NANGANALLUR COOP STORES JJ556,CHENNAI vs. ITO, NON CORPORATE WARD-19(3), CHENNAI

This appeal by the assessee is directed against the order dated 19.12.2023 passed by the ld. Commissioner of Income Tax, National Faceless Appeal Centre [NFAC], Delhi for the assessment year 2017-18.

At the outset, we note that the Assessing Officer found cash deposits in the accounts of the assessee during demonetization period besides huge credits in its bank accounts. On perusal of the assessment order, we note that the assessee made partial submissions in response to the notices issued by the Assessing Officer. As per report received by the Department, the assessee have made total credits entries amounting to ₹.1,75,23,763/- and cash deposits during demonetization to the tune of ₹.10,61,197/- in its bank account during the year under consideration. Based on the materials available on record and in the absence of complete documentary evidence/ explanations from the assessee, the Assessing Officer proceeded to complete the assessment under section 147 r.w.s. 144 of the Income Tax Act, 1961 [“Act” in short], by determining the net profit earned by the assessee at 8% of the gross turnover, which comes to ₹.14,86,796/- and added to the total income of the assessee. Having aggrieved by the order of the Assessing Officer, the assessee preferred an appeal before the ld. CIT(A), but, however, for non- submission of documentary evidence in support of his claim, the ld. CIT(A) confirmed the order of the Assessing Officer.

Before us, the ld. AR Shri Abhishek Murali, C.A. prayed to afford an opportunity to the assessee as the assessee is ready to prosecute its case before the Assessing Officer without fail. Further, he submits that the assessee is ready with all documentary evidences in support of its claim and requested to remand the matter to the file of the Assessing Officer. As discussed above, there was no proper compliance before the Assessing Officer and the ld. CIT(A) with relevant documentary evidences. Taking into account and undertaking as given by the ld. AR on behalf of the assessee that the assessee is ready to prosecute the case without fail, in the interest of natural justice, we deem it proper to remit the matter back to the file of the Assessing Officer for fresh consideration. The assessee is at liberty to file evidences, if any, before the Assessing Officer. Thus, grounds raised by the assessee are allowed for statistical purposes.