2026 (4) TMI 325

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....w, but the Hon'ble CIT(A) did not deal with this aspect at all while passing an Order in spite of arguing this point vehemently during virtual hearing. There was change of opinion by the assessing officer on three occasions before making an addition of Rs. 45,08,517. The Order u/s 143 read with 147 was passed without following principles of justice in as much as neither the third party statement of Elite Chemicals taken by department's Investigation Wing, Jodhpur, was ever supplied to the assessee, nor a cross examination of said 'third party' was allowed to the assessee. A sum of Rs. 45,08,517/- was disallowed by CIT(A) based on wrong assumption about local business practice and on totally different pretext of lack of evide....

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....stated that they have received only commission on sale of goods. There was no actual purchase and sale of the goods of the assessee upto 31-03-2013. The goods were used to sell at higher prices than it was sent from the assessee company. The difference of sale at higher price was explained as payment of freight, service tax and VAT. The Assessing Officer observed that the assessee has not proved these expenses through supporting documentary evidences such as bills/vouchers in support of claiming genuineness of expenses of transportation regarding sale. Thus, in absence of evidences, the Assessing Officer disallowed Rs. 45,08,517/- in respect of deduction on account of transportation of sales. 4. The assessee filed appeal before the CIT(A....

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....ly withdrawn for want of investigation/inquiry 14.06.2019 143(2) notice 24.07.2019 142(1) notice 31.07.2019 Objections filed 09.09.2019 Objections disposed off 09.09.2019 142(1) notice 12.09.2019 Reply 07.11.2019 Notice u/s 142(1) 12.11.2019 Reply Annexures 25.11.2019 143(3) rws 147 order @ Rs. 1.05 crores 27.09.2021 CIT(A) submissions   Elite Chemicals Ledger   Additional evidences 18.03.2024 CIT(A) dismissed the appeal The ld. A.R. submitted that there was a change of opinion which is not applicable for reopening u/s. 148 of the Act. The ld. A.R. relied upon the decision of Niko Resources Ltd. 51 taxman.com 568 (Guj) and Adani Enterprise 101 taxman.....

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....itional evidences submitted by the assesses. 6. The ld. D.R. submitted that the reopening was valid as the notice u/s. 154 was issued on 15-02-2018 and order u/s. 154 was passed on 26-02-2019. Though the said order was withdrawn by 22-03-2019, the notice u/s. 148 was validly issued. The ld. D.R. relied upon the assessment order and the order of the CIT(A). 7. We have heard both the parties and perused all the relevant materials available on record. It is pertinent to note that the facts remains that the assessee filed original return of income and the assessment was completed u/s. 143(3) on 12-03-2015 wherein the assessee has disallowed the total net transport expenditure to the extent of Rs. 7.5 lacs. This fact was not at all taken i....