares and securities. Assessee electronically filed hisreturn of income for A.Y. 2008-09 on 30.09.2008 declaring total loss of Rs.75,49,587/-. The case IT A N o . 2 4 7 6 / Ah d / 2 0 1 2 A. Y . 0 8 - 0 9 [ S m t . H a r s h a P a r a g V o r a v s . AC I T ] Page 2was selected for scrutiny and thereafter assessment was framed u/s.143(3) vide order dated24.12.2010 and the total loss was assessed at Rs.56,31,056/-. Aggrieved by the order of AssessingOfficer, Assessee carried the matter before the ld. CIT(A) who vide order dated 04.09.2012 grantedpartial relief to assessee. Aggrieved by the order of ld. CIT(A), Assessee is now in appeal before usand has raised following grounds:"1. The learned CIT(A) has erred both in law and on the facts of the case inconfirming the addition of Rs. 10,00,000/- made u/s 68 in respect of unexplainedcash credit. On the basis of facts and circumstances of the case, the learned CIT(A)Indian Kanoon - http://indiankanoon.org/doc/186746155/1Harsha Parag Vora L/H. Of Late ... vs Assessee on 22 March, 2016ought to have deleted the said addition. The same be held so now.2. Both the lower authorities have passed the orders without properly appreciatingthe fact and that they further erred in grossly ignoring various submissions,explanations and information submitted by the appellant from time to time whichought to have been considered before passing the impugned order. This action of thelower authorities is in clear breach of law and Principles of Natural Justice andtherefore deserves to be quashed."4. During course of assessment proceedings, A.O. noticed that assessee has taken unsecured loanfrom various parties including a loan of Rs.10 lacs from Chawla Machine Pvt. Ltd. Asessee was askedto furnish the PAN no., address and confirmation of the lender. Before A.O., assessee submitted thatshe cannot furnish the confirmation from Chawla Machine Pvt. Ltd. because she has dispute withthe party. The submission of the assessee was not found acceptable to the A.O. He, therefore,considered the unsecured loan of Rs.10lacs obtained by the assessee from Chawla Machine Pvt. Ltd.as unexplained and made addition u/s. 68 of the Act.5. Aggrieved by the order of Assessing Officer, Assessee carried the matter before the ld. CIT(A) whoupheld the addition made by the A.O. by holding as under:"10.3. In the assessment order, AO observed that the appellant failed to furnishconfirmation from M/s.Chawla Machine Pvt. Ltd. from whom unsecured loan wasobtained and therefore the said sum was being added u/s.68. In the writtensubmissions filed, it was contended by the .A.R. that in view of certain dispute withthe party confirmation could not be produced during the course of assessmentproceedings; copy of confirmation, annual statement of account and copy of theacknowledgement of return of income filed by the creditor were being filed during thecourse of appellate proceedings with a request to admit the additional evidence. Copyof the remand report was furnished to the appellant as an enclosure to this office I TA N o . 2 4 7 6 / Ah d / 2 0 1 2 A. Y . 0 8 - 0 9 [ S m t . H a r s h a P a r a g V o r a v s .AC I T ] Page 3 notice dt.23.04.2012, fixing the hearing on 07.05.2012. The saidnotice was duly served by RPAD. None attended on that day. Once again, vide thisoffice notice dt. 20.06.2012, the case was fixed for hearing on 21.08.2012. This noticewas also served by RPAD. Appellant did not respond. Thus, the appellant chose not tofile any rejoinder to the remand report till date. In view of the observations of theA.O. in the remand report (which remain uncontroverted), I am of the view that nointerference is called for. Impugned addition is upheld. This ground of appeal isdismissed."6. Aggrieved by the order of ld. CIT(A), Assessee is now in appeal before us.6.1 Before us, ld. A.R. reiterated the submissions made before the Assessing Officer and ld. CIT(A)and further submitted that though ld. CIT(A) had called for remand report from A.O. and which wassubmitted by the A.O., but, since assessee could not furnish its reply to the remand report, the ld.Indian Kanoon - http://indiankanoon.org/doc/186746155/2Harsha Parag Vora L/H. Of Late ... vs Assessee on 22 March, 2016CIT(A) upheld the order of A.O. He therefore submitted that ld. CIT(A) should have given somemore time to assessee to furnish its reply to the remand report. Ld. A.R. further submitted