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2023 (5) TMI 699 - AT - Income TaxAdditions towards sundry creditors - there is an increase in sundry creditors when compared to previous financial year even though there is no significant business activities in the impugned financial year - HELD THAT:- As assessee has explained trade payables appearing in their books of accounts with necessary evidences and the ld. CIT(A), after considering relevant facts has rightly deleted additions made by the Assessing Officer towards trade payables u/s. 68 of the Act. Thus, we are inclined to uphold the findings of the ld. CIT(A) and dismiss appeal filed by the revenue. Validity of assessment order passed u/s. 143(3) - directions of the Joint Commissioner of Income-tax u/s. 144A without giving an opportunity to the assessee to furnish its reply to the proposed directions of the JCIT, as per provisions of section 144A - HELD THAT:- Directions issued by the JCIT is on the lines on which the investigation connected to the assessment should be made and also the Assessing Officer has made additions as per the directions of the JCIT issued u/s. 144A - assessment order framed by the Assessing Officer is on the basis of directions issued by the JCIT u/s. 144A of the Act and further, said directions is prejudicial to the assessee, the JCIT ought to have given an opportunity to the assessee to be heard before issuing such directions. Since, the JCIT had issued directions u/s. 144A of the Act, without providing an opportunity to the assessee to be heard as provided under proviso to section 144A of the Act, in our considered view the whole proceedings including assessment proceedings is vitiated and consequent assessment order passed by the Assessing Officer is liable to be quashed. Argument of the ld. DR since the Assessing Officer did not refer to the directions issued by the JCIT u/s. 144A of the Act, it cannot be presumed that the assessment framed is in pursuant to directions u/s. 144A of the Act - We find that although, the Assessing Officer did not specifically referred to the directions of the JCIT issued u/s. 144A in the assessment order, but if you go through the directions and the assessment order, the directions issued by the JCIT is in lines on which the investigation connected with the assessment should be made. Therefore, we are of the considered view that, the assessment made in pursuant to directions of the JCIT issued u/s. 144A of the Act, without providing opportunity to the assessee to be heard as per provisions of section 144A of the Act is illegal, void and liable to be quashed. Thus, we quash the assessment order passed by the Assessing Officer u/s. 143(3) dated 29.03.2016.
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