PARVEEN BANU HEBBAL,HYDERABAD vs. INCOME TAX OFFICER, WARD-8(1), HYDERABAD

The appeal filed by the assessee is barred by limitation by 166 days. She has moved a condonation petition explaining reasons thereof. I have heard both the parties on this preliminary issue. Having considered the reasons provided in the petition, I condone the delay and admit the appeal for hearing.

The grounds raised by the assessee read as under :

The brief facts of the case are that assessee, who is an individual, filed her return of income for A.Y 2020-21 on 14.10.2020 declaring income under the head Salary of Rs.22,15,660/- and after claiming deductions, claimed refund of Rs.56,160/-. Thereafter, a revised return was filed on 22.05.2021 declaring income of rs.1,20,860/- after claiming deduction of Rs.25 lakhs u/s 80GGC and claimed a refund of Rs.5,52,450/-. The return was processed by CPC u/s 143(1) of the Act. Subsequently, the assessee’s case was selected under CASS for complete scrutiny and notices u/s 143(2) and 142(1) of the Act were issued. In response to the said notices, assessee filed requisite information and submitted explanation. Assessing Officer after verification of the material available on record, completed the assessment u/s 143(3) r.w.s. 144B of the Income Tax Act and passed assessment order dt.16.09.2022 determining the total income at Rs.31,83,210/- interalia making addition of Rs.25 lakhs towards disallowance u/s 80GGC, Rs.1,453/- towards interest on refund for A.Y. 2019-20 and Rs.5,60,900/- towards unexplained credits in the bank u/s 68 of the Act.

Feeling aggrieved with the order of Assessing Officer assessee filed an appeal before the ld.CIT(A), NFAC, Delhi, who dismissed the appeal of the assessee.

Ground no.1 is general in nature and requires no adjudication.

With respect to the ground no.2 i.e., disallowance of Rs.25 lakhs as claimed for deduction u/s 80GGC of the I.T. Act, the ld.AR submitted that someone has wrongly claimed it as donation towards political party and that she has not filed revised return. The ld.AR furthermore submitted that the proceedings with respect to this ground were exparte before the ld.CIT(A) and hence, requested the Bench to give one more opportunity to substantiate her case.

Per contra, the ld.DR relied upon the orders of lower authorities.

I have heard both sides and perused the material on record. On perusal of the record, it is clear that the ld.CIT(A) passed an exparte order with respect to this issue and hence, I am of the opinion that in the interests of justice, the assessee may be given one more opportunity to substantiate her case. Hence, I remand back this issue to the file of Assessing Officer.

Ground no.3 is with respect to treating the credits of Rs.5,60,900/- in the bank account of assessee as income assessable u/s 68 of the Act. The ld.AR for the assessee has submitted that this amount is matured in FDR and that now she has evidence to explain those credit entries totaling to Rs.5,60,900/-. The ld.AR filed documents (Paper Book containing 48 pages) now before me to substantiate the same and requested the Bench that the documents may be sent back to the Assessing Officer for verification.

Per contra, the ld.DR reported no objection for remanding the issue back to the file of Assessing Officer for verification.

I have heard the rival submissions and perused the material on record. In view of the request of ld.AR for remanding the issue of unexplained credit entries totaling to Rs.5,60,900/- back to the file of Assessing Officer and no objection from the ld.DR for the same, I deem it appropriate to remand back this issue also to the file of Assessing Officer for verification to examine the documents now filed by the assessee before me and decide the issue afresh after affording the opportunity of hearing to the assessee.

In view of the above reasons, in our view, the ends of justice will be met if the matter is remanded back to the file of Assessing Officer with a direction to decide the above two issues after considering the documents available on record and affording the opportunities of hearing to the assessee in accordance with law subject to payment of costs of Rs.3,000/- (Rupees Three Thousand only) to be deposited by the assessee in the Prime Minster Relief Fund within one month or from the date of receipt of this order or whichever is earlier.

The assessee shall be at liberty to file documents, if any, as required for proving her case and the Assessing Officer shall consider the evidence, if any, filed by the assessee. Needless to say the Assessing Officer shall examine those documents / evidence filed by the assessee and also the other documents available on record. After considering the documents filed by the assessee and the submissions made by the assessee, the Assessing Officer shall pass a detailed speaking order dealing with the contentions of the assessee. I have not adjudicated the other grounds on merits as I am setting aside the orders passed by the lower authorities to the file of Assessing Officer for fresh adjudication. Thus, the grounds of the assessee are allowed for statistical purposes.

In the result, the appeal of the assessee is allowed for statistical purposes.