ARIEF NAGOOR ARIEF,CHENNAI vs. DCIT NON CORPORATE CIRCLE 11, CHENNAI

Brief facts of the case are that the assessee is a commission agent, filed his return declaring income of ₹.44,86,430/- and the same was processed under section 143(1) of the Act. The return filed by the assessee was selected for scrutiny and the assessee filed all details against statutory notices. After scrutiny of the details filed by the assessee, the assessment under section 143(3) of the Act was completed by making addition to the extent of ₹.62,81,400/- towards cash credits in the bank accounts since the assessee has failed to produce evidence to substantiate genuineness of credits.

The assessee carried the matter in appeal before the ld. CIT(A). After considering the submissions of the assessee, the ld. CIT(A) confirmed the addition since the assessee failed to produce supporting evidence, etc.

On being aggrieved, the assessee is in appeal before the Tribunal. By filing various detailed as required and sought for, the ld. Counsel for the assessee has prayed for deleting the addition made under section 68 of the Act.

On the other hand, the ld. DR strongly supported the orders of authorities below and fairly conceded that the issue may be remitted back to the file of the Assessing Officer since the assessee has filed various details, which required to be verified by the Assessing Officer.

We have heard both sides, perused the materials available on record and gone through the orders of authorities below. Since the assessee has not produced any evidence with regard to the genuineness of the cash credit, the Assessing Officer made addition under section 68 of the Act. Before us, by filing various details such as, list containing the source explained by assessee for the amounts deposited in the bank, confirmation from various creditors, ROI of assessee’s wife for the assessment years 2012-13 & 2013-14, receipt of property tax, rental agreement, etc, the ld. Counsel for the assessee prayed for deleting the addition made under section 68 of the Act. However, we find that the above details were not available before the Assessing Officer while concluding the assessment. Since, the ld. DR was of the opinion that the above details filed by the assessee required to be examined by the Assessing Officer, we set aside the order of the ld. CIT(A) on this issue and direct the Assessing Officer to examine the details as may be produced by the assessee and decide the issue afresh in accordance with law after allowing an opportunity of being heard to the assessee. The assessee is also directed to produce all details/evidences before the Assessing Officer for verification. Thus, the ground raised by the assessee is allowed for statistical purposes.

In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on the 24th May, 2018 at Chennai.