RAMASAMY GOUNDER KUMARASAMY,ERODE vs. ITO, WRD-1(1), ERODE

This appeal filed by the assessee is directed against the order dated 29.11.2023 passed by the ld. Commissioner of Income Tax (Appeals), NFAC Delhi for the assessment year 2009-10.

At the outset, we note that the assessee is an individual, filed return of income declaring total income of ₹.5,40,000/-. Further we find that during the course of assessment proceedings, the Assessing Officer asked the assessee about the source for cash deposit made in the account of Smt. K. Sumathi, Propx. M/s. Raja Traders, Erode. The assessee stated that he had cash balance in his books of account, which was the source for depositing in the bank and transfer it to M/s. Raja Traders, a concern of Smt. K. Sumathi. Further, the Assessing Officer asked the assessee for cash book for the full period, for non-production of the cash book, added the cash credit to the total income of the assessee on account of unexplained cash credit. Before the ld. CIT(A), the entire cash book was furnished, but, however, rejected the same treating it as additional evidence filed without proper explanation and thereby, the ld. CIT(A) confirmed the views of the Assessing Officer.

Before us, the ld. AR Shri S. Sridhar, Advocate submits that the assessee has produced cash book before the ld. CIT(A), but, it was not considered and prayed to remand the matter back to the file of the Assessing Officer for fresh consideration taking into account the cash book as a new evidence.

The ld. DR Shri P. Sajit Kumar, JCIT did not report objection in remanding the matter to the file of the Assessing Officer.

As discussed above, the Assessing Officer added an amount of ₹.21,00,000/- in the hands of the assessee by stating that the Swasthic Agencies and Raja Traders are related parties, for non-submission of cash book. The said cash book was filed before the ld. CIT(A), but, however, it was held not admissible in view of the reason that the said cash book was not filed before the Assessing Officer. Therefore, taking into consideration of the facts and circumstances of the case and 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 and the assessee is directed to file the entire cash book before the Assessing Officer and further evidence, if any, in support of his claim for consideration.

In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on 14th June, 2024 at Chennai.