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Judgment
PER SUDHIR KUMAR, JUDICIAL MEMBER:
This appeal by the assessee is directed against the order of the National Faceless Appeal Centre, Delhi [hereinafter referred to as “NFAC”] vide order dated 05.08.2025 pertaining to A.Y. 2011-12 arising out the assessment order dated 31.12.2018 passed u/s.147/148 of the Income-tax Act, 1961, (in short ‘the Act’) by the ITO, 72(4), New Delhi.
Ld. AR for the assessee has only pressed the following grounds of appeal:-
i)Under the facts and circumstance of the given case, the AO has grossly erred in holding that the reply submitted by the assessee to show cause notice dated 18.12.2018 was not tenable on the grounds that no documentary evidence in respect of cash / credit entries amounting to Rs. 2,05,71,500/- were submitted, which is grossly injudicious, against the facts of the case and bad in law.
ii) Furthermore the Ld. CIT(A) has grossly erred by noting that in the assessment order dated 31.12.2018 the AO found assessee’s explanation untenable due to insufficient documentary evidence, without considering the fact that the AO found the reply to the show cause notice dated 18.12.2018 untenable on the grounds that no documentary evidence was submitted at all, which in itself is not true because the evidence was duly submitted alongwith the reply.
We have heard the rival contentions and perused the records. Before us, Ld. Counsel for the assessee submitted that Ld. CIT(A) erred in ignoring the fact that AO has grossly erred in holding that the reply submitted by the assessee to show cause notice dated 18.12.2018 was not tenable on the grounds that no documentary evidence in respect of cash / credit entries amounting to Rs. 2,05,71,500/- were submitted, which is grossly injudicious, against the facts of the case and bad in law. It was also submitted by the Ld. AR that Ld. CIT(A) has also erred by noting that in the assessment order dated 31.12.2018 the AO found assessee’s explanation untenable due to insufficient documentary evidence, without considering the fact that the AO found the reply to the show cause notice dated 18.12.2018 untenable on the grounds that no documentary evidence was submitted at all, which in itself is not true because the evidence was duly submitted alongwith the reply. Ld. DR relied upon the order of the CIT(A). In view of the factual matrix, we are of the considered view that the aforesaid aspect/grievance of the ld. Counsel for the assessee needs to be verified/examined at the level of the AO, accordingly, we deem it fit and proper to remit back the issues to the file of the AO for fresh adjudication, after giving adequate opportunity of being heard to the assessee, in accordance with law. Assessee is also directed to substantiate its case before the AO during the proceedings by way of providing all the evidences/ documents to the AO to enable him to pass a speaking order, in accordance with law. We hold and direct accordingly.
In the result the appeal of the assessee is allowed for statistical purposes.