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Income Tax Appellate Tribunal, AHMEDABAD “B” BENCH
Before: SHRI MAHAVIR PRASAD & SHRI WASEEM AHMED
PER MAHAVIR PRASAD, JUDICIAL MEMBER
This appeal filed by the Assessee is directed against the order of the Ld. CIT(A), Gandhinagar, Ahmedabad dated 13.11.2017 pertaining to A.Y. 2013- 14 and following grounds have been taken:
2 . A.Y. 2013-14 1.1 The order passed u/s.250 on 13-11-2017 for A.Y.2013-14 by CIT(A)-GNR, Abad upholding the addition of Rs.39,50,000/-as unexplained investments towards purchase of land and RS. 15,02,000/- towards cash deposits in bank a/c made by AO is wholly illegal, unlawful and against the principles of natural justice. 1.2 The Ld. CIT(A) has grievously erred in law and or on facts in not appreciating that the AO had not allowed sufficient and specific opportunity for producing the necessary material with regard to the impugned additions so that there was gross violation of principles of natural justice and the appellant should have been allowed to produce additional evidence during the appellate proceedings. 2.1 The Ld.CIT(A) has grievously erred in law and on facts in confirming that the investment of Rs. 39,50,000/-towards purchase of land and RS. 15,02,000/- towards cash deposits in bank a/c were unexplained investment. 2.2 That in the facts and circumstances of the case as well as in law, the Ld.CIT(A) ought not to have upheld that the investment of Rs.39,50,000/- towards purchase of land and RS. 15,02,000/- towards cash deposits in bank a/c were unexplained investment 3.1 The Ld.CIT(A) has erred in upholding both the additions without allowing telescoping the same.
Facts of the case are that the appellant is an individual and engaged in the business of estate agent in the name and style of M/s. R J Investment. Assessee filed his return of income for assessment year 2013-14 on 05.11.2014 declaring total of Rs. 1,86,000/-. Thereafter case was selected for scrutiny under CASS.
During the course of assessment proceedings, it was noticed by the A.O. from ITS that the appellant had purchased land bearing serial no. 370/1 admeasuring 3 . A.Y. 2013-14 2616 sqm at Kadi for Rs. 38,35,100/- which paid by cheque from account with Axis Bank. Thereafter a notice was issued wherein pursuant to the said notice, assessee stated that money to the tune of Rs. 38,45,000/- were deposited in cash which were received from various parties. Thereafter appellant was asked to furnish source of cash deposits. Assessee stated that the said amount was received from several persons and some amount was received by way of inheritance upon both of his father and agriculture income. But ld. A.O. rejected said explanation that the claim of the assessee is not supported by any document evidence and made addition of Rs. 39,50,000/- towards purchase of land and Rs. 15,02,000/- towards cash deposits in bank account were unexplained investment.
Thereafter assessee preferred first statutory appeal before the ld. CIT(A) who confirmed the action of the ld. A.O.
We have gone through the relevant record and impugned order and heard both the parties. Assessee contention is that no proper opportunity was given to the assessee to submit certain document in support of his contention and lower authority hurriedly made and confirmed addition without allowing sufficient and specific opportunity for producing the necessary material with regard to impugned addition and same amount to violation of principle of natural justice.
In the interest of justice, we set aside this mater back to the file of the A.O. to decide a matter afresh after giving an opportunity of being heard to the assessee with the condition that assessee shall deposit Rs. 5,000/- as cost with the department within 30 days from the receipt of this order. Thereafter A.O.
4 . A.Y. 2013-14 will go ahead with the proceeding and will pass an order as per provisions of law.
In the result, appeal filed by the Assessee is allowed for statistical purpose.
Order pronounced in Open Court on 31 - 01- 2020