V. MUTHUKRISHNAN,SALEM vs. ACIT, CIRCLE-1,, HOSUR

The only ground of appeal in this appeal of assessee is against confirming the addition u/s. 68 of the Act of Rs.6,39,015/- without considering the assessee’s submission .

The assessee is an individual and deriving income from house property and scrap business. The assessee has filed return of income showing total income of Rs. 17,33,070/- on 31.10.2015. The A.O has made addition of advance received of Rs. 1.26 Crore u/s. 68 of the Act and disallowed interest of Rs. 6,39,015/-. Aggrieved, the assessee has filed an appeal before Ld. CIT(A). The Ld. CIT(A) has confirmed the addition as the assessee has not filed relevant documents to substantiate his case.

The Ld. Authorized Representative (A.R) of the assessee has argued that the Ld AO has made the addition u/s 68 in respect of advance received for sale of land u/s 68 on the ground that assessee has failed to furnish identity of the persons, source and credit worthiness of persons and Ld. CIT(A) has passed order without considering the submission made on 26.06.2024. The Ld. AR has submitted that the advance received has been paid back and assess is :- 3 -:

On the other hand, the Ld. Departmental Representative, has stated that the assessee was provided sufficient opportunity, but has not made proper submission and therefore, cost may be levied.

We have heard the rival submissions, and perused the materials available on record. On perusal of the orders of A.O as well as Ld. CIT(A), we find that both the orders have been decided against assessee due to non-compliance by the assessee. The Ld. A.R has submitted that the Ld. CIT(A) has not decided the issue on merits, therefore the case may be remanded back to the A.O for adjudication on merits. We are of the opinion that keeping in view the principles of natural justice, the assessee be provided with another opportunity of hearing to substantiate his case before A.O. Accordingly, we set aside the orders passed by the A.O and the Ld. CIT(A) and remit the matter back to the file of the A.O subject to payment of costs of Rs.10,000/-. The same shall be paid by the assessee to Tamil Nadu State Legal Services Authority at Hon’ble High Court of Madras within a period of one month from the date of receipt of this order and produce the receipt before the Ld. CIT(A). We also direct the assessee to appear :- 4 -:

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