VINOD KUMAR,MEERUT vs. ITO, WARD- 2(4), MEERUT

Here in this case, the addition has been made by the AO for sums aggregating to Rs. 19,00,000/- on account of deposit of cash in the bank account. The assessment has been passed as ex parte, because no notices were complied with by the assessee. The reason given by the Ld. Counsel before us was that none of the notices were received by the assessee. Ld. CIT (A) has confirmed the addition of Rs. 19,00,000/- on the ground that no details were offered or given by the assessee before the AO despite several opportunities and in the appellate proceedings only affidavits have been filed to prove the source of the cash deposits.

Before us, Ld. Counsel has submitted that assessee has filed all the documents before the CIT (A) in the form of affidavits of the persons giving the advance to the assessee. Further, the assessee has presented all the three persons before the AO who have come with the pass book required by the AO and they have clearly stated that the amount was on account of purchase of agricultural land received from the assessee as the deal could not be materialized. AO thereafter, called them once again but they could not come. Thus, he submitted that matter can be restored back to the AO so that the matter can be properly examined. On the other hand, Ld. DR relied upon the order of the Ld. CIT(A).

From the perusal of the impugned order, we find that in response to the remand report the assessee has stated as under:- “1) That the assessee has presented all the three persons before the A.O. they have come with their passbook as required by the A.O. 2) That all the three persons has filed their affidavit in this regard, they have given the .amount for purchase of agriculture land and received the same from Shri Vinod Kumar as the deal could not be materilised. The copy of the affidavit filed before the A.O. are also enclosed herewith. 3) That again the A.O. has called them as they could not come due to high fever, they have filed a written reply with the A.O. through Shri Vinod Kumar the assessee. The copy of reply has also been sent by the A.O.in his remand report. Considering the above facts and circumstances your honor is requested to please accept the appeal. ”

However, Ld. CIT(A) has mainly confirmed the addition on the ground that only affidavit has been filed and nothing else. Looking to the fact that all the three persons had earlier appeared before the Assessing Officer and on the second time these persons were suffering from viral fever. Since all the facts and material placed by the assessee have not been properly appreciated, therefore, we are restoring the entire matter back to the file of the AO to deal and decide the issue afresh after giving due opportunity to the assessee to decide this case.

In the result, appeal of the assessee is allowed for statistical purpose.