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Income Tax Appellate Tribunal, DELHI BENCH: ‘G’ NEW DELHI
Before: SHRI N. K. SAINI & MS SUCHITRA KAMBLE
This appeal is filed by the assessee against the order dated 03/09/2014 passed by CIT(A)-XII, New Delhi for Assessment Year 2011-12.
The grounds of appeal are as under:-
The Learned Commissioner of Income Tax (Appeals) has erred both on facts and in law in upholding the decision of Learned Assessing Officer in making an addition u/s 68 on account of unexplained cash credits of Rs.56,75,000/-.”
The assessee filed return of income on 29.09.2011 declaring at loss of Rs.69,547/-. The return was processed u/s 143(1) of the I.T. Act, 1961.
Thereafter the case was selected for scrutiny through CASS (Computer Assisted Scrutiny Selection). Notices u/s 143(21 and 142(1) of the Income Tax Act, 1961 were issued. In response, Chartered Accountant / Authorised Representative of the assessee attended the proceedings from time to time and submitted the details asked for Books of accounts were produced and examined on test check basis. During the year under consideration the assessee company has shown its object of carrying on infrastructure activities, though the assessee during the year under consideration has not undertaken any business activity. During the course of assessment proceedings the Assessing Officer observed that huge amount has been credited in the bank accounts of the assessee. Vide order sheet dated 21/11/2013 the assessee was specifically asked to explain the source of these cash deposits in the accounts of the assessee. But instead of producing the explanation the assessee had merely produced bank statement before the undersigned. Thereafter vide order sheet entry dated 26/02/2014 the assessee was again asked to produce cash book for the year under consideration but instead of producing the same the assessee had produced the cash book for F. Y. 2005-06 to 2009-10. The Assessing Officer further observed that the assessee received an amount of Rs. 37,50,000/- in cash in the bank account no. 302010200004268 from 01/04/2010 to 30/04/2010, Rs, 8,25,000/ - in cash during the period 0l/07/2010 to 31/07/2010 and Rs 5,00,000/- in cash during the period 01/11/2010 to 31/11/2010 in the account no 473010200003155 of the axis bank. Further, the assessee also received Rs. 1,00,000/- in cash on 07/10/2010 and Rs 5,00,000/- on 15/12/2010 in the account on 157010200006361 of the axis bank. The Assessing Officer held that the assessee failed to explain the source of the cash credit in its books of accounts. I have no other option except to tax the same in accordance with the provisions of section 68 of the Income Tax Act. Therefore, a sum amount of Rs. 56,75,000/- was added to the total taxable income of the assessee company.
Being aggrieved by the assessment order, the assessee filed appeal before the CIT (A). The CIT (A) dismissed the appeal of the assessee.
The Ld. AR submitted that the CIT (A) as well as the Assessing Officer has not considered the evidence produced before the authorities. Therefore, the matter may be remanded back to the file of the Assessing Officer.
The Ld. DR relied upon the order of the CIT (A) and assessment order but did not object for remanding back to the matter of the Assessing Officer.
We have heard both the parties and perused the material available on record. It is pertinent to note that the documents which were produced before the Assessing Officer as well as the CIT(A) has not at all been considered by both the Revenue authorities. Therefore, it will be appropriate to remand this matter for fresh to the file of the Assessing Officer. Needless to say, the assessee be given opportunity of hearing by following principle of natural jsutice.
In result, the appeal of the assessee is partly allowed for statistical purpose.
Order pronounced in the Open Court on 30th May, 2018.