M.VENISLAS,KANYAKUMARI vs. ITO WARD-5, NAGERCOIL

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ITA 524/CHNY/2020Status: DisposedITAT Chennai30 September 2021AY 2014-153 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal found that additional evidence was filed and required examination. To ensure natural justice, the matter was set aside and remitted back to the CIT(A) for a fresh decision.

What were the facts?

The assessee's return was initially accepted, but later scrutiny led to significant additions. The CIT(A) confirmed these additions ex-parte. The assessee appealed to the ITAT with additional evidence.

What were the issues?

Whether additions for unexplained cash credit and expenditure were justified, and if the assessee should be given an opportunity to present additional evidence.

Which sections of the Income-tax Act were involved?

Section 68,Section 69C

AI-generated summary — verify with the full judgment below

Before: Shri Duvvuru RL Reddy & Shri G. Manjunatha

Hearing: 13.09.2021Pronounced: 30.09.2021

O R D E R

PER DUVVURU RL REDDY, JUDICIAL MEMBER:

1.

This appeal filed by the assessee is directed against the order of the ld. Commissioner of Income Tax (Appeals) 1, Madurai, dated 30.12.2019 relevant to the assessment year 2014-15. The effective grounds raised in the appeal of the assessee are (1) confirmation of addition towards unexplained cash credit made under section 68 of the Income Tax Act, 1961 and (2) confirmation of addition towards unexplained expenditure made under section 69C of the Act.

2.

The above appeal of the assessee is filed with a delay of 2 days, for which, the assessee has filed a petition in support of an affidavit for condonation of the delay, to which; the ld. DR has not raised any serious objection. Consequently, since the assessee was prevented by sufficient cause, the delay of 2 days in filing of the appeal stands condoned and the appeal is admitted for adjudication.

3.

Brief facts of the case are that the assessee has filed his return of income for the assessment year 2014-15 on 09.04.2015 admitting total income of ₹.1,58,940/-, which was accepted under section 143(1) of the Act. Subsequently, the return was selected for scrutiny and notices under section 143(2)/142(1) of the Act were issued. After considering the submissions of the assessee, the assessment was completed under section 143(3) of the Act by assessing taxable income of the assessee at ₹.1,20,93,470/- after making various additions. On appeal, the ld. CIT(A) concluded exparte appellate order by confirming the additions made in the assessment order.

4.

On being aggrieved, the assessee is in appeal before the Tribunal. By filing additional evidences in support of his claim, the ld. Counsel for the assessee has prayed for one more opportunity of being heard to the assessee. On the other hand, the ld. DR supported the orders of authorities below.

5.

We have heard both the sides, perused the materials available on record and gone through the orders of authorities below. Since there was no proper representation from assessee’s side despite various opportunities afforded, the ld. CIT(A) proceeded to decide the appeal after considering the materials available on record and confirmed the addition made under section 68 of the Act towards unexplained cash credit as well as addition made under section 69C of the Act towards unexplained expenditure. Before us, by filing additional evidences in support of his claim, the ld. Counsel for the assessee has prayed for one more opportunity of being heard to the assessee. Since the additional evidences filed by the assessee are required to be examined, we are of the opinion that in order to meet the ends of natural justice, one more opportunity may be given to the assessee for furnishing the additional evidences before the ld. CIT(A), as was filed before the Tribunal, for examination. Accordingly, we set aside the appellate order and remit the matter back to the file of the ld. CIT(A) to decide the issues afresh after considering additional evidences as may be filed by the assessee by affording an opportunity of being heard to the assessee.

6.

In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on the 30th September, 2021 in Chennai.

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