2021 (10) TMI 211

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....- "1. The Ld. Assessing Officer, has erred in law and on facts in passing assessment order u/s. 148/144 of the Income Tax Act, 1961 without serving notice to the Assessee Company as prescribed in the act. The order which does not comply with the requirement of Section 147/148 of Income Tax Act, 1961 is nullity as the order of Assessment was passed U/s 144 of the Income Tax Act, 1961. 2. The Ld. Assessing Officer, erred in law and on facts in passing assessment order u/s. 148/144 of the Income Tax Act, 1961 without giving opportunity of being heard to the Assessee. The CIT(A) has further erred in law in partly allowing the appeal but by maintaining substantial additions on account of Sundry Creditor and other grounds. ....

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.... assessee despite service, AO proceeded to frame assessment under section 144 of the Act. 3. Assessee is into manufacturing of auto-parts. AO noticed form the documents available on record that there is an increase in the sundry creditors during the year under assessment to the tune of Rs. 86,71,196/-. AO proceeded to make addition thereof on the ground that since detail of sundry creditors has not been filed by the assessee, increase in the sundry creditors has been treated income of the assessee from undisclosed sources. AO also made addition of Rs. 70,762/- on account of interest received from M/s. Intec Securities Ltd. on which tax at source has been deducted under section 194A of the Act. Accordingly, AO framed the assessment u/s. 1....

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....able to be confirmed. 9. When we peruse the order passed by the AO which carries the categoric observation made by the AO that, "It is observed that the assessee is engaged in the manufacturing of auto parts. Copies of the bank statement of the accounts maintained by the assessee company are available on record. Copy of 'audited' Balance Sheet, P&L account with Form No. 3CD were also obtained. But the authenticity of the audit report could not be established due to paucity of time and moreover, no address of the auditor/CA has been mentioned on the papers signed by the auditor/CA.", the addition has been made on the basis of surmises in haste. 10. Even the findings returned by ld. CIT(A) that, "In the course of appeal proceedi....