Bogus purchase addition restored for fresh adjudication after evidence was not properly considered and hearing was inadequate.

An addition for alleged bogus purchases was sent back for fresh adjudication because the assessee's documentary evidence on purchase and movement of goods had not been properly examined. The assessment had been completed ex parte under section 144 read with section 147, and the absence of proper consideration of evidence and reasonable opportunity of hearing made restoration necessary. The Assessing Officer must re-decide the matter after granting the assessee a fair opportunity to present its case.

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Issues: Whether the addition made on account of alleged bogus purchases required fresh adjudication for want of proper consideration of evidence and reasonable opportunity of hearing.

Analysis: The assessment had been completed ex parte under section 144 read with section 147 of the Income-tax Act, 1961. The assessee asserted that documentary evidence showing purchase and movement of goods had not been considered by the lower authorities. As the material evidence was not examined and adequate opportunity had not been granted, the matter required restoration to the Assessing Officer for fresh consideration.

Conclusion: The issue was restored to the file of the Assessing Officer for fresh decision after granting reasonable opportunity to the assessee.

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