Ajit Hiralal Saroj v/s. ITO Ward-3(1), Kalyan

Parties Involved

Facts Summary

The assessee, Mr. Ajit Hiralal Saroj, filed his income tax return declaring an income of Rs. 22,25,900/- for the Assessment Year 2015-16. The case was selected for limited scrutiny due to a mismatch in TDS claimed and sales turnover reported. The case was later converted to complete scrutiny, and the assessee was required to furnish various details. The Assessing Officer (AO) made additions of Rs. 87,18,490/- for sundry creditors and Rs. 1,03,85,028/- for disallowance of sub-contract charges under section 40(a)(ia) of the Income-tax Act, 1961. The assessee's appeal was dismissed ex parte. The assessee argued that the order was passed without giving proper opportunity. The Tribunal found that the assessee was not given adequate opportunity to furnish requisite documents and restored the case to the AO for passing the order afresh after providing adequate opportunity to the assessee.…

Legal Issues

• 1. Whether the Ld. CIT-Appeals did not consider the adjournment application of the Assessee and passed the Order without giving a reasonable opportunity to be heard?
• 2. Whether the Ld. CIT-Appeals did not consider the Additional Ground/s raised by the Assessee and passed the Order without giving a reasonable opportunity to be heard?
• 3. Whether the Ld. CIT-Appeals erred in facts and law in confirming the addition of Rs. 87,18,490/- made, in the income of the Assessee, as unexplained Sundry-Creditors?
• 4. Whether the Ld. CIT-Appeals erred in facts and law in confirming the addition of Rs.1,03,85,028/- made in the Income of the Assessee, u/s 40 (a)(ia) of the Act?

Judgment Outcome

Decided in favour of Assessee.

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