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2018 (8) TMI 1248 - AT - Income TaxAdditions made by AO confirmed by the CIT(A) - discrepancy in books of accounts - According to the AO, during the course of assessment proceedings he himself vide letter dated 28/12/2010 agreed for an addition of ₹ 60 lakhs to cover up the deficiencies as pointed by the AO for various entries. - the consent given by the assessee cannot be applied as a Doctrine of estoppels against the assessee and the assessee has a legal right to challenge the assessment order before the appellate authority. Held that:- Justice should not be denied on account of lapses in procedural compliances. Sec. 246 does not lay down that an appeal against the addition of a surrendered amount per se would be disentitled. Even if there is an agreed addition, the admission or surrender of that income cannot operate as a estoppels and the Income Tax authorities are bound to consider and allow whatever relief is permissible under law. The assessee had himself agreed for addition of ₹ 60 lakhs, the CIT(A) refused to take up the appeal on merits. Since the assessee was trying to put forward supporting evidences before the CIT(A), in that circumstances, it was appropriate for the CIT(A) to call for remand report from the Assessing Officer and to decide the matter afresh. Merely because the assessee failed to file his objections to the variation suggested in the notice under section 144B, it cannot be said that the assessment ceases to be an assessment under section 143(3). Hence, the assessee can file an appeal against the assessment before the Appellate Assistant Commissioner in spite of his failure to file objections to the draft assessment order under section 144B - Matter restored before AO - Decided in favor of assessee. Additions u/s 68 - proving source of cash credits - Held that:- If the assessee files only confirmation letters and offers no explanation regarding the nature and source thereof, the explanation offered by the assessee cannot be considered as satisfactorily explained before the AO. Then the sum so credited is to be treated as unexplained credits. In the present case, though the amount was contributed by the partners as their capital introduction, only confirmation letters from the partners cannot prove all the ingredients of section 68 of the Act and it will only prove the identity of the lenders. Matter remanded back to AO - Decided partly in favor of assessee.
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