M/S DURGA ENGINEERING CO.,HOWRAH vs. DCIT, CIRCLE-47, KOLKATA, KOLKATA

The only issue in this appeal of assessee is to be decided as to whether the CIT-A justified in dismissing the appeal of assessee without initiating the procedure i.e. seeking for remand report in respect of filing additional/new evidence in the facts and circumstances of the case.

The ld.AR before us submits that the assessee filed additional evidence in support of cash deposits as found by the AO were made out of old deposits before the CIT-A. The CIT-A without taking into any step i.e seeking the remand report from the AO regarding filing of the additional evidence dismissed the appeal of assessee. The ld.AR submits that the AO on an information received from CIB sought explanation from the assessee. The assessee, however, could not produce the relevant evidence in support of its claim that the cash deposits in bank were remained from time to time and were made out of old deposits. The ld.AR of the assessee in support of its claim filed the details by way of paper book containing pages 1 to 17 and referred the balance sheet as on 31-03-2012 at page 1 of the paper book and argued that the assessee has shown an amount of Rs.18,35,409.20 towards earnest money and security deposit. The ld.AR of the assessee also took us through relevant page-13 of the paper book and argued that the CIT-A did not consider this document at the first appellate proceedings and as such urged to remand the issue to the file of the AO for fresh consideration of the same as filed by way of paper book before us.

The ld.DR relied on the orders of the authorities below.

Heard rival submissions and perused the material available on record. We find that the AO added the said amount being not offering any explanation. However, we noticed that the term deposit in Bank of Baroda were added twice, which is clearly evident from the Table of Asset as prepared by the AO at para 3 of the assessment order. We also noticed that the CIT-A inspite IT A No. 2057/Kol/16 Durga Engg.Co. 2 of having acknowledged with the filing of additional evidences in demonstrating cash deposits by the assessee without taking into any step i.e. seeking remand report from the AO dismissed the appeal of assessee. We find that the details as filed in the paper book pages 1- 17 by the assessee before us are very much necessary for fair adjudication by the AO. Therefore, taking into considerations the facts of the case and findings of the authorities below together with the additional evidences as filed in the paper book before us, we deem it fit and proper to remand the issue to the file of the AO for fresh consideration and verification of the same and to pass an appropriate order in accordance with law after giving the assessee adequate opportunity of hearing. The assessee shall be at liberty to file requisite evidences to substantiate its claim properly. Therefore, grounds raised by the assessee are allowed for statistical purpose.

In the result, the appeal of the assessee is allowed for statistical purposes. ORDER PRONOUNCED IN OPEN COURT ON 29/03/2017 Sd/- Sd/- Waseem Ahmed S.S. Viswanethra Ravi Accountant Member Judicial Member Dated 29 -03-2017 *PP/SPS: Copy of the order forwarded to: 1. The Appellant/Assessee: M/s. Durga Engineering Company Ichapur Road, Canal Side, Santragachi, Howrah-711104. 2 The Respondent/Department: TheDy. Commissioner of Income Tax, Circle-47, 3 Govt Place, West, Kolkata-700 001.