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Facts
The assessee, a Partnership Firm, declared Rs. 47,00,440/- for AY 2017-18 and was selected for scrutiny due to large cash deposits during demonetization. The AO made additions totaling Rs. 81,22,000/-, assessing income at Rs. 1,28,22,440/-.
Held
The Tribunal, considering the assessee's plea for another opportunity, restored all issues to the CIT(A) for a fresh decision after hearing submissions and considering evidence. The assessee was also requested to attend hearings promptly.
Key Issues
Whether the assessee deserves another opportunity before the lower authorities to present their case, particularly regarding additions made under Sections 68 and 40(a)(ia) of the Income Tax Act.
Sections Cited
250, 143(3), 144, 68, 40(a)(ia)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, A BENCH, PUNE
Before: Dr. MANISH BORAD & MS ASTHA CHANDRA
आदेश / ORDER
PER DR. MANISH BORAD, ACCOUNTANT MEMBER:
This appeal at the instance of the assessee is directed against the order of Ld. CIT Appeal (NFAC) u/s 250 of the Income-tax Act, 1961 dated 29.08.2024 which is arising out of Order passed u/s.143(3) r.w.s 144 of the Act dated 29.12.2019 framed by ITO assessment unit.
Assessee has raised following grounds of appeal:-
1. On the facts and the circumstances of the case and in law, lower authorities erred in passing ex-parte order and emed in deciding the issue only on the basis of material available with tham, this action is being violative of principal of natural justice. Your appellant prays for granting opportunity of hearing before lower authorities Without prejudice to the above grounds of appeal
, following grounds are also taken on merit,
2. On the facts and in the circumstances of the case and in law, lower authorities erred in making an addition of Rs.64,06,000/- u-s 68 of the Income Tax Act being cash deposited in bank account by disregarding appellant's submission as well as documentary evidences brought by assessee. The action is incorrect as the assessee has maintained books of accourits which are audited and therefore addition deserves to be deleted
3. On the facts and in the circumstances of the case and in law, lower authorities erred in making an addition of Rs. 6,40,600/- u/s 68- cash credit, without realizing the fact that said amount is a part of the account of appellant and section 68 is not applicable. Therefore, addition deserves to be deleted
4. On the facts and in the circumstances of the case and in law, lower authorities erred in making an addition of Rs.17,60,000 us 40(a)(ia) being 30 percent of Rs.57,20,000, salary payment by disregarding the facts of the case entire addition deserves to be deleted. Your appellant prays for deletion of entire addition. Your appellant craves for to add, alter amend, modify, delete any or all grounds of appeal before or during the course of hearing in the interest of natural justice.
At the outset Ld. counsel for the assessee submitted that assessee failed to furnish necessary details before Ld. CIT(A) in support of its grounds of appeal and therefore prayed for one more opportunity to appear before Ld. CIT(A).
Ld. DR did not oppose this request of Ld. counsel for the assessee.
We have heard rival contentions and perused the record placed before us. It is observed that the assessee is a Partnership Firm and declared Rs. 47,00,440/- in the return of income for A.Y. 2017-18 furnished on 17.10.2017. Selected for scrutiny through CASS for the reason of large value of cash deposits during demonetization period. The assessee filed details in the assessment proceedings but Ld. AO was not satisfied with some of the submissions and completed the assessment of making various additions of Rs. 81,22,000/- and assessed the income at Rs. 1,28,22,440/-
The additions made by the AO were challenged by the assessee in the appeal filed before Ld. CIT(A) but during the appellant proceedings assessee failed to furnish/provide details and evidences asked by Ld. CIT(A). The assessee also failed to furnish Form 26AS, Income Tax returns of the Payees regarding disallowance made u/s 40(a)((ia) of the Act.
Though Ld. CIT(A) granted fair opportunity but considering the prayer of the assessee we in the interest of justice give one more opportunity to the assessee and restore all the issues raised on merits to the file of Ld. CIT(A) for deciding in accordance with law after considering the submissions and documentary evidence to be filed by the assessee for which proper opportunity of hearing shall be granted. Assessee is also requested to promptly attend the hearing and refrain from taking unnecessary adjournment. Effective grounds of appeal raised by the assessee are allowed for statistical purposes.
In the result appeal of the assessee is allowed for statistical purposes.
Order pronounced on this 17th day of March, 2025.