EMKAY INDUSTRIES LTD. Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THIS appeal has been preferred by the assessee under s. 260A of the IT Act, 1961 ('the Act') against the orders of substantial questions of law :

(2.) THE AO during the course of assessment made certain additions under s. 68 of the Act holding that the assessee had failed to establish the identity, genuineness and creditworthiness of the transactions. In the course of appellate proceedings, the assessee furnished additional evidence in the form of confirmation letters which were forwarded to the AO. The AO sought time for verification but failed to send his report. The CIT(A) allowed the appeal of the assessee by accepting additional evidence.

(3.) ON appeal by the Revenue to the Tribunal, it was held that CIT(A) should have awaited the opinion of the AO or should have conducted inquiry himself as provided under s. 250(4) of the Act. The Tribunal remitted the matter for fresh decision. The conclusion of the Tribunal is as under :