INCOME TAX OFFICER, LUDHIANA vs. MOHINDER SINGH, LUDHINANA

In the present appeal Revenue has raised the following grounds:

That, reliance is placed on the judgement of Hon'ble High Court of Gujarat at Ahmedabad in the case of Principal Commissioner of Income Tax- 3, Vs. Ashokji Chanduji Thakor dated 27.06.2018 wherein the order passed by the Hon'ble ITAT was quashed & order of AO/CIT(A) were restored. Further appeal of the assessee (SLP No. 15019/2021) was also dismissed by the Hon'ble Supreme Court vide order dated 26.07.2021. 6. That the appellant craves leave to add or amend any ground of appeal before it is finally disposed off.

Briefly stated, the facts of the case are that the assessment in the case of the assessee was completed under section 147 r.w.s. 144 of the Act making an addition of Rs. 2,29,00,000/- on account of alleged unexplained credits appearing in the bank account of the assessee maintained with HDFC Bank. The Assessing Officer treated the said credits as unexplained money under section 69A of the Act on the ground that the assessee had failed to explain the nature and source of the deposits during the assessment proceedings.

Aggrieved against the said assessment order, the assessee carried the matter in appeal before the Ld. CIT(A). During the appellate proceedings, the assessee submitted that the deposits represented business receipts and also filed copy of HDFC Bank statement, VAT return and balance sheet in support of the claim. The Ld. CIT(A), after considering the submissions and material placed on record, observed that the assessment had been completed ex-parte and the additional evidences furnished by the assessee were relevant for adjudication of the issue involved. The Ld. CIT(A) further observed that the assessee deserved one more reasonable opportunity before the Assessing Officer to substantiate his claim and accordingly, in exercise of powers conferred under section 251(1)(a) of the Act, set aside the assessment order and restored the matter back to the file of the Assessing

Against the order of the Ld. CIT(A) the Revenue preferred an appeal before the Tribunal.

During the course of hearing before us, the Ld. DR relied upon the assessment order and submitted that the Ld. CIT(A) was not justified in setting aside the matter to the file of the Assessing Officer. It was contended that sufficient opportunities had already been granted during the assessment proceedings and the assessee failed to avail the same. Therefore, according to the Revenue, the order of the Ld. CIT(A) deserved to be reversed.

Per contra, the learned AR for the assessee supported the order passed by the Ld. CIT(A) and submitted that the assessment was framed ex-parte without proper verification of the claim of the assessee. It was further submitted that the assessee had produced certain documentary evidences before the Ld. CIT(A) which required examination at the end of the Assessing Officer and therefore the Ld. CIT(A) had rightly restored the matter back to the file of the Assessing Officer for fresh adjudication.

We have heard the rival submissions and perused the material available on record. We find that the Ld. CIT(A), after considering the facts and circumstances of the case, has restored the matter back to the file of the Assessing Officer for fresh adjudication primarily on the ground that the assessment was completed ex-parte and certain documentary evidences produced by the assessee required proper verification and examination by the Assessing Officer. We further note that the Ld. CIT(A) has not deleted the addition on merits but has merely restored the matter back to the file of the Assessing Officer for deciding the issue afresh after granting due opportunity to the assessee.

1 In our considered opinion, the Revenue has failed to point out any infirmity or perversity in the order passed by the Ld. CIT(A). The order of the Ld. CIT(A) is only in the nature of restoring the matter to the file of the Assessing

2 Accordingly, finding no merit in the appeal filed by the Revenue, the same is dismissed. The matter shall remain restored to the file of the Assessing Officer in terms of the directions issued by the Ld. CIT(A). Needless to say, the Assessing Officer shall examine all factual and legal issues raised by the assessee and decide the matter afresh strictly in accordance with law after affording adequate opportunity of being heard to the assessee.

In the result, the appeal of the Revenue stands dismissed.

""थ"/ The Respondent 3. आयकर आयु"/ CIT 4. आयकर आयु" (अपील)/ The CIT(A) 5. िवभागीय "ितिनिध, आयकर अपीलीय आिधकरण, च"ीगढ़/ DR, ITAT, CHANDIGARH 6. गाड" फाईल/ Guard File