EZHILMARAN,TIRUPUR vs. THE INCOME TAX OFFICER, TIRUPUR/NEW DELHI

We find no representation on behalf of the assessee nor has any application been filed seeking adjournment. Assessee is called absent.

At the outset, it is noted that assessee is an individual and no return of income filed. The AO re-opened the assessment on information relating to cash deposits to an extent of ₹85,54,400/-. In order to verify the genuineness of the cash deposits, the AO issued notice under Section 143(2) and 142(1) of the Act. According to the AO, assessee filed part details/documents on 16.10.2023 and 24.11.2023 which are reproduced in page No.5 and 6 of the assessment order and held the same as not acceptable. Accordingly, he determined total income of the assessee under Section 69A of the Act to the extent of ₹85,54,400 and other credits to the extent of ₹37,02,523 as income from other sources vide order dated 13.04.2023 passed under Section 147 read with Section 144 and 144(B) of the Act. Being aggrieved by the order, assessee preferred an appeal before the ld. CIT(A). It is noted that assessee explained that he was in the business of selling damaged goods, repaired garments and shade-out fabrics. Ld. CIT(A) issued notice and assessee produced only profit and loss account and balance-sheet. Ld. CIT(A) held the same as self-serving, unverifiable financial statements carrying no evidentiary value and rejected the same. Further, it is noted from para

On an examination of the statement of facts with that of the impugned order, we note that the ld. CIT(A) clearly held the evidence furnished by the assessee is not sufficient to establish the nature of transactions/business carried out. Therefore, we are of the considered opinion that the assessee must get another opportunity before the ld. CIT(A) to prosecute his case on filing relevant details. Further, ld. CIT(A) also did not give any reasoning as to how the profit and loss account and balance-sheet are held to be of no evidentiary value and self-serving, unverifiable financial statements. Thus, we find no clear reasoning recorded by the ld. CIT(A) in this regard. Therefore, considering the facts and circumstances of the case and the reasoning given in the impugned order, we deem it appropriate to remand the matter to the file of the ld. CIT(A) for his fresh consideration. Ld. CIT(A) shall issue notice and the

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