2012 (7) TMI 1028 - AT - Income Tax

Summary

Issues involved: Appeal against order of Ld. CIT(A) for assessment year 2004-05. Assessee raised grievance regarding addition made by AO without proper opportunity of being heard.

Assessment of Fresh Capital:
During assessment, AO found partners introduced fresh capital. Assessee claimed it received gifts, supported by gift deeds and bank statements. AO summoned parties u/s. 131, but only two appeared. AO added capital amount of Rs. 7,20,000 and Rs. 2,00,000 for stock discrepancy.

Denial of Natural Justice:
Assessee pleaded not receiving copy of AO's recorded statements, hindering appeal attendance. Ld. CIT(A) dismissed appeal ex parte, citing legal precedents. Assessee's counsel argued for repeated requests of statement copies, highlighting denial of natural justice.

Tribunal Decision:
Tribunal considered submissions, noting repeated requests for statement copies and adjournment applications. Found denial of natural justice by lower authorities. Directed Ld. CIT(A) to re-decide appeal after providing reasonable opportunity to assessee. Appeal allowed for statistical purposes.