TMI Blog2021 (4) TMI 437X X X X Extracts X X X X X X X X Extracts X X X X ..... on principle of natural justice, we do not find any infirmity in such action of the ld. CIT(A) in admitting such additional evidences. It is also noted that these additional evidences have been sent to the Assessing Officer for necessary examination and therefore, as far as Revenue s interest is concerned, the same has been duly safe-guarded by way of providing the reasonable opportunity to the AO. - ITA No. 1239/JP/2019 (Assessment Year :2013-14) - - - Dated:- 1-3-2021 - SHRI SANDEEP GOSAIN, JM AND SHRI VIKRAM SINGH YADAV, AM Revenue by: Sh. Amrish Bedi (CIT) Assessee by: Sh. P. C. Prawal (CA) ORDER PER: VIKRAM SINGH YADAV, A.M. This is an appeal filed by the Revenue against the order of ld. CIT(A)-22, Alwar dated 20.08.2019 for A.Y 2013-14 wherein the limited ground raised by the Revenue relates to acceptance of additional evidences submitted by the assessee before the ld. CIT(A) in contravention of Rule 46A(1) of the I.T. Rules. 2. Briefly, the facts of the case are that the assessee has filed its return of income declaring loss of ₹ 36,710/- on 28/09/2013. The assessment was completed u/s 144 of the Act wherein the assessed income was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... over the possession of the factory in December, 2014 due to assessee s failure to repay the loan amount to the Bank. It was submitted that there was heavy dispute among the Directors due to loss in the company and Bank has taken possession of the factory premises under SARFAESI Act on 25.05.2015. Subsequently, the bank has disposed off whole properties of the company and now the case is before Debt Recovery Tribunal. The copy of possession letter of bank, notice of bank, copy of case before Debt Recovery Tribunal were submitted before the ld. CIT(A). It was accordingly submitted that as the assessee did not receive the notice and the assessment was completed ex-party u/s 144, the assessee applied for certified copies of the assessment order and filed appeal before ld. CIT(A). The ld. CIT(A) has rightly appreciated the factual position of the assessee and has condoned the delay in filing the appeal and in acceptance of additional evidences. 5. It was further submitted that it is not a case where additional evidences were accepted and decision arrived at by the ld. CIT(A) rather the additional evidences were sent to the Assessing Officer for necessary verification and basis such v ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s and cross reply of the appellant including judicial citations given therein. Following facts have emerged; 1. That the appellant company has its factory at Bhiwadi and doing the business in food industry. 2. That the appellant company was doing Business at Bhiwadi but the business was discontinued because the Jammu Kashmir Bank has taken the possession of the Factory in December 2014 due to failure to repay the loan amount of the Bank. There was heavy Dispute among the Directors due to loss in the company and Bank has taken possession under SARFAESI Act on 25/05/2015. Bank has disposed off whole properties of the company and now the case is before Debt Recovery Tribunal. 3. That the appellant company has submitted that they have not received any notice during assessment proceedings as the company was closed because of bank takeover and therefore could not file any details. 4. That there is a loan balance as per the balance sheet amounting to ₹ 4,03,63,046/-. Since the case remain unrepresented at the assessment level accordingly, the A.O has treated the loan amount as unexplained and added it to the income of the assessee company. 5. That the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... K Bank of Both the Accounts and loan sanctioned letter issued from bank to confirm the above amount. Both loans is given by J K Bank whose sanction letter is also enclosed and balance as on 31.03.2013 is matched with books of accounts of the assessee. Hence the identity, creditworthiness of the bank and genuineness of transact ion is proved. I have considered written submission and all facts of the case mentioned supra. In facts it is credit balance of Banks CC Limit and loan of Jammu Kashmir Bank as on 31.03.2013. Therefore, additions made on account of unexplained credit/ unsecured loans is not suitable. The AO has submitted that all the loan amount of ₹ 4,03,63,046/ - are basically credit balance of CC limit and loan amount of J K Bank as on 31/03/2013. Therefore, there is no justification for making addition of the amount which already stands explained as loan advanced by the Bank. Accordingly, the addition of ₹ 4,03,63,046/- is deleted and the appellant s ground of appeal on this issue is allowed. 7. Similar findings are recorded by the ld CIT(A) in respect of other additions made by the Assessing Officer while passing ex-parte order ..... X X X X Extracts X X X X X X X X Extracts X X X X
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