SHRI SURESH NANWANI S/O TULSIDAS NANWANI,INDORE vs. THE ITO 3(3), INDORE

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ITA 1514/IND/2016Status: DisposedITAT Indore29 June 2018AY 2009-105 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal found that the assessee did not appear before the Assessing Officer (AO). In the interest of natural justice, the matter was set aside to the AO to provide an opportunity of being heard to the assessee and decide afresh.

What were the facts?

The assessee's appeal was against the CIT(A)'s order confirming reassessment proceedings and an addition of Rs. 6,08,250/- on account of cash deposits. The assessee contended that the reassessment was arbitrary and that the addition was made without appreciating facts, including peak credit.

What were the issues?

Whether reassessment proceedings were arbitrary and unjust, and whether the addition on account of cash deposits was justified without considering peak credit.

Which sections of the Income-tax Act were involved?

Section 44AF

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, INDORE BENCH, INDORE

Before: SHRI KUL BHARAT & SHRI MANISH BORAD

Hearing: 29.06.2018

PER KUL BHARAT, J.M. : Appeal filed by the assessee is directed against the order of Ld. CIT(A)-I, Indore, dated 10.09.2016, pertaining

to assessment year 2009-10. 2. The assessee has raised the following grounds of appeal :-

1.

The Ld. CIT(A) failed to appreciate the facts and circumstances of the case, details and documents

on records and judicial pronouncements placed

on record and erred in confirming the reassessment proceedings, which is arbitrary,

unjust and bad in law.

2.1.

That under the facts and circumstances of the case, details & documents on record, the ld. AO

erred in confirming the addition of Rs. 6,08,250/- Suresh Nanwani,Indore on account of cash deposits in bank account

which is arbitrary, unjust & bad in law.

2.

2 Without prejudice to the above, addition

maintained at Rs. 6,08,250/- is arbitrary since

the same is without appreciating the following :-

- That the appellant is not held as benamidar of Mr. Sumer Singh Solanki.

- Applicant was made second holder of account since 30th Jan.,2007. - During the relevant period u/s 44AF net

profit @ 5% of turnover is applicable

while profit percentage of 15% was applied on total turnover by the Ld.

CIT(A).

2.

3 Without prejudice to the above, the Ld. CIT(A)

erred in not considering the ‘peak credit’ in the aforesaid bank account of Rs. 1,85,328/- Suresh Nanwani,Indore in not deleting the additions in excess of the same, which is arbitrary & unjust.

3.

The Ld. Counsel for the assessee contended that the Ld. CIT(A) has failed to appreciate the facts and circumstances of the case, details and documents on records and judicial pronouncements placed on record and erred in confirming the reassessment proceedings, which is arbitrary, unjust and bad in law. The AO failed to appreciate the details & documents on record and the ld.

AO erred in confirming the addition of Rs. 6,08,250/-.

4.

The Ld. Departmental Representative relied on the orders of the lower authorities.

We have considered the facts, rival submissions and 5. perused the material available on record. We find that the assessee did not appear before the AO and the AO passed

the order. In the interest of natural justice, we deem it proper to set aside the matter back to the file of the AO Suresh Nanwani,Indore with the direction that he shall afford an opportunity of being heard to the assessee and then decide the matter afresh in accordance with law. In the result, the appeal of the assessee is allowed for statistical purposes. The order pronounced in the open court on 29.06.2018. (मनीष बोरड) (कुल भारत) लेखा सद"य "या"यक सद"य Indore; "दनांक Dated : 29/06/2018 CPU*/SPS Copy to: Assessee/AO/Pr. CIT/ CIT (A)/ITAT (DR)/Guard file. By order Private Secretary/DDO, Indore

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