2018 (12) TMI 1520

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.... Tribunal") dated 18.06.2010, in I.T.A.No.2094/Mds/2008 for the assessment year 2004-05. 2. The appeal has been admitted, on 28.02.2011, on the following substantial questions of law:- "(i) Whether on the facts and in the circumstances of the case, the Income Tax Tribunal is right in law in deleting the additions of 1.59 crores under the head Sundry creditors without affording fair and proper opportunity to department for verifications of the documents filed? (ii) Whether on the facts and in the circumstances of the case, the Income Tax Tribunal is right in law in upholding the orders of CIT(A) without even extending time for verification of the documents filed at the appellate stage or remanding back the said issue to ....

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....income of the assessee. 6. On appeal before the CIT(A), the assessee stated that his failure to produce the required details was on account of "long illness suffered by him" while the assessment proceedings were in progress and medical certificate from a qualified doctor was also filed in support of his plea. Though the CIT(A) does not state as to who was the person, who had taken ill, it is submitted that it is the Managing Director of the assessee, who had fallen ill. The CIT(A) allowed the assessee to file some documents and details and called for a remand report from the Assessing Officer, who has submitted the same on 27.02.2008. Insofar as Sundry creditors are concerned, this is what the Assessing Officer states in his remand repor....

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....n fact, these records were not placed before the Assessing Officer at the first instance. Therefore, the CIT(A) could have undertaken the exercise as first appellate authority, and examined the genuinity and admissibility of the documents/confirmation of vouchers, etc., and on being satisfied, should have recorded as to what extent the Assessing Officer had explained the transaction and confirmed the same. Without embarking upon such exercise, the CIT(A) erroneously deleted the entire addition. Added to this, the Tribunal also confirmed the order, by dismissing the appeal filed by the Revenue. In paragraph 2 of the order, though the Tribunal states that it is not a fit case to restore the issue to the file of the Assessing Officer, howev....

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....s of no assistance to the case of the assessee and clearly distinguishable on facts. It is not clear as to why the documents, which were produced before the CIT(A), were not produced before the Assessing Officer, though the assessee was represented by a Chartered Accountant as its Authorised Representative. Furthermore, the CIT(A) does not state as to on account of whose illness, the documents could not be produced. In any event, as pointed out by us earlier, no exercise has been done for correlating the document, its validity and genuineness and to consider to what extent the assessee has explained the case. Thus, a half baked enquiry has resulted in an erroneous order passed by the CIT(A). Thus, we are of the clear view that the order pas....