SRI VR JEWELLERY,COIMBATORE vs. ITO, NON CORP. CIRCLE-1, COIMBATORE

Aforesaid appeal by assessee for Assessment Year (AY) 2017-18 arises out of order of learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] dated 27-12-2022 in the matter of an assessment framed by Ld. Assessing Officer [AO] u/s.143(3) of the Act on 27-12-2019. In the assessment order, the assessee has been saddled with addition of Rs.112.66 Lacs on account of unexplained cash deposited during demonetization period. The Ld. CIT(A) merely endorsed the view of Ld. AO. Aggrieved, the assessee is in further appeal before us with various grounds assailing impugned additions.

The Ld. AR submitted that cash sales have taken place before demonetization period and the transactions are duly supported by stock register, VAT returns and cash book maintained by the assessee. The Ld. AR submitted that the detailed submissions made during appellate proceedings have not been considered and Ld. CIT(A) has merely endorsed the view of Ld. AO without rendering any independent findings. The Ld. Sr. DR opposed any interference in the impugned order. 3. Upon perusal of impugned order, we concur with the submissions made by Ld. AR that no independent findings have been rendered and the detailed submissions made by the assessee have not been considered. Therefore, we set aside the impugned order to the extent of additions as sustained in the impugned order and restore the appeal back to the file of Ld. CIT(A) to reconsider assessee’s submissions and render independent finding thereto. Needless to add that reasonable opportunity of hearing shall be granted to the assessee. The assessee, in turn, is directed to substantiate its stand. 4. The appeal stand allowed for statistical purposes. Order pronounced on 25th April, 2023 Sd/- Sd/- (MAHAVIR SINGH) (MANOJ KUMAR AGGARWAL) उपा12 /VICE PRESIDENT लेखासद9 /ACCOUNTANT MEMBER चे+ई/ Chennai; िदनांक/ Dated : 25.04.2023 DS DS DS DS आदेशकीXितिलिपअ6ेिषत/Copy of the Order forwarded to : 1. अपीलाथ�/Appellant ��थ�/Respondent आयकरआयु4/CIT 2. 3. 4. िवभागीय�ितिनिध/DR 5. गाड9फाईल/GF