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Facts
The assessment was completed under Section 144, leading to an addition of Rs.4,37,81,889/- under Section 69 for unexplained investments. The CIT(A) partly sustained the addition at Rs.75,00,000/-. The assessee appealed, arguing that the CIT(A) erred in the estimation and overlooked crucial remand reports from the Assessing Officer.
Held
The Tribunal observed that the CIT(A) had failed to consider a significant remand report dated 22/27.09.2016 and the assessee's rejoinder. With no objection from either party, the matter was restored to the file of the CIT(A) for fresh adjudication. The CIT(A) is directed to consider the overlooked remand report and provide the assessee with an adequate opportunity of being heard.
Key Issues
Whether the CIT(A) erred in sustaining an addition of Rs.75,00,000/- as unexplained investment without considering the Assessing Officer's remand report and whether such estimation was arbitrary.
Sections Cited
Section 144 of the Income-Tax Act, 1961, Section 69 of the Income-Tax Act, 1961
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH: ‘G’ NEW DELHI
Before: SHRI G.S. PANNU, VICE- & SHRI CHALLA NAGENDRA PRASAD
ORDER PER CHALLA NAGENDRA PRASAD, JM This appeal is filed by the assessee against the order of the learned Commissioner of Income-Tax (Appeals), Karnal dated 16.03.2017 for the assessment year 2009-10. The assessee raised the following grounds:
1. That on the facts and circumstances of the case, the Ld. CIT(Appeals) has erred in estimating the initial investment in Mutual Funds @ Rs.75,00,000/- and treating the same as Unexplained income of the assessee ignoring the vital fact that all transactions and investments stood properly explained and duly examined, verified and acknowledged by the A.O in his various remand reports submitted before the Ld. CIT(Appeals).
2. That on the facts and circumstances of the case, the estimated addition of Rs.75,00,000 to the returned income of Rs.1,42,396/- of the assessee is arbitrary, unwarranted and deserves to be deleted. 3. That the Appellant craves to add, amend or delete any ground(s) of appeal before or during the hearing of the appeal.
The learned counsel for the assessee at the outset submitted that the assessment was completed under Section 144 of the Income- Tax Act,1961 by making an addition of Rs.4,37,81,889/- under Section 69 of the Income-Tax Act,1961 treating the investment made in mutual funds and deposits in HDFC Bank. The learned counsel submits that in the course of appellate proceedings, the assessee produced various evidences in the form of additional evidences and the learned CIT (Appeals) has called for several remand reports and decided the appeal of the assessee sustaining addition partly at Rs.75,00,000/-. The learned counsel submits that there is no basis for sustaining part addition of Rs.75,00,000/- by the learned CIT (Appeals).
The learned counsel for the assessee further referring to page No.165 of the paper books submits that the learned CIT (Appeals) while deciding the appeal of the assessee did not consider the remand report dated 22.09.2016 of the Assessing Officer as well as the rejoinder of the assessee.
On a query from the Bench whether the matter be restored to the file of the learned CIT (Appeals) for considering the remand report which was omitted to consider by the Ld. CIT(Appeals), the learned counsel has no serious objection. Learned Departmental Representative also expressed no objection.
Considering the submissions of the rival parties, we restore this appeal to the file of the learned CIT (Appeals) for deciding afresh in accordance with law after considering the remand report dated 22/27.09.2016 which was inadvertently overlooked while deciding the appeal. Needless to say, the assessee be provided adequate opportunity of being heard.
In the appeal, the appeal of the assessee is allowed for statistical purposes. Pronounced in the open court on 30.01.2024.
( G.S. PANNU ) (CHALLA NAGENDRA PRASAD) VICE-PRESIDENT JUDICIAL MEMBER Dated: 30th January, 2024 Mohan Lal