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Facts
The AO made additions of Rs. 10,50,000/- for unexplained sale consideration and Rs. 10,55,000/- for unexplained loan received from relatives. The assessee challenged this order before the CIT(A) but failed to appear. The CIT(A) upheld the AO's order.
Held
The Tribunal, considering the interest of justice, remitted the matter back to the AO to verify the documents/evidences submitted by the assessee via affidavit, after affording an opportunity to the assessee.
Key Issues
Whether the CIT(A) was justified in upholding the assessment order without providing an opportunity to the assessee, and whether the assessee should be granted a further opportunity to present their case.
Sections Cited
69, 147
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, ‘C’ BENCH, CHENNAI
Before: SHRI MANU KUMAR GIRI & SHRI S.R.RAGHUNATHA
The captioned appeal filed by the assessee is directed against the order of the Ld. Ld. Commissioner of Income Tax (Appeals)(NFAC) Delhi [CIT(A)] dated 16.01.2025 for Assessment Year 2015-16.
Brief facts are that the AO in the assessment order disbelieved source of part sale consideration furnished by the assessee amounting to Rs.10,50,000/- as unexplained. Similarly, AO disbelieved loan received by the assessee from relatives amounting to Rs.10,55,000/-. Therefore, AO made addition of Rs.21,05,000/- u/s.69 of the Act.
Aggrieved, assessee challenged the assessment order passed u/s.147 of the Act before the CIT(A). The assessee failed to make any representation before the CIT(A), despite providing various opportunities by the CIT(A). Therefore, the CIT(A) upheld order of the AO.
Aggrieved by the order of CIT(A), assessee is in further appeal before us. Before us, the assessee himself appeared and filed an affidavit dated 26.03.2025 explaining particulars of cheques and transactions documents which are relating to additions.
Per contra, the Ld.DR relied upon orders of the lower authorities.
We have heard rival submissions and perused records. Before us, learned counsel for the assessee filed an affidavit dated 26.03.2025 as mentioned supra, and pleaded for one more opportunity to represent the matter before the AO. Therefore, in the interest of justice, we remit this matter back to the file of the AO to verify documents/evidences as narrated in the affidavit. The ld. AO is directed to proceed as per law after affording proper opportunity to the assessee. 7. In the result, appeal filed by the assessee is allowed for statistical purposes.
Order pronounced in the open court on 23rd April, 2025