2020 (9) TMI 145

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....nue') by filing the present appeals sought to set aside the composite impugned order dated 28.09.2016 passed by the Commissioner of Income-tax (Appeals)-31, New Delhi qua the assessment years 2012-13 & 2014-15 on the grounds inter alia that :- "ITA NO.6087/DEL/2016 (AY 2012-13) 1. On the facts and in the circumstances of the case, the Ld. CIT(A) has erred in law and on facts in deleting the expenditure (i.e. Rs. 3,78,58,892/-) treating them as unascertained trade liabilities without giving any opportunity to the AO for verifying the submissions filed by AR which he has not submitted before AO. 2. On the facts and in the circumstances of the case, the Ld. CIT(A) has erred in law and on facts in restricting the addi....

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...., 1961 (for short 'the Act') on 20.06.2013 in M/s. PACL Group of cases wherein premises of the assessee company also covered, proceedings u/s 143 (3) were also initiated and statutory notice u/s 153A/143(2) along with detailed questionnaire were issued and served requiring the assessee to file the return. In AY 2012-13, Assessing Officer (AO) made addition of Rs. 4,46,53,043/- on account of bogus claim of expenditure under the head 'other liabilities' on the grounds that though in the balance sheet assessee company had shown this amount as other liabilities but has failed to bring on record any documentary evidence to prove the nature of liabilities, party names, etc.. AO also made addition of Rs. 62,57,170/- @ 25% out of the claim by the a....

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.... made by the ld. CIT (A) without providing an opportunity of being heard to the AO for verifying the submissions made by the ld. AR for the assessee. Ld. DR deleted the addition of Rs. 3,78,58,892/- made by the AO by returning following findings :- "4.3 I have considered the findings recorded by the ld. AO as per the assessment order, the submission of the appellant the position of the law and the facts of the case on record. For the Assessment Year 2013-13, the ld. AO disallowed a sum of Rs. 4,46,53,043/- as bogus liabilities. The Id. AR contended that the appellant was not confronted before the said disallowance was made. On going through the details, it is seen that the aforesaid amount included a sum of Rs. 65,14,000/-. ....

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....s. 2,80,151/- (Rs. 3,51,96,077 - Rs. 3,49,15,926), holding the same to be unascertained liability. Accordingly, the ground no. 1 of Assessment Year 2012-13 is partly allowed confirming the addition of Rs. 67,94,151/- (Rs. 65,14,000/- + Rs. 2,80,151/-)." 7. Bare perusal of the findings returned by the ld. CIT (A) in para 4.3 & 4.3.1, extracted above, goes to prove that the ld. CIT(A) has neither himself examined the documents nor he has got the same verified from the AO by calling remand report rather accepted the contention of the ld. AR for the assessee as a gospel truth and proceeded to delete the addition. So, we agree with the contentions raised by the Revenue that the deletion has been made without giving an opportunity of being hea....

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.... the ld. CIT (A) to decide afresh by providing an opportunity of being heard to the parties. So, ground no.1 of AY 2014-15 is determined in favour of the Revenue for statistical purposes. GROUND NO.2 OF ITA NO.6087/DEL/2016 (AY 2012-13) ITA NO.6089/DEL/2016 (AY 2014-15) 9. AO made an addition of Rs. 62,57,170/- and Rs. 85,53,147/- by way of disallowance @ 25% on account of bogus expenditure claimed under the head 'bogus liabilities' on the ground that no supporting voucher/evidence has been produced by the assessee. Ld. CTI (A) restricted the disallowance to 10% by returning following findings :- "5.3 I have carefully considered the findings recorded by the ld. AO as per the assessment order, the facts of the case on re....