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Income Tax Appellate Tribunal, DELHI BENCH: ‘I(2
Before: MS SUCHITRA KAMBLE, & SHRI PRASHANT MAHARISHI
ORDER PER SUCHITRA KAMBLE, JM This appeal is filed by the assessee against the order dated 18/12/2018 passed by CIT(A)-6, Delhi for Assessment Year 2015-16.
The grounds of appeal are as under:-
1. That the A.O has made addition of 15,12,530/- on account of unexplained cash Deposit in HDFC Bank Limited u/s 143(3)/147 of the Income Tax Act, 1961("the Act").
2. That the appellant has made the Appeal to CIT(A) u/s 246 A of the Act, against the order of AO dated 11.12.2017. CIT (A) in Order u/s 250(6) of the Income Tax Act,1961 has partially allowed the Appeal on the basis and grounds given in such appeal. CIT(A) added to the income of the Appellant totaling Rs 6,60,000 3. Not satisfied with the partial relief granted by the CIT(A) , the assessee appeals before the Tribunal 4. Contentions of the Appellant Assessee : It was stated that the reasons recorded by the AO was that Mere cash deposits was treated to be equivalent to income escaping assessment. The Commissioner of Appeal treated the Cash deposits of Rs. 3,10,000/- , 2,00,000/- and 1,50,000/- as huge cash deposits and stated that these cash deposits do not pertain to the regular business transactions. The Appellant Contends that these cash deposits cannot be added to the income merely on the Ground that these are huge cash deposits.
The assessee filed his income tax return on 28/12/2010 declaring income of Rs. 1,55,330/- for the Assessment Year 2010-11. The Assessing Officer observed that the assessee made cash deposit of Rs. 13,57,200/- in his saving bank account maintained with HDFC Bank Ltd during Assessment Year 2010-11. In response to notice u/s 148, the assessee submitted that the case is covered u/s 44AE of the Act and therefore, does not require books of accounts. The reassessment proceedings u/s 147 of the Act were initiated after recording reasons by the Assessing Officer. Notice u/s 148 of the Act was issued on 28/3/2017. The reassessment u/s 143(3)/147 was completed on 11/12/2017 at an assessed income of Rs.15,12,530/-.
Being aggrieved by the assessment order, the assessee filed appeal before the CIT(A). The CIT(A) partly allowed the appeal of the assessee.
At the time of hearing, none appeared for the assessee and there is no application for adjournment. The notice has been duly served to the assessee. Therefore, we are proceeding on the basis of the submissions made by the assessee before the Assessing Officer as well as before the CIT(A).
The Ld. DR relied upon the assessment order as well as order of the CIT(A).
We have heard Ld. DR and perused the material available on record. From the perusal of the assessment order, it can be seen that the assessee has not produced evidence in respect of addition of Rs. 13,57,000/- which was treated as the amount deposited in his bank account out of undisclosed sources. From the perusal of the order of the CIT(A), it can be seen that the assessee has given the explanation which was not at all considered by the CIT(A). Besides that the assessee also produced certain evidences before the CIT(A) which was not considered by the CIT(A). Therefore, it will be appropriate to remand back this matter to the file of the CIT(A) for proper adjudication on merit of the case after verifying all the documents produces before the CIT(A). Needless to say, the assessee be given opportunity of hearing by following principles of natural justice.
In result, the appeal of the assessee is partly allowed for statistical purpose. Order pronounced in the Open Court on 02nd March, 2020.