that ld.CIT(A) has also not passed a speaking order on the issue. He therefore submitted that in the interestof justice, the matter may be set aside to the file of ld. CIT(A), so that, assessee could furnish itssubmission and thereafter the matter be decided by ld. CIT(A). Ld. D.R., on the other hand,supported the orders of A.O. and ld. CIT(A) and objected to the plea of ld. A.R. of granting one moreopportunity to present its case before ld. CIT(A) and submitted that granting of second inning toassessee should not be encouraged.7. We have heard the rival submissions and perused the material on record. The issue in the presentcase is with respect to confirmation of addition u/s.68 of the Act. In the present case, we find that ld.CIT(A) had called for remand report from A.O. and thereafter had asked the assessee to file its replyand give the comments to the remand report. Ld. CIT(A) has noted that despite opportunity grantedto assessee, no reply to the remand report was furnished by assessee. He, therefore, proceeded toupheld the addition made by A.O. Before us, ld. A.R. has submitted that the assessee be granted onemore opportunity to present its case before the ld. CIT(A) and further assured that all the required IT A N o . 2 4 7 6 / Ah d / 2 0 1 2 A. Y . 0 8 - 0 9 [ S m t . H a r s h a P a r a g V o r a v s . AC I T ] Page 4details will be filed before the ld. CIT(A). It is also a fact that assessee did not furnish the replysought by ld. CIT(A) on the remand report received from A.O. Considering the aforesaid facts, weare of the view that in the interest of justice, the assessee be granted one more opportunity topresent its case before ld. CIT(A) but at the same time apathy of the assessee towards theproceedings before lower Authorities without any reasonable cause also cannot be encouraged. So inthe interest of justice, we set aside the order of ld. CIT(A) to his file with direction to decide the issuein accordance with law and after providing adequate opportunity of hearing to the assessee andsubject to the assessee making a payment of cost of Rs. 500/- to the Legal Aid and producing theproof of payment before ld. CIT(A). Further we also direct the assessee to suo motu appear before ld.CIT(A) within 1 month from the date of the order of the Tribunal for receiving the date of hearingfrom him. In the result, the ground of assessee is allowed for statistical purposes.8. In the result, the appeal of Assessee is allowed for statistical purposes.This Order pronounced in open Court on22/Sd/-(Shailendra Kumar Yadav)Judicial MemberAhmedabad: Dated. 22/03/2016True CopyS.K.Sinha/ Copy of Order Forwarded to:-1. . / Appellant2. 01. / Respondent3. 4 6 / Concerned CIT4. 6- / CIT (A)5. : 0 4, 4, / DR, ITAT, AhmedabadIndian Kanoon - http://indiankanoon.org/doc/186746155/3Harsha Parag Vora L/H. Of Late ... vs Assessee on 22 March, 20166. @ / Guard file.By order/ , / 4,Indian Kanoon - http://indiankanoon.org/doc/186746155/4

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1. Assessee individual was a wholesale dealer of old DG Sets etc. She took unsecured loan from various parties including a loan of Rs.10 lacs, but could not furnish details of the party. AO considered the unsecured loan of Rs.10 lacs as unexplained and made addition u/s. 68 of the Act. 2 CIT(A) confirmed the addition. 3 On appeal, the ITAT held as under: "Considering the aforesaid facts, we are of the view that in the interest of justice, the assessee be granted one more opportunity to present its case before ld. CIT(A) but at the same time apathy of the assessee towards the proceedings before lower Authorities without any reasonable cause also cannot be encouraged. So in the interest of justice, we set aside the order of ld. CIT(A) to his file with direction to decide the issue in accordance with law and after providing adequate opportunity of hearing to the assessee and subject to the assessee making a payment of cost of Rs. 500/- to the Legal Aid and producing the proof of payment before ld. CIT(A). Further we also direct the assessee to suo motu appear before ld. CIT(A) within 1 month from the date of the order of the Tribunal for receiving the date of hearing from him. In the result, the ground of assessee is allowed for statistical purposes.

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ITAT granted one more opportunity to assessee to present her case before CIT(A)