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As ITAT admitted additional evidence, it sent matter back to AO.
As ITAT admitted additional evidence, it sent matter back to AO.
Assessee Co. did trading activities. In return, it declared net loss. In reassessment AO made addition of amt. received from Divya Secfin Pvt. Ltd., as accommodation entry u/s 68 (of Income Tax Act, 1961). On appeal CIT(A) upheld it. On appeal ITAT held, It is well settled law that for negligence of counsel, assessee should not be made to suffer. Therefore, court admitted the additional evidence of the PB & restored matter back to the file of AO to examine issue de novo.-500537
Facts in brief:
1. Assessee Company did the trading activities.
2. In return of income, it declared net loss of Rs. 45,540/-.
3. Assessment was reopened u/s 148 (of Income Tax Act, 1961) and after considering the assessee's submissions, the AO made addition of amount received from Divya Secfin P:vt. Ltd., as accommodation entry u/s 68 (of Income Tax Act, 1961), ITA 5613/Del/2014 Achievers Marketing Pvt. Ltd. 1961 and Rs. 31,637/- paid for increase in authorized share capital, thereby determining the total income at Rs. 4,11,097/-.
4. On appeal CIT(A) upheld it.
On appeal ITAT held,
5. It is well settled law that for the negligence of counsel, the assessee should not be made to suffer. I, therefore, admit this additional evidence from pages 1 to 71 of the PB and restore the matter back to the file of AO to examine the issue de novo. I may clarify that the AO will, after examining the additional evidence, send the summons at given address.
6. If still the summons are not served on assessee, then the addition will stand confirmed. If the summons are served and principal officer appears then AO will decide the issue on merits.
In the result, assessee's appeal is allowed for statistical purposes in terms of aforementioned observations.
Case Reference- Income Tax Appellate Tribunal - Delhi Achievers Marketing Pvt. Ltd., ... vs Assessee
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