NITIN SHYAMLAL KESWANI ,MUMBAI vs. INCOME TAX OFFICE WARD 2(2), MUMBAI

The assessee has raised grounds challenging the addition of Rs.11,37,500/- made by the Assessing Officer u/s 69A of the Act in respect of cash deposits made during the demonetization period and sustained by

Briefly stated, the assessee filed return of income declaring total income of Rs.3,56,340/-. During the course of scrutiny assessment, the Assessing Officer noticed cash deposits aggregating to Rs.11,37,500/- in various bank accounts during the demonetization period. The explanation of the assessee was not found satisfactory and the Assessing Officer treated the said amount as unexplained money u/s 69A of the Act and added the same to the total income.

Aggrieved, the assessee carried the matter in appeal before the Ld. CIT(A). The Ld. CIT(A) noted that several notices were issued during the appellate proceedings and that the assessee sought adjournments. The Ld. CIT(A) ultimately confirmed the addition of Rs.11,37,500/- made by the Assessing Officer.

Before us, the Ld. Authorised Representative submitted that the assessee was not afforded effective opportunity to place all supporting evidences on record and that the appeal deserves to be restored to the file of the Ld. CIT(A) for fresh adjudication on merits. The Ld. Departmental Representative relied upon the orders of the lower authorities.

We have heard the rival submissions and perused the material available on record. We find that though the Ld. CIT(A) has recorded that notices were issued on various dates, the appellate order ultimately proceeds to dismiss the appeal on the ground that no supporting evidences were furnished by the assessee. At the same time, we find that the impugned order does not contain a detailed adjudication of the issues arising from the grounds of appeal by dealing with the assessee's explanation and evidences, if any, in the manner contemplated under section 250(6) of the Act. The first appellate authority is under a statutory obligation to dispose 2

Considering the facts and circumstances of the case and in the interest of substantial justice, we deem it appropriate to set aside the impugned order and restore the matter to the file of the Ld. CIT(A) for de novo adjudication. The assessee shall be at liberty to file all evidences and submissions in support of its claim. The Ld. CIT(A) shall adjudicate the appeal afresh by passing a reasoned order in accordance with law after providing adequate opportunity of being heard to the assessee. The assessee is also directed to extend full cooperation and shall not seek unnecessary adjournments.

In the result, the appeal of the assessee is allowed for statistical purposes.