INCOME TAX OFFICER, WARD-1(4), FARIDABAD, FARIDABAD vs. TANU GARG, FARIDABAD

None appeared on behalf of the assessee at the time of call. It appears from the record that previously the assessee never appeared whenever the matter was fixed for hearing. Hence, having no other alternative we have proceeded to deal with the matter exparte.

The matter relates to addition on account of cash deposit during demonetization to the tune of Rs.2,69,45,377/- under Section 68 of the Act. Rs.2,65,66,377/- was deposited in Canara Bank in Account No. 8802992897 and Rs.3,79,000/- was deposited in Account No. 84292201000260 in HDFC Bank in the name of Lavya Enterprises. The assessee was doing business in the name of Lavya Enterprises gross receipts from the sale of goods whereof was shown at Rs.97,86,975/-; such accounts was duly audited on 30.09.2018. The assessee before the Ld. Assessing Officer did not provide the details of source of such cash deposit and therefore, the same was found to be unexplained and addition thereof was made under Section 69A of the Act.

Before the First Appellate Authority the appellant submitted additional evidences being the bank statement of Current Account lying at Canara Bank being Account No. 8429201000260 and savings Account lying with HDFC Bank having Account No. 15661000011701 which were forwarded to the Assessing Officer on 10.08.2023 for verification and to furnish a remand report. As nothing was forthcoming the Ld. CIT(A) deleted the addition made in the hands of the assessee.

It is an admitted fact that the bank statements which were relied upon by the appellant before the Ld. CIT(A) were not verified and therefore, deletion of addition in our considered opinion is found to be P a g e | 3 Tanu Garg (ASSESSMENT YEAR:2017-18) not justifiable. Thus, having regard to this particular aspect of the matter, we for the ends of justice find it fit and proper to give a further opportunity to revenue to verify the banks statement relied upon by the assessee as mentioned hereinabove and therefore, this appeal is disposed of by remitting the issue to the file of the Ld. Assessing Officer to verify bank statement relied upon the assessee as above and to pass order accordingly. The Ld. Assessing Officer is further directed to grant a further opportunity of being heard to the assessee and to consider the evidences on record or any other evidence which the assessee may choose to file at the time of hearing of the matter. We also make it clear that in the event the assessee does not cooperate with the Ld.AO, the said authority would be at liberty to pass orders strictly in accordance with law.

The appeal preferred by the revenue is allowed for statistical purposes.