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Facts
The revenue preferred an appeal against the CIT(A)'s order allowing the assessee's appeal. The original assessment was ex-parte due to the assessee's non-response. A large cash deposit was made in the assessee's bank account, which was added as income. The CIT(A) deleted the addition based on evidence provided by the assessee.
Held
The Tribunal found that the CIT(A) should have waited for a remand report from the AO, especially since the assessment was ex-parte and the assessee had not furnished details. The matter was remitted to the AO for fresh consideration.
Key Issues
Whether the CIT(A) was correct in deciding the appeal without appreciating the assessee's non-responsiveness and without awaiting a remand report from the AO.
Sections Cited
133(6), 144, 69A
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Income Tax Appellate Tribunal, “G” BENCH, MUMBAI
Before: SHRI NARENDRA KUMAR BILLAIYA, HON’BLE & SHRI ANIKESH BANERJEE, HON’BLE
O R D E R
PER NARENDRA KUMAR BILLAIYA, AM:
1. This appeal by the revenue is preferred against the order dated 10/06/2024 by NFAC, Delhi [hereinafter ‘the CIT(A)’] pertaining to AY 2017-18.
2. The grievance of the revenue reads as under:- “1. Whether on the facts and circumstances of the case and in law, the Ld CIT(A) was correct in allowing the appeal of the assessee without appreciating the fact that the assessee remained non responsive during the assessment proceedings as well as during remand proceedings also and did not submit any response, submission, clarification with respect to the additional evidence/details which were produced before the Ld. CIT(A) and due to non-responsive approach of the assessee the additional evidence/details remained unverified as well as correctness and genuineness of the transaction also remained unexplained. 2. The appellant craves leave to amend or alter or add a new ground which may be necessary.
3. None appeared on behalf of the assessee in spite of notices. Therefore, we decide to proceed ex-parte.
The ld. D/R was heard at length. Case records carefully perused. 5. Briefly stated the facts of the case are that the assessee filed its return of income and 06/11/2017 declaring total income of ₹ 3,01,270/-. The return was selected for scrutiny assessment under CASS on the issue of large value cash deposit in the bank account of the assessee amounting to Rs. 17,44,91,140/-. The cash was found deposited in the Bombay Mercantile Cooperative Bank Ltd., Null Bazaar, Mumbai. The assessee was asked to furnish following details:- 1. Brief note on the nature of business/activities carried on by you and method of accounting employed by you for the assessment year under consideration.
Please furnish audited Profit & Loss account, Balance sheet/Capital Account along with schedules, Tax Audit Reports & annexure & computation of income for the F.Y. 2016-17, relevant to A.Y. 2017-18. 1. Furnish details of return filed for A.Y 2016-17, 2015-16 & 2014-15 e.g. Date of Filing of Return, Return Income declared, Mode of filing of return i.e. Manual or E-filing, Ward /Charge Number etc.
2. Please furnish details of all the bank accounts maintained by you individually/jointly along-with Bank Statements for the F.Y.2015-16, 2016-17 and 2017-18
Please produce Cash Book & stock register, if any, for the previous year relevant to the A.Y. 2016-17 and AY 2017-18.
4. Furnish the narration of each entry in your bank account for the period 01.04.2016 to 31.03.2017. 5. Furnish the details of cash deposits during the demonitization period
Furnish the source of cash deposits made during the demonitization period alongwith justification and corroborative evidence. details of cash deposits in your account.
Please submit the following details:
Total cash deposit in Bank in the Bank Name Details of denomination i.e. Rs 500 Amount (Rs.) following periods & A/c No. and Rs 1000 F.Y 2015-16 01-04-2015 to 08-11-2015 09-11-2015 to 31-12-2015 F.Y. 2016-17 01-04-2016 to 08-11.2016 09-11-2016 to 31-12.2016
Please submit the following details in the given format: (If applicable)
Total cash sales in the following periods Amount Details of denomination (Rs.) i.e. Rs 500 and Rs 1000 F.Y 2015-16 01-04-2015 to 08-11-2015 09-11-2015 to 31-12-2015 F.Y 2016-17 01-04-2016 to 08-11-2016
1. 1. 31-12-2016
Please furnish copy of ‘Deposit Slip’ along with denomination of notes, in respect of cash deposited during denomination period along with reasons for large cash deposits during the demonetization period.
Please furnish Copy of ‘Withdrawal Slip’ if withdrawal is done in cash otherwise the details of withdrawal by transfer/cheque/NEFT/RTGS etc, for period 09/11/2016 to 31/03/2017.
Please furnish the details of sundry debtors as on 01.04.2016 and 08.11.2016 in the following format( If applicable):
Outstanding Amount to Sr. Name of the fPAN of the Outstanding Amount to be be Recovered as on No. Debtor Debtor Recovered as on 01.04.2016 08.11.2016
Please furnish the following details in the format given below;(If applicable): Cash Loans Taken during the F.Y 2016-17 relevant to A.Y 2017-18:
Name & PAN of Persons Sr. Date of Loans Amount of Cash from whom Loans Received No. received in Cash Loan(Rs.) in Cash Loan Repayments received in Cash during the F.Y 2016-17 relevant to A.Y 2017-18:
Name & PAN of Persons from Amount of Loan Sr. Date of Loan repayments whom loan repayments received in repayment received in No. received in Cash Cash during the year Cash (Rs.)
(c) Gifts received in Cash during the F.Y 2016-17 relevant to A.Y 2017-18:
Sr. Name & PAN of Persons from whom Date of Amount of Gift No. Gifts received in cash during the year Cash Gifts received in Cash Furnish copy of VAT return for the relevant F.Y. 2016-17, and if revised, reasons thereof and also provide copy of revised VAT return. Please furnish details of moveable/immovable assets held by you individually /jointly.”