ITAT Cuttack Judgments — November 2020

The Tribunal condoned the delay in filing the appeal. It held that the assessee had sufficient cash balance and receipts to explain the bank deposits and demand drafts, leading to the deletion of these additions. However, the disallowances for expenses were upheld due to lack of supporting evidence.

The Tribunal restored the matter to the CIT(A) for fresh adjudication, granting the assessee one more opportunity to present their case. A cost of Rs. 5,000 was imposed on the assessee for their conduct.

The Tribunal observed that the CIT(A) had not decided the legal issue regarding the reopening of assessment, which was raised by the assessee. Therefore, the Tribunal remanded the case back to the CIT(A) to decide both the legal and merit issues de novo.

The Tribunal, considering the submissions and case laws, decided to remit the issue back to the AO for fresh adjudication. The AO is directed to examine the nature of the income and its utilization for revenue or capital expenditure.

The Tribunal, considering the submissions and case laws, decided to remit the issue back to the AO for fresh adjudication. The AO is directed to examine the nature of the income and its utilization for revenue or capital expenditure.