In
Bholenath Foods Limited v. Deputy Commissioner of Income Tax, the Delhi
Bench of the Income Tax Appellate Tribunal examined the validity of an
appellate order confirming addition of ₹1.35 crore on account of alleged bogus
purchases and accommodation entries for Assessment Year 2012–13.
The
assessment was reopened on the basis of information received from the
Investigation Wing alleging that the assessee had made purchases from a
proprietorship concern controlled by an accommodation entry provider. The
Assessing Officer made additions under Section 68 relying primarily on a
third-party statement. The CIT(A), National Faceless Appeal Centre, upheld the
reassessment and confirmed the addition, observing that the assessee failed to
furnish sufficient documentary evidence to establish the genuineness of
purchases.
The
Tribunal noted that while the CIT(A) listed various documents and evidences
required to establish genuineness of purchases, the appellate authority
dismissed the appeal without deciding the issues in accordance with the
mandatory requirements of Section 250(6), which obligates the CIT(A) to pass a
reasoned order stating points for determination, decisions thereon, and reasons
for such decisions.
Holding
that the impugned appellate order was passed in violation of statutory mandate
and principles of natural justice, the ITAT set aside the order of the CIT(A)
and restored the matter for fresh adjudication.
The Tribunal directed that
adequate opportunity be granted to the assessee to furnish complete details and
that the appeal be decided afresh by a speaking order in accordance with law.
Accordingly,
the appeal was disposed of by way of remand.
Source Link- https://itat.gov.in/public/files/upload/1767785814-ackzsA-1-TO.pdf
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