9911796707
TMI Blog2020 (7) TMI 464X X X X Extracts X X X X X X X X Extracts X X X X ..... er and bad in law. 2. For that, the assessee company has engaged in processing of shrimps and export the same to different countries. 3. For that, the assessee company has paid processing charges against the bill raised by M/s Utkal Exports,C-57,Sahid Nagar, Bhubaneswar. M/s Utkal Exports has raised bills a tune of Rs. 57,91,795/- and tax has been deducted at source during the year. But three bills details as under : Date Amount 30/09/2013 2,64,801.00 01/11/2013 7,81,801.00 02/12/2013 9,29,542.00 raised by the M/s Utkal Exports amounting to Rs. 19,76,144/- on which tax has been deducted at source but assessee company has found some mistake in bills, so that the assessee company has paid that amount in next Financial Year i.e. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lant's book, by relying upon the documents of the processor " M/s. Utkal Export" without providing any opportunity to the appellant to explain the same or to cross examine the third party is unjust, illegal bad in law and thus the assessment order is liable to be quashed." 4. A.R. submitted that the additional ground raised by the appellant goes to the root of the matter and, therefore, the additional ground may kindly be admitted for adjudication as the same can be considered and decided on the basis of material already available on record without any further record or documents. 5. Replying to above, ld DR opposed to the admission of additional ground. However, in all fairness, ld DR submitted that the additional ground is nothing but o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessment order and submitted that on receipt of reply of M/s. Utkal Export alongwith documents, the Assessing Officer simply made addition without show causing the assessee and without allowing due opportunity of hearing to explain the differential amount as per reply of Utkal Export and other financial statements & books of account of the assessee. 8. Replying to above, ld DR submitted that as per reply received by the AO in response to notice u/s.131 of the Act, it was clearly revealed that the assessee paid an amount of Rs. 19,76,144/- as processing charges in respect of three bills raised by M/s. Utkal Export and from the reply of M/s. Utkal Export, it was also revealed that the assessee has also paid an amount of Rs. 5,71,812/- as pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is clearly contrary to the principles of natural justice as on receipt of reply from M/s. Utkal Export before making addition, the assessee should have been show caused informing him regarding reply received from M/s. Utkal Export and asking the assessee to reconcile the same. If the assessee fails to explain and reconcile the differential amount, the revenue authorities were well empowered to make addition in the hands of the assessee u/s.69A of the Act. Therefore, I have no hesitation to hold that the addition has been made in clear violation of principles of natural justice and the ld CIT(A) was not justified and correct in upholding the same. 10. Considering the totality of the entire facts and circumstances of the case, I am of the c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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