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Facts
The assessee filed a petition claiming that the issue regarding the disallowance of Rs. 14,00,000/- for sundry creditors was not decided in a previous order. This issue was not challenged before the CIT(A) but was argued before the bench. The Assessing Officer had disallowed this amount as unexplained sundry creditors for land.
Held
The Tribunal noted that the ground regarding the disallowance of Rs. 14,00,000/- on account of unexplained sundry creditors was raised as an additional ground but not agitated specifically during the appeal arguments, hence it remained un-adjudicated. Given that other issues were already set aside and remanded, the Tribunal, in the interest of justice, decided to also remand this issue.
Key Issues
Whether the disallowance of Rs. 14,00,000/- on account of unexplained sundry creditors for land was correctly made and if so, the adjudication of this ground which was not previously decided.
Sections Cited
Section 2(22) of the Income Tax Act, 1961
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Per : N K Choudhry, Judicial Member:
The Assessee by filing a petition dated 07/12/2023 has claimed that though the Hon’ble Court vide order dated 07-11-2023 passed in the captained appeal, remanded the other issues/grounds raised by the Assessee to the file of the Assessing officer/Ld. Commissioner of Income Tax (Appeals) { in short “Ld. Commissioner” }, however may be inadvertently not decided the issue/ground relating to disallowance of Rs. 14,00,000/- qua sundry creditors, which was taken before the Hon’ble bench by filling a petition dated 06-07-2023 . It is pertinent to note that the above ground was also not challenged before Ld. CIT(A) but the same was argued before the Bench during the course of hearing, therefore the Assessee’s humble request for passing the suitable corrigendum, as the adjudication of this ground is necessary in the interest of justice.
We have considered the claim of the Assessee, who by filling a petition dated 06-07-2023 not only filed the concise grounds of appeal but also raised the additional ground of appeal which reads as under:
4. On the facts and circumstances of the appellant’s case and in law, the Ld. Assessing Officer erred in disallowing the amount of Rs.14,00,000/- on account of alleged un-explained sundry creditors for land, for the reasons mentioned in the impugned order or otherwise.
3. We have perused the Assessment Order, wherein on perusal of the submissions made by the Assessee, it was seen by the Ld. Assessing Officer that the Assessee has also debited the amount of Rs.14,00,000/- on the head “purchases made by Shri Balasaheb Vichare” and further the same amount of sundry creditors for land in the name of Shri Balasaheb Vichare amounting to Rs.14,00,000/- and therefore the Ld. Assessing Officer during the assessment proceedings asked the Assessee to clarify the same along with supporting evidences. As observed by the Ld. Assessing Officer, the Assessee failed to furnish any details about sundry creditors of the land and the same has been remained unexplained and therefore in the absence of any cogent evidence, the Ld. Assessing Officer held the said amount of Rs.14,00,000/- as unexplained and consequently added the same in the income of the Assessee. Admittedly the Assessee also did not challenge this addition before the Ld. Commissioner of Income Tax. Therefore the said ground/issue was not decided by the Ld. Commissioner of Income Tax. However, we recollect that though the Assessee by filling a petition dated 06-07-2023 has raised specific additional ground qua disallowance of Rs.14,00,000/- on account of alleged un-explained sundry creditors for land, however, at the time of argument of appeal, did not agitate the same specifically and M/s Shadawal Enterprises therefore the said ground remained to be un-adjudicated by us, while deciding the captioned appeal . Whatsoever it may be, as we have already set aside the order passed by the Ld. Commissioner of Income Tax, and remanded the issue qua addition of Rs.1,30,00,000/- as un- explained purchase expenses allegedly paid to Shri Ganesh Vithal Indore, to the file of Ld. AO for decision de-novo and the issue qua additions of Rs.18,75,645/- and Rs.12,42,542/- respectively on account of separation of opening stock & adhoc disallowance and on account of un-explained labour charges and purchases, to the file of Ld. Commissioner for adjudication of the same, therefore considering the peculiar facts and circumstances, on the same reasoning as mentioned in para no. 9.1 of the order dated 07-11-2023 passed in the captioned appeal and proper adjudication of the issue in hand and for the substantial justice, we are also inclined to remand the instant issue qua disallowance of Rs.14,00,000/- on account of sundry creditors to the file of the Ld. Commissioner for decision on the same, suffice to say by affording reasonable opportunity to the Assessee. The Assessee is also directed to file the relevant documents in support of its claim. Accordingly, the issue under consideration stands remanded in the aforesaid terms.
Thus this corrigendum specifically para no. 3 of the corrigendum be read as Para No. 9.2 of the order dated 07-11-2023 passed in the captioned appeal i.e. .