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2020 (2) TMI 65 - AT - Income TaxAddition u/s 68 - unexplained cash credit - HELD THAT:- It is the submission of the ld. Counsel for the assessee that the assessee has filed various documents to substantiate the identity and credit worthiness of the share applicants and genuineness of the transactions. It is to be noted here that the decision of the Hon’ble Supreme Court in the case of PCIT vs. NRA Iron & Steel [2019 (3) TMI 323 - SUPREME COURT] and NDR Promoters Pvt. Ltd.[ 2019 (1) TMI 1089 - DELHI HIGH COURT] were pronounced subsequent to the orders passed by the lower authorities. Neither the assessee nor the Revenue had the benefit of these two decisions wherein the issue of share capital at high premium to bogus companies have been elaborately discussed. Considering the totality of the facts of the case and in the interest of justice, we deem it proper to restore the issue to the file of the AO with a direction to give one final opportunity to the assessees to substantiate its case by producing the directors of the investor companies for recording of their statements and produce evidence to the satisfaction of the AO regarding the identity and credit worthiness of the investor companies and the genuineness of the transaction. The AO shall decide the issue as per fact and law after giving due opportunity of being heard to the assessee Order of assessing officer without giving the adequate opportunity to the appellant - HELD THAT:- As per the provisions of section 250(4) and 250(6), the ld.CIT(A) is supposed to make further enquiry as he thinks fit or direct the AO to make further enquiry. While disposing of the appeal, he shall pass the order in writing and shall state the points for determination, the decision thereon and the reason for the decision. Even though the assessee has not appeared before him, the ld.CIT(A) cannot dismiss the appeal for want of prosecution and he is supposed to pass a speaking order on merit. Since, in the instant case, the ld.CIT(A) has failed to follow the law, therefore, we deem it proper to restore this issue to the file of the CIT(A) with a direction to pass a speaking order on this issue after giving an opportunity to the assessee to substantiate its case. The assessee is also hereby directed to appear before the CIT(A) and cooperate in completion of the hearing without seeking adjournment under any pretext, failing which the ld.CIT(A) is at liberty to pass appropriate order as per law. We hold and direct accordingly.
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