GRISHMA VIRAL DESAI,MUMBAI vs. ITO 22(1)(5), MUMBAI

Aforesaid appeal by assessee for Assessment Year (AY) 2013-14 arises out of the order of learned Commissioner of Income-Tax (Appeals)-34, Mumbai [CIT(A)] dated 27/12/2018 in the matter of assessment framed by Ld. AO u/s 143(3) on 23/03/2016. In this appeal, the assessee is aggrieved by partial confirmation of certain additions as made by Ld. AO while framing the assessment.

The assessee-in-person, drawing attention to the documents placed in the paper-book, pleaded for restoration of assessment to the file of Ld. AO since the documents & confirmations filed by the assessee in support of bank deposits were not considered in proper perspective by lower authorities. The Ld. DR, on the other hand, submitted that due verification have already been carried out by Ld. AO and the impugned order has considered the remand report of Ld. AO. Having heard rival submissions and after considering the orders of lower authorities, our adjudication to the subject matter of appeal would be as given in succeeding paragraphs.

The material facts are that during assessment proceedings, it transpired that there was huge cash deposit in assessee’s various bank accounts. The same did not match with the income of the assessee. In the absence of any satisfactory submissions forthcoming from the assessee, the deposits of Rs.331.86 Lacs were added to the income of the assessee. Another addition of Rs.7.90 Lacs was made due to mismatch in AIR information.

During appellate proceedings, the assessee filed additional evidences to bolster her claim. It was submitted that the transactions were done in the bank account in a fraudulent manner by one Shri Parag Karia, CEO of Tryakshaa Commodities Pvt. Ltd. The assessee also filed supporting evidences in support of deposits made in the bank accounts. These evidences were subjected to remand proceedings wherein the assessee’s claim was partially accepted by Ld. AO. The contents of the remand report have been reproduced in the impugned order. The Ld. CIT(A), after consideration of remand report as well as assessee’s submissions thereto, granted partial relief to the assessee. Aggrieved, the assessee is in further appeal before us.

After going through impugned order, we find that the deposits have been sourced out of cash deposits, loans taken by the assessee during the year, inter-bank transfers, insurance claim received, interest etc. as tabulated by the assessee during appellate proceedings. With respect to each head, the assessee had furnished various documentary evidences which have been placed on record. We find that these are elaborate documents which require thorough verification / enquiries at the end of Ld. AO. As per assessee’s submissions, these documents have not been properly appreciated by Ld. AO during the course of remand proceedings and there was violation of principle of natural justice. Keeping in view the fact that the assessee is an individual and has already filed elaborate documents in support of deposits made in her bank account which would have material bearing on the assessment, we are inclined to set-aside the impugned order and restore the matter of assessment back to the file of Ld. AO for framing de-novo assessment after considering all the aspects. Needless to add that adequate opportunity of hearing shall be granted to the assessee. The assessee, in turn, is directed to attend the assessment proceedings and substantiate her claim with requisite documentary evidences failing which Ld. AO shall be at liberty to re-frame the assessment on the basis of material on record.

Resultantly, the appeal stand allowed for statistical purposes. Order pronounced on 23rd November, 2021. (Mahavir Singh) (Manoj Kumar Aggarwal) उपाध्यक्ष / Vice President लेखा दस्य / Accountant Member मुिंबई Mumbai; सदनािंक Dated : 23/11/2021 Sr.PS, Dhananjay