TMI Blog2020 (2) TMI 1042X X X X Extracts X X X X X X X X Extracts X X X X ..... ty has been fastened on the assessee merely based on confirmation filed by a concern without providing an opportunity of cross examination. It is not a case where the whereabouts of M/s Tinka Stones was not known to the Revenue as apparent from commission of enquiry conducted through ACIT Mumbai on such entity or anything on record to suggest that there was any practical difficulty in arranging the cross-examination. On merits, we find that the assessee has already written off the said amount in its financial statements for the financial year ended 31.03.2019 and has offered the amount to tax in its return of income filed for AY 2019-20. Therefore, where the undisputed facts are that the amount of advance written off has already been off ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ness and the ld. AO have not rebutted any such evidences placed on record. 4. That the appellant craves right to amend. add, delete or withdraw any of the grounds of appeal either before or at the time of hearing of this appeal. 2. During the course of hearing, the ld AR submitted that in the present case, M/s Tinka Stone Pvt. (Formerly known as M/s Nagma Stone Pvt. Ltd.) has placed an order with the assessee company for a gangsaw machine and paid ₹ 10 Lacs as an advance against the order on 23.09.2004. After receiving the advance, the assessee manufactured the machine and after completion, informed Tinka Stone for checking of machine and to make balance payment. However, Tinka Stone did not respond to it and that's w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... order passed under section 143(3) of the Act and the same was upheld by the Ld CIT(A) and later, set aside by the ITAT Jaipur Bench vide its order dated 28/08/2014 with the specific directions issued to AO as under: We have heard the rival contentions of both the parties and perused the material available on the record. As per the Principles of natural justice, the assesse is to be provided cross examination of M/s Nagma Stones Pvt. Ltd., Mumbai. Therefore in the interest of justice, we set aside the assessee's case to the Assessing Officer for de nova and it is directed that reasonable opportunity of being heard is given to the assesse before deciding the case in accordance with law. The appellant is also directed to cooperate wi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rectors stating that no repayment has been made and bank statement of the assessee company evidencing that no such repayment has been made from the bank of the assessee company and such facts has been duly mentioned by the AO in the original assessment order passed on 28 December 2007. The assessee Company has also made efforts to collect the information from the banker of Tinka Stone but the banker has turn down the request of assessee company stating that the same could only be provided to its account holder. 7. It was further submitted by the ld AR that in order to unveil the truth, there are only two deciding factors either cross examination of Tinka Stone or specific information of cheque details from Tinka Stone's bank account. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... follow the judgments in its true letter and spirit. It was necessary for judicial unit and discipline that all the authorities below the Tribunal must accept as binding the judgments of the Tribunal. The Assessing Officer being an inferior officer vis-o-vis the Tribunal, was bound by the judgment of the Tribunal and the Assessing Officer should not have tried to distinguish the same on untenable grounds. In this behalf it will not be out of place to mention that in the hierarchical system of courts which exists in our country, it is necessary for each lower tier including the High Court, to accept loyally the decisions of the higher tiers . Such principle in the present case has been grossly violated by the the AO and ld CIT(A) as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /bank statement and claimed that advance money was returned back through bank, however, being an old matter, the cheque details were not given. Further, she has relied on the order of lower authorities. 11. We have heard the rival contentions and pursued the material available on record. We find that it is a case of set-aside proceedings and the matter was earlier set-aside by the Tribunal with a specific direction to provide cross-examination of M/s Tinka Stones to the assessee company. Both the lower authorities having acknowledged this fact have failed to follow the specific direction and thus, it is not just a case of judicial indiscipline but also a violation of principle of natural justice where liability has been fastened on the a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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