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Facts
The assessee challenged an ex-parte addition made by the AO under Section 68 for cash deposits, which was subsequently confirmed by the CIT(A). The assessee argued that the addition was based on cash sales from its milk business and that the CIT(A) failed to consider documents submitted during the appeal.
Held
The Tribunal quashed the impugned order and remitted the matter back to the Assessing Officer. The AO was directed to consider the issue afresh, providing the assessee a proper opportunity of being heard and to consider all evidence presented.
Key Issues
Whether the ex-parte addition under Section 68 for cash deposits was valid without considering the assessee's explanation and evidence regarding cash sales from business, and whether the CIT(A) erred in confirming the addition without proper consideration of documents.
Sections Cited
250, 144, 68
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH ‘A’, NEW DELHI
Before: MR. SHAMIM YAHYA
Shri Ganesh Kanodia, C.A. Appellant by : Respondent by : Shri Kanv Bali, Sr. D.R. Date of Hearing 12.06.2024 Date of Pronouncement 26.06.2024 O R D E R PER MS. MADHUMITA ROY – JUDICIAL MEMBER :
The instant appeal filed by the assessee is directed against the order dated 27.09.2023 passed by the Commissioner of Income Tax (Appeals) – NFAC, Delhi under Section 250 of the Income Tax Act, 1961 (hereinafter referred as to ‘the Act’) arising out of the order dated
Ashok Kumar vs CIT. Asst.Year : 2017-18 - 2 - 18.12.2019 by the Assessing Officer (AO), Gurgaon under Section 144 of the Act for Assessment Year 2017-18.
At the very threshold of the matter, the Learned Counsel appearing for the assessee submitted before us that the addition was made by the Learned AO under Section 68 of the Act by an ex parte order on cash deposit made by the assessee. It was contended that the assessee is in the business of selling milk and majority of the sales is made in cash. In appeal, though sufficient documents were placed before the Learned CIT(A), these were not considered and addition finally was confirmed. Under these circumstances, the assessee further prays for an opportunity of being heard before the Learned AO in order to place the matter effectively in favour of the assessee, which with all his fairness the Learned DR has not objected.
Having heard the Learned Counsel appearing for the parties and having regard to the facts and circumstances of the case, we in order to prevent the miscarriage of justice find it fit and proper to quash the impugned order and remit the issue to the file of Learned AO for Ashok Kumar vs CIT. Asst.Year : 2017-18 - 3 - considering of the same afresh upon providing an opportunity of being heard to the assessee and upon considering the evidence on record or any other evidence which the assessee may choose to file at the time of hearing of the matter.
In the result, appeal of the assessee is allowed for statistical purposes.