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2016 (10) TMI 91 - AT - Income TaxAddition on account of discrepancy in expenditure incurred by the assessee under the head purchase, advertisement & legal expenses - differences in account balance reflected in the books of accounts of the assessee vis-à-vis in the books of accounts of the two parties - information not forwarded/confronted to the assessee for comments and rebuttal - Held that:- The A.O. issued notices u/s 133(6) of the Act to the two parties i.e. M/s Carat Media Service Pvt. Ltd. and M/s Oglivy & Mather Pvt. Ltd. asking information regarding the services rendered to the assessee. The information were received by the AO but the information obtained by the AO from these two parties were not forwarded/confronted to the assessee for comments and rebuttal.The assessee was prejudiced by the action of the AO as the said information was used against the assessee by the AO without confronting the same to the assessee. The assessee on its part had also failed to produce its books of accounts and purchase bills before the AO for verification. These books of accounts as well purchase invoices were not even produced by the assessee before the learned CIT(A). In our considered view and in the interest of justice, we are inclined to restore the matter to the file of the A.O. to de-novo decide the issue’s on merits and hence we set aside the order of learned CIT(A). The A.O. shall forward to the assessee all the information which was obtained by the AO in pursuance of notices issued u/s 133(6) to these two parties namely M/s. Carat Media Service Private Limited and M/s Ogilvy and Mather Private Limited. The assessee is directed to produce all the relevant evidences and explanations before the AO in its defense to justify and defend its claims and contentions to reconcile the difference. Needless to say proper and adequate opportunity of hearing shall be granted by the AO to the assessee in accordance with principles of natural justice in accordance with law
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