SMT. VAGEESHWARI SRINIVAS,,BEN vs. INCOME TAX OFFICER, WARD 4(3)(4), , BEN

Page 2 of 6 to 1844/Bang/2018 therefore do not require adjudication. She submitted that for all years under consideration assessment order has been passed under section 143 (3) read with section 148 of the act. Assessee before this Tribunal has challenged reopening of assessment to be bad in law. She submitted that the said issue has been alleged by assessee in Ground No. 2 for all years under consideration, and that, assessee do not wish to press this Ground .

Accordingly, Ground No.1 and 2 of appeals for years under consideration is dismissed as withdrawn. GROUND 3-7 5. Ld.AR submitted that, issue alleged by assessee in ground 3-7 relates to addition on account of unexplained cash sales. Ld.AR submitted that, except for the amount of addition made by Ld.AO, facts relating to the addition are identical and similar for all years under consideration. Ld.AR submitted that said addition was made by Ld.AO based on submission made by representative on behalf of assessee, that certain cash sales were not accounted for in the books of accounts.

Aggrieved by additions made by Ld.AO, assessee preferred appeal before Ld.CIT(A), who recorded a finding that, representative had willingly consented to the addition before Ld.AO.

Aggrieved by addition confirmed by Ld.CIT(A), assessee is in appeal before us. Ld.AR referred to affidavit dated 30/12/2019 filed by representative who appeared before Ld.AO during assessment proceedings for all years under Page 3 of 6 to 1844/Bang/2018 consideration. She submitted that, representative stated under oath of having consented to the addition to buy peace. Ld.AR further submitted that, assessing officer did not reject books of account at any stage, however came to a conclusion that, certain cash sales for each assessment years were unaccounted for. She further submitted that Ld.AO failed to provide details of alleged cash sales that were not accounted for in the books of account.

On the contrary, Ld.S.DR submitted that, assessee failed to reconcile the statement submitted and has not brought on record specific details/evidences to controvert the findings of Ld.AO. He thus supported the orders passed by authorities below.

We have perused submissions advanced by both sides in light of records placed before us.

We note that the representative who appeared before Ld.AO in his affidavit has given a statement under oath that, there has been no sales outside the books, and that, books were audited that were filed before authorities below. In assessment order passed, we note that, assessing officer has not provided bifurcations of cash sales added as unaccounted in books of account. Ld.AO has not provided details of impugned addition for years under consideration in the assessment order passed. Ld.AO has also not recorded details of alleged cash sales from sales register that was unaccounted by assessee.

We are therefore of opinion that the issue needs to be remanded to Ld.AO with a direction to provide details of Page 4 of 6 to 1844/Bang/2018 impugned additions for relevant assessment years were identified by Ld.AO to be unaccounted in the books of account. Assessee is directed explain the cash sales found in the sales register alleged to be unaccounted with supportive documents. Ld.AO is directed to pass a detailed order after considering the material is filed by assessee in support of its claim in accordance with law. Ld.AO shall verify the details/evidences filed by assessee in accordance with law. In the event assessee fails to file requisite details/evidences within reasonable time, adverse inference may be drawn by Ld.AO.

Needless to say that, proper opportunity of being heard, must be granted to assessee, in accordance with law. Accordingly, grounds 3-7 raised by assessee for all years under consideration stands allowed for statistical purposes. In the result appeal is filed by assessee for all years under consideration stands partly allowed. Order pronounced in the open court on 21st Oct, 2020. Sd/- Sd/- (A.K GARODIA) (BEENA PILLAI) Accountant Member Judicial Member Bangalore, Dated, the 21st Oct, 2020. /Vms/