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2020 (9) TMI 145 - AT - Income TaxDisallowance of bogus liabilities - assessee has failed to bring any evidence on record to support his claim to prove the nature of liabilities, party names, etc. - unascertained trade liabilities - Revenue contended that the deletion has been made by the ld. CIT (A) without providing an opportunity of being heard to the AO for verifying the submissions made by the ld. AR for the assessee - HELD THAT:- CIT(A) has neither himself examined the documents nor he has got the same verified from the AO by calling remand report rather accepted the contention of the ld. AR for the assessee as a gospel truth and proceeded to delete the addition. So, we agree with the contentions raised by the Revenue that the deletion has been made without giving an opportunity of being heard to the AO for verifying the submissions/evidence filed by the assessee. So, in these circumstances, we deem it necessary to remit the issue back to the ld. CIT (A) to decide afresh in accordance with law after providing an opportunity of being heard to the assessee as well as AO, hence ground no.1 of AY 2012-13 is determined in favour of the Revenue for statistical purposes. Disallowance @ 25% on account of bogus expenditure claimed under the head ‘bogus liabilities’ - Addition no supporting voucher/evidence has been produced by the assessee - HELD THAT:- Bare perusal of the findings returned by the ld. CIT (A) goes to prove that disallowance @ 25% made by the AO has been restricted to 10% merely on the basis of whims and fancies and without perusing any record. No doubt, disallowance has been made by the AO also purely on ad hoc basis but on failure of the assessee to support the claim with any voucher/evidence. In these circumstances, the ld. CIT (A) was not expected to restrict the disallowance to 10% also on ad hoc basis. So, we deem it necessary to set aside the issue to the ld. CIT (A) to decide afresh in accordance with the law by providing opportunity of being heard to the parties. So, ground no.2 of AYs 2012-13 & 2014-15 is determined in favour of the assessee for statistical purposes.
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