The case involves Manohar Lal & Sons, a partnership firm, challenging the decision of the Income Tax Appellate Tribunal, Delhi Bench. The firm contests an order related to alleged bogus purchases that were added to their income for the Assessment Year 2008-09.
The appellant, Manohar Lal & Sons, faced an ex parte order by the CIT(A), New Delhi, on January 16, 2019, which upheld the Assessing Officer’s addition of Rs. 10,27,531 as bogus purchases. Initially declared income was significantly lower, leading to a reassessment and increased tax liability.
Detailed discussions took place under the judgment of Shri R.K. Panda, Accountant Member, and Ms. Suchitra Kamble, Judicial Member. The absence of the appellant during earlier hearings led to an ex parte decision, which was contested in this tribunal hearing.
The primary issue was the validation of the bogus purchase additions made by the AO, which the CIT(A) supported. The tribunal recognized the need for further examination and remanded the case back to the CIT(A), allowing one final opportunity for the appellant to present their case effectively.
The decision to remand the case back offers a significant opportunity for Manohar Lal & Sons to substantiate their claims and potentially reverse the contentious additions. This case highlights the complexities involved in tax assessments and the importance of proper representation and documentation in legal proceedings.
The tribunal allowed the appeal for statistical purposes, emphasizing the procedural fairness and the right to a thorough hearing. The case was set for a new hearing, with directions for comprehensive review and adjudication by the CIT(A).
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