PINNAKA PRASAD RAO,PAPANNA PET MANDAL MEDAK DIST vs. ITO., WARD-1, SANGAREDDY

Assessee is an individual, deriving income from salary and house property. He filed the return of income for the assessment year 2017-18, declaring an income of Rs. 2,89,150/-. Learned Assessing Officer found that there were deposits in his account during demonetisation period to the tune of Rs. 15,33,942/-. Stating that the assessee did not explain the source for such deposits, the learned Assessing Officer added the entire amount.

Assessee preferred appeal before the learned CIT(A) and submitted in the statement of account that the deposit of Rs. 1 lakh is out of the agricultural income and the deposit of Rs. 14,33,944/- was in fact not deposited in his account, but in fact it was deposited in the account of Geeta Educational Society of which the assessee is a director. According to the assessee, inadvertently, his PAN was linked to the bank account of the Geeta Educational Society. Assessee claims to have submitted the bank account of the Geeta Educational Society, wherein such a deposit is reflected, but the impugned order reveals that no such statement was submitted.

Learned CIT(A) observed that no evidence is produced and the assessee also did not enter appearance before him and, therefore, there were no grounds to interfere. Accordingly, he dismissed the appeal. Hence, this appeal.

It is contended by the assessee that the account where the sum of Rs. 14,33,942/- was deposited in fact belongs to the Geeta Educational Society and it does not belong to him at all. Assessee further contended that he did not receive the notices because those were sent by e-mail and he had no access to e-mail and his auditor also has not informed him. Learned AR contended that assessee does not stand to gain by not producing the same.

Learned DR, placed strong reliance on the orders of the Revenue authorities and vehemently opposed to receive the additional evidence.

I have gone through the record in the light of the submissions made on either side. It is a fact that the assessee pleaded before the learned CIT(A) by way of statement of facts that Rs. 1 lakh is part of his agricultural income and Rs. 14,33,942/- does not belong to him as reflected in the bank account of the Geeta Educational Society. Assessee pleads that the evidences could not be produced before the learned CIT(A) because he did not receive the notices and his auditor also did not inform him. Assessee does not stand to gain by withholding the best evidence in his custody unless prevented by some valid reason. There is no reason for me not to believe the plea taken by the assessee. I, therefore, receive the additional evidence, set aside the impugned order and restore the issue to the file of the learned Assessing Officer to decide the issue afresh. I direct the assessee to co-operate with the learned Assessing Officer in getting the matter disposed of on merits, without seeking any adjournments and the learned Assessing Officer to take a fresh look at the matter, after affording a reasonable opportunity of being heard to the assessee. Grounds are accordingly treated as allowed for statistical purposes.

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