What did the Tribunal hold?

The Tribunal found merit in the assessee's contention that their explanations and documentary evidence were not considered. Therefore, the issues were set aside to the AO for fresh consideration.

The assessee appealed against the CIT(A)'s order confirming additions made by the AO. The assessee claimed that they provided documentary evidence to substantiate their claims, but these were not considered by the revenue authorities.

What were the issues?

Whether the revenue authorities properly considered the assessee's explanations and documentary evidence, and whether the assessment order passed under Section 144 was justified.

Sh. Naresh Sodhani, New Delhi vs ITO | ITAT Delhi 2016

Income Tax Appellate Tribunal, DELHI BENCH: ‘SMC-2’ NEW DELHI

Before: SHRI H. S. SIDHU

PER H.S. SIDHU, JM ORDER This appeal is filed by assessee against the order dated 21.10.2014 passed by the Ld. CIT(A)-XXVIII, New Delhi relating to Assessment Year 2006-07 on the following grounds:-

1. That on the facts and in the circumstances of the case and in law, the CIT(A) has erred in confirming the action of the AO of passing the assessment order u/s 144 of the I. T. Act, 1961.

2. That on the facts and in the circumstances of the case and in law, the CIT(A) has erred in confirming the addition of cash deposit in to the bank account of the assessee amounting to Rs, 15,05,000/-.

3. That on the facts and in the circumstances of the case and in law, the CIT(A) has erred in confirming the addition of Rs, 17,98,399/- representing sale proceeds of shares/investment.

4. That on the facts and in the circumstances of the case and in law, the CIT(A) has erred in confirming the addition of Rs, 20,405/- rejecting the deduction claimed u/s 80GG.

5. That the impugned appellate order is arbitrary, illegal, bad in law and in violation of rudimentary principles of contemporary jurisprudence.

6. That the Appellant craves leave to add/alter any/all grounds of appeal before or at the time of hearing of the Appeal.

Facts narrated by the revenue authorities are not disputed by the Ld. A.R. of the assessee, hence, the same are not repeated here for the sake of convenience.

Notice of hearing was sent to both the parties and in response to the same none appeared on behalf of the Department, nor any application for adjournment has been filed by the Department. Keeping in view of the facts and circumstances of the present case, I am of the considered view that no useful purpose would be served to serve the notice again and again to the Department, therefore, I am deciding this Appeal as Exparte qua Department, after hearing the Ld. Counsel of the assessee and perusing the records.

At the time of hearing, Ld. Counsel of the assessee has stated that assessee is having all the documentary evidence for substantiating his claim, but the Revenue authorities has not given the sufficient opportunity to the assessee for substantiating the claim before it. Ld. AR of the assessee further stated that AO has completed the assessment u/s. 144 of the Income Tax Act, 1961 and made the addition. Similarly, the Ld. CIT(A) has upheld the addition made by the AO by holding that the assessee did not furnish any explanation during the assessment proceedings as well as appellate proceedings which is contrary to the facts and law. In fact the assessee has given the explanation with the documentary evidence for substantiating the claim, but the same has not been considered by the Revenue Authorities. He requested that the issue in dispute may be set aside to the file of the AO for fresh consideration and for substantiating the claim of the assessee. Ld. Counsel of the assessee also undertakes that assessee will fully cooperate in the assessment proceedings and will not take any unnecessary adjournment.

I have heard the Ld. Counsel of the assessee and considered the submissions made by him. I find considerable cogency in the contention raised by the Ld. Counsel of the assessee that assessee has given the explanation with the documentary evidences for substantiating the claim, but the same has not been considered by the Revenue Authorities which is not permissible under the law.

Therefore, in the interest of justice, I set aside the issues in dispute to the file of the AO for fresh consideration, as per law, after considering all the documentary evidences. However, the assessee is directed to fully cooperate with the AO during the proceedings before him and not to take any unnecessary adjournment in the case and also produce all the necessary evidences before the AO to substantiate his claim.

In the result, the appeal filed by the assessee stands allowed for statistical purposes.

SH. NARESH SODHANI,NEW DELHI vs. ITO, NEW DELHI

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