ITO, KUMBAKONAM vs. A.THANGARAJ, KUMBAKONAM

Facts in brief are that the assessee is dealing with the business of puffed rice. The return of income filed by the assessee was initially processed/ 143(1) of the Income-tax Act, 1961 and after due process, the assessment was completed under Section 143(3) of the Act. During the course of assessment proceedings, the A.O. has found certain cash credits in the assessee’s bank accounts. When the A.O. asked the assessee for explanation, the assessee failed to explain before the A.O.

The assessee carried the matter in appeal before the Ld. CIT(Appeals). The assessee filed all the details and gave explanation before the Ld. CIT(Appeals). The Ld. CIT(Appeals), after considering the explanation given by the assessee, deleted the addition made by the A.O. in respect of cash credits and sustained the addition in respect of the unaccounted turnover.

On being aggrieved, both Revenue as well as the assessee are before us.

The Ld. D.R. has submitted that the assessee has not filed any details before the A.O. and only filed before the Ld.

On the other hand, the Ld.counsel for the assessee fairly accepted that the issues may be remitted back to the A.O.

We have heard both sides and perused the records and gone through the orders of the authorities below. By considering the submissions of both the parties, we find that the order passed by the Ld. CIT(Appeals) has to be set aside. Accordingly, we set aside the order of the Ld. CIT(Appeals) and direct the A.O. to decide the issues de novo after giving reasonable opportunity of being heard to the assessee.