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2021 (3) TMI 932 - AT - Income TaxReopening of assessment u/s 147 - disallowance of purchases wrongly claimed by the assessee - HELD THAT:- As manifest from the record that the assessee has not produced the supporting invoices for the claim of purchases as recorded in the books of account. AO also issued notices u/s. 133 (6) to M/s. Sharda Steel Industries, M/s. P.D. Enterprises and M/s. Sahib Brick Field requiring confirmation of transactions entered with the assessee during the year under consideration. It is clear from the assessment order that there is a failure on the part of the assessee to substantiate the claim of the purchases. The assessee challenged the order of the Assessing Officer before the Ld. CIT(A) including the validity of reopening of the assessment for want of service of notice u/s. 148 - CIT(A) stated in the impugned order that several notices was given to the assessee, however the assessee has neither attended the proceedings nor submitted any written submissions or supporting documents. CIT(A) has confirmed the addition made by the AO. It is pertinent to note that once the assessee has raised a legal issue challenging the validity of the notice u/s. 148 irrespective of non-appearance of the assessee, the CIT(A) ought to have decided the said issue on merits. Since, the Ld. CIT(A) has not decided the appeal of the assessee by speaking order and the legal issue raised by the assessee has not been adjudicated, therefore, the impugned order of the Ld. CIT(A) suffers from error and illegality. Accordingly, the impugned order is set aside and the matter is remanded record of the Ld. CIT(A) for re-adjudication of the appeal of the assessee on merits by a speaking order after granting one more opportunity of being heard to the assessee. Appeal of the assessee is allowed for statistical purposes.
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