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Income Tax Appellate Tribunal, Hyderabad ‘A ‘ Bench, Hyderabad
Before: Shri R.K. Panda, Vice- & Shri Laliet Kumar
आयकर अपील�य अ�धकरण, हैदराबाद पीठ IN THE INCOME TAX APPELLATE TRIBUNAL Hyderabad ‘A ‘ Bench, Hyderabad Before Shri R.K. Panda, Vice-President AND Shri Laliet Kumar, Judicial Member Assessment Year: 2018-19 Bharat Auto Tech (P) Ltd Vs. Income Tax Officer Khammam Ward-1 Khammam (Appellant) (Respondent) PAN:AAECB0325L Assessee by: Shri K.C. Devdas, CA Revenue by: Smt. T.H. Vijayalakshmi, CIT(DR) Date of hearing: 05/09/2023 Date of pronouncement: 06/09/2023 ORDER
Per R.K. Panda, Vice-President.
This appeal filed by the assessee is directed against the order dated 22.03.2023 of the learned CIT (A)-NFAC, Delhi relating to A.Y.2018-19.
Facts of the case, in brief, are that the assessee company is engaged in the business of sale of passenger autos. It filed its return of income on 14.10.2018 declaring total income of Rs.16,77,160/-. The return was processed u/s 143(1) of the Act and subsequently the case was selected for scrutiny under CASS for verification of transactions. Statutory notices u/s 143(2) and 142(1) were issued and served on the assessee. However, there was no compliance from the side of the assessee despite number Page 1 of 9
ITA 213 of 2023 Bharat Auto Tech P Ltd Khammam of opportunities granted for which the Assessing Officer proceeded to complete the assessment u/s 144 of the I.T. Act. The Assessing Officer issued notices u/s 133(6) to the Banks i.e. Axis Bank and HDFC Bank Ltd. However, no response was received from the above banks also. In view of the persistent non-compliance from the side of the assessee and in absence of any explanation to substantiate the source of various credits in the Bank Accounts, the Assessing Officer made addition of Rs.39,05,06.143/- to the total income of the assessee by recording the following:
2.1 He accordingly determined the total income of the assessee at Rs.39,21,83,300/-.
ITA 213 of 2023 Bharat Auto Tech P Ltd Khammam
Before the learned CIT (A) NFAC, the assessee made elaborate submissions based on which the learned CIT(A)NFAC called for a remand report from the Assessing Officer who vide report dated 13.3.2023 submitted a report which has been reproduced by the learned CIT (A) NFAC in the order and which reads as under:
ITA 213 of 2023 Bharat Auto Tech P Ltd Khammam ITA 213 of 2023 Bharat Auto Tech P Ltd Khammam ITA 213 of 2023 Bharat Auto Tech P Ltd Khammam
Based on the remand report of the Assessing Officer and the rejoinder of the assessee to such remand report, the learned CIT(A)NFAC restricted the addition to Rs.6,34,54,590/- only and deleted the balance addition by observing as under:
Aggrieved with such order of the learned CIT (A) the assessee is in appeal before the Tribunal by raising the following grounds:
ITA 213 of 2023 Bharat Auto Tech P Ltd Khammam
We have heard the rival arguments made by both the sides, perused the orders of the AO and the learned CIT (A) NFAC and the paper book filed on behalf of the assessee. We have also gone through the various decisions relied on by both sides. It is an admitted fact that during the course of assessement proceedings the assessee did not appear before the Assessing Officer despite repeated opportunities granted for which the Assessing Officer was constrained to pass the order u/s 144 r.w.s. 144B by determining the total income of the assessee at Rs.39,21,83,300/- as against the returned income of Rs.15,77,160/- wherein he made addition of Rs.39,05,06,143/- being the credits in the Bank Account. We find the learned CIT (A) NFAC on the basis of submissions filed by the assessee obtained a remand report from the Assessing Officer and restricted the addition to Rs.6,34,54,590/- only the reasons of which have already been reproduced in the preceding paragraph. While doing so, he noted that the Assessing Officer in his report has accepted the total deposits both cash and credit transactions at only Rs.26,84,68,274/- and not Rs.39,05,06,143/- due to some mistakes due to repeated entries. He further noted that the total deposit of Rs.26,84,68,274/- consists of cash deposits and Rs.6,34,54,590/- and bank deposit of Rs.20,50,13,684/-. The Revenue is not in appeal before us as of now. So far as the cash deposit of Rs.6,34,54,590/- sustained by the learned CIT (A) NFAC is concerned, it is the submission of the learned Counsel for the assessee that the said cash deposit is out of the sale proceeds and given an opportunity the assessee is in a position to substantiate with evidence to the satisfaction of the Assessing Officer regarding the source of the same. It is also his submission that although the assessee during the remand proceedings has filed the cash book for the period 1.4.2017 to Page 7 of 9
ITA 213 of 2023 Bharat Auto Tech P Ltd Khammam 31.3.2018 along with the sales ledger as part of additional evidence petition, however, the same was not considered properly. We find some force in the above argument of the learned Counsel for the assessee. A perusal of the profit & loss account, copy of which is placed at Page 559 of the paper book show the total turnover at Rs.17,62,60,218.69 and other income at Rs.2,78,534/-. We find the Assessing Officer in his remand report has not at all commented about the submission of the assessee that the cash deposits in the bank account is out of the sale proceeds in cash. Further, the order of the learned CIT (A) NFAC is also very cryptic on the issue of cash deposit. Considering the totality of the facts of the case and in the interest of justice, we deem it proper to restore the issue to the file of the learned CIT (A) NFAC with a direction to grant an opportunity to the assessee to substantiate with evidence to his satisfaction regarding the source of cash deposit of Rs.6,34,54,590/-. Needless to say, the learned CIT (A) NFAC shall give due opportunity of being heard to the assessee and decide the issue as per fact and law. We hold and direct accordingly. The grounds raised by the assessee are accordingly allowed for statistical purposes.