SAFFRON BPM,AHMEDABAD vs. ITO WARD 3(3)(5) AHMEDABAD, AHMEDABAD

Brief facts of the case are that the appellant is a partnership firm engaged in BPO services and trading of diamond. It did not file its return of income for AY 2012-13. Based on the information that assessee had made huge transactions and there was credit to the tune of Rs.

During the course of first appellate proceedings also, assessee did not respond to several notices issued by CIT(A). Hence, CIT(A) confirmed the impugned addition and observed that even if no books of account were maintained, addition was sustainable.

Aggrieved with the order of the CIT(A), the assessee is in appeal before ITAT. Grounds of appeal are as follows:- “1.1 The order passed by U/s.250 passed on 30.03.2026 for A.Y. 2012-13 by NFAC, [CIT(A)], Delhi (for short CIT(A)" upholding the addition of Rs. 2,47,70,783/- made by A.O. towards credits in DCB Bank account as unexplained credit u/s 68 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 there could not be compliance to the notices claimed to be issued because, there was a sufficient cause for failure to comply with the notices claimed to be issued by both the lower authorities. 2.1 The ld. CIT(A) has failed to appreciate that the re-opening of assessment u/s 147 was illegal and unlawful because the condition precedent for re- opening were not fulfilled. 3.1 The ld.CIT(A) has grievously erred in law and or on facts in upholding addition of Rs. 2,47,70,783/- made by A.O. towards credits in DCB Bank account as unexplained credit u/s 68. 3.2 That the in the facts and circumstances of the ld. CIT(A), ought not to have upheld addition of Rs. 2,47,70,783/- made by A.O. towards credits in DCB Bank account as unexplained credit u/s 68. 2

When the case was taken up for hearing, assessee sought another opportunity to make proper representation before the CIT(A). Since the addition has been made on the basis of credit entries in bank account u/s. 68 of the Act in the absence of enquiries of various transactions appearing in the bank passbook, we deem it appropriate and in the interest of justice, it is necessary to set aside the order of the CIT(A). The assessee should explain the nature and sources of credits in his bank account before the ld. CIT(A) during the appellate proceedings without fail.

In the result, the appeal is allowed for statistical purpose.