SHRI KIRITKUMAR HIMATLAL DHOLAKIA,AHMEDABAD vs. THE INCOME TAX OFFICER, WARD-14(1), AHMEDABAD

This appeal, filed by the assessee, challenges correctness of the order dated 19th 1. November 2015, passed by the leaned CIT(A), in the matter of assessment under section 143(3) of the Income Tax Act, 1961 (‘the Act’ hereinafter), for the assessment year 2010-11.

“1. The learned CIT(A) has erred in law and on facts in confirming the addition of Rs.25,56,400/- and of Rs.80,000/- under section 69 of the Act.

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2013. He submits that when again these submissions were forwarded by the learned CIT(A) to the Assessing Officer, and a remand report was called on the same, the Assessing Officer merely stated that all the material was duly considered at the time of passing the impugned Assessment Order. The Assessing Officer, however, did not deal with the matter, on merits, in the remand report. A copy of these submissions was placed before us at pages 16 to 54 of the paper book, and it was pointed out that the learned CIT(A) was argued to treat the same at least as an additional evidence under rule 46A and decide the matter in the light of the submissions so made. Learned CIT(A), however, has dealt with the matter in a very superficial manner without addressing himself to merits of the case. Learned counsel submits that in the light of the above position, which is clearly discernible from a perusal of the orders of the authorities below, the matter should be sent back to the file of the Assessing Officer for adjudication de novo, after giving yet another opportunity of hearing to the assessee and duly taking into account all the submissions of the assessee, by way of a speaking order.

“4.8 The facts of the case and submission of the appellant as well as the remand report have been considered. The explanation of the assessee regarding cash deposits in the banks were duly examined by the Assessing Officer during the course of assessment proceedings. The details submitted by the assessee vide letter dated 28.03.2013 were also considered by the Assessing Officer while finalising the assessment order. The Assessing Officer has dealt with all the explanation furnished by the appellant in his assessment order and found several discrepancies and anomalies in the explanation furnished by the appellant. During the appellate proceedings nothing new explanation was furnished by the appellant. The view taken by the Assessing Officer after the explanation filed by the appellant is justified and the addition made by the AO is confirmed. Thus the grounds of appeal are dismissed.” “5.2 I have considered the facts of the case. The Assessing Officer has made addition of Rs.80,000/- by treating cash deposits in HDFC Bank as unexplained. During the course of assessment proceedings the AO has called for the nature and source of income. However, the assessee failed to explain the nature and source of these deposits. In the absence of any explanation, the AO has added an amount of Rs.80,000/- as unexplained,” 6. It is also clearly evident that the Assessing Officer had not dealt with the specific detailed submissions filed by the assessee on 28.03.2013 and the remand report filed by him also did

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not adequately deal with the issues raised in these submissions. The right course, in my considered view, for the learned CIT(A) was to deal with the matter by way of a speaking order, after, if necessary, giving the Assessing Officer yet another opportunity to deal with the contentions of the assessee on merits.

Sd/- Pramod Kumar (Accountant Member) Dated: Ahmedabad, the 14th day of February, 2018.

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Copies to: (1) The appellant (2) The respondent (3) CIT (4) CIT(A) (5) DR (6) Guard File

By order

Assistant Registrar Income Tax Appellate Tribunal Ahmedabad benches, Ahmedabad