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TMI Blog2014 (9) TMI 705X X X X Extracts X X X X X X X X Extracts X X X X ..... 1961 (Act, for short) dated 26th December, 2008 records that notices under Section 143(2) of the Act were issued and served by affixture on 28th November, 2007. Thereafter, questionnaire was issued on 31st April, 2008 along with notice under Section 142(1), but no compliance was made. On 9th July, 2008, another notice was sent at the address of the assessee company, but there was no response. The assessment order states that the address of the respondent-assessee was confirmed from the data for the next Assessment Year, i.e., 2007-08 and notice was sent, but it was returned back unserved with the remark that no such company existed on the said address. Addition of Rs. 90,00,000/- was made on account of fresh investments as details with rega ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f Rs. 50,00,000/- and Crown Buildtech Private Limited of Rs. 40,00,000/- could be easily explained. He observed that the payments were made by way of cheque or by bank transfer. The respondent-assessee had established sources in the form of secured loan from ICICI Bank of Rs. 10.77 lacs, unsecured loan of Rs. 12.25 lacs and advance of Rs. 2 crores for sale of land from Amazing Realter Limited, unrelated and a third party. Accordingly, the addition was deleted on merits holding that the investment of Rs. 90,00,000/- stands explained. 5. Aggrieved, Revenue preferred an appeal along with appeal against the order deleting penalty for concealment under Section 271(1)(c) of the Act. Paragraphs 6 to 8 of the order of the Income Tax Appellate Trib ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as stated would be taken at the first appellate stage. The exact wordings in the second half of the said letter is as under:- "...You are therefore requested to verify the assessment records of the assessee and submit a Remand Report on the veracity of the facts given by the AR of the assessee, since I could not set aside the assessment to you. You should also verify the books of accounts of the assessee as is done in the routine manner in a scrutiny case. If you detect any irregularity in books of accounts, so that remedial action can be taken at the first appellate stage. We can retrieve any loss of revenue by our joint endeavour if you are together at this stage. You may feel free and bring the assessment records and let us discuss any ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ctum should have been highlighted. It was not stated and highlighted before the Tribunal why the remand report did not deal with the merits. The Tribunal in view of the factual finding recorded by the Commissioner of Income Tax (Appeals) and as the Revenue was not able to controvert and deny the said finding, had no option but to dismiss the appeal. The finding recorded in paragraph 8 of the order passed by the Tribunal reads as under:- "8. We have carefully considered the submissions of the learned DR. We have also carefully gone through the assessment order as well as the order passed by the CIT (A). The order passed by the Assessing Officer, as mentioned earlier is an ex parte order. There is a reference of remand proceedings in the ord ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nance by the Revenue is not of a desired and acceptable level. The file in question produced before us is page numbered, but it is apparent that several papers and documents are missing. The Revenue cannot claim that they had not received letters dated 27th January, 2010 and 19th April, 2010 and the application under Rule 46A as these are specifically mentioned by the Assessing Officer himself in his letter dated 24th June, 2010. The first letter asking for remand report is dated 4th November, 2009 and it took the Assessing Officer more than six months to respond to the said letter, but the response was not complete. It did not refer to the merits and only dealt with the question of change of address. In view of the aforesaid factual positi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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