TaxTMI 
TaxTMI 
2025 (8) TMI 1597
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....rying and trading in stone products. In the course of reassessment proceedings initiated u/s 147 based on an information received from the office of the Dy. Director of Income-tax (Investigation), it was alleged that M/s. Umiya Industries, operated by Shri Alpeshkumar Vitthalbhai Patel, was a paper concern which had provided accommodation entries. The Assessing Officer, relying solely on the statement of Shri Alpeshkumar Patel, treated the assessee's advance of Rs. 50,00,000/- to Umiya Industries towards purchase of machinery as bogus and made addition u/s 69 of the Act. 2.2 In the first round of appeal, the CIT(A) dismissed the appeal ex parte. The assessee preferred appeal before the Tribunal, and the Co-ordinate Bench, vide order date....
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....pump sets was carried out at the given address by the Umiya Industries. Therefore, the above entity is found to be shell entity which is operating only on paper." 2.4 The above extract shows that neither was the supplier summoned for cross-examination, nor was any statement of the bank officer recorded. The order is wholly silent on compliance with any of the binding directions of the Co-ordinate Bench, and instead reiterates conclusions based on the same untested evidence previously found inadequate. 4. Aggrieved by the order of CIT(A), the assessee is in appeal before us raising following grounds of appeal: 1. On the facts and circumstances of the case as well as law on the subject, the learned CIT (Appeals) has erred in co....
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....ai Patel, a proprietor of M/s Umiya Industries as per the specific direction of ITAT in the first round. 7. On the facts and circumstances of the case as well as law on the subject, the learned CIT(A) has erred in confirming addition of Rs. 50,00,000/- without obtaining the statement of the bank officer recorded regarding the loan sanctioned against the machinery with respect to its claim of bogus purchase as per the specific direction of ITAT in the first round. 8. It is therefore prayed that the above addition/disallowance made by the assessing officer may please be deleted. 9. Appellant craves leave to add, alter or delete any grounds) either before or in the course of hearing of the appeal. 5. During the co....
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....6.1 We are constrained to observe that this conduct amounts to a gross dereliction of statutory duty. The Tribunal's order was not a mere advisory opinion, but a binding adjudication under section 254(1) of the Act. Non-compliance with such directions vitiates the proceedings and undermines the rule of law. In this case, despite the solemn directions issued in the earlier round, the CIT(A) has, by act of omission, rendered the entire appellate proceeding a farce. Such defiance, even if arising from indifference or administrative inertia, amounts to judicial insubordination and warrants strict consequences. 6.2 In view of the foregoing discussion and the undisputed fact, also fairly conceded by the Ld. DR, that the directions issued by th....