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2016 (4) TMI 264 - DELHI HIGH COURT

2016 (4) TMI 264 - DELHI HIGH COURT - TMI - Revision orders by CIT(A) - addition on account of the cash deposits - Held that:- In the impugned order proceeds on a factually erroneous basis that there was no response to the notice issued to M/s Enkay Electricals under Section 133(6) of the Act. Although in the impugned order the CIT-XII notes that a confirmation letter of M/s Enkay Electricals was produced, it is not discussed. The appropriate course for the CIT-XII to adopt would have been to pr .....

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re issued and the dates on which they were returned unserved are not clear. This attains significance since confirmation letters appear to have been issued in November 2011 by those very parties (copies of which have been enclosed with the rejoinder affidavit). Here, again the Court finds that the procedure adopted by the CIT-XII in dealing with the objections of the Assessee is not satisfactory. The CIT-XII appears to have simply repeated the findings of the AO.

Thus the Court set as .....

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8/2014 - Dated:- 4-4-2016 - S. Muralidhar And Vibhu Bakhru, JJ. For the Petitioner : Ms Rashmi Chopra, Mr Ruchesh Sinha and Ms Asiya, Advocates For the Petitioner : Through: Mr Dileep Shivpuri, Senior Standing counsel and Mr Sanjay Kumar, Junior Standing counsel ORDER CM No. 6862/2014 1. Allowed, subject to all just exceptions. W.P.(C) 3328/2014 & CM No.6861/2014 2. The challenge in this petition is to an order 7th March, 2014 passed by the Commissioner of Income Tax, Delhi-XII (CIT-XII) und .....

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n 143(3) of the Act, the following four major additions were made by the Assessing Officer ( AO ) to the income of the Assessee: (i) addition of ₹ 37,75,000/- pertaining to the partners capital introduced by the partners; (ii) addition of ₹ 14,45,000/- on account of the cash deposits made on 3rd September, 2008 and 22nd October, 2008 in the account; (iii) addition of ₹ 1,82,07,859/- on account of unconfirmed creditors and (iv) addition made on ad-hoc basis of ₹ 98,447/- b .....

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The main ground of challenge raised by the Assessee to the impugned order of the CIT-XII revolves around the procedure adopted in dealing with the revision petition and in failing to consider the specific points urged by the Assessee. 6. Under Section 264(1) of the Act, in examining a revision petition, the CIT may call for the record of the proceedings in which the assessment order was passed and make such inquiry or cause such inquiry to be made and, subject to the provisions of this Act, pass .....

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i Chopra, learned counsel for the Assessee, referred to para 12 of the rejoinder where with reference to para 19 of the counter affidavit, it is stated that contents of the remand report, if any, were not brought to the notice of the Petitioner. No opportunity to file any rejoinder to the remand report of the Respondent No.2 was given to the Petitioner. 8. That the remand report was not made available to the Assessee has not been denied by the Respondents. However, it is contended by Mr Dileep S .....

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e to the Assessee all the materials available with the CIT while deciding the revision petition. In a given case, there may be possibility that the remand report has something in favour of the Assessee and which the Assessee could rely on in support of its case. If the remand report contains something adverse, then the Assessee might be able to clarify it. In either event, having called for a remand report, it was incumbent for the CIT to have made available a copy thereof to the Assessee. 10. H .....

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ay Electricals. The assessment order states that in response to the letter under Section 133(6) of the Income Tax Act, Shri Devi Prasad, CA of M/s Enkay Electricals informed on 29th December, 2011on mobile that M/s Enkay Electricals, has not made any cash transaction with M/s Global India Electricals, during the financial year 2008-09. 12. The case of the Assessee, on the other hand, is that it produced before the AO a confirmation issued by M/s Enkay Electricals by a letter dated 19th December .....

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rmation letter of M/s Enkay Electricals was produced, it is not discussed. The appropriate course for the CIT-XII to adopt would have been to provide an opportunity to the Assessee to produce the said party before the CIT-XII to clarify whether the confirmation letter was in fact issued by such party. 14. As regard the other addition of a sum of ₹ 1,82,07,859/- on account of unconfirmed creditors, a reference was made in the impugned order of the CIT-XII to notices issued under Section 133 .....

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