2021 (4) TMI 490 - AT - Income Tax

Addition u/s 69B - no explanation to sources for the investment made - CIT- deleted addition admitting additional evidences - whether CIT(A) has not given proper opportunity of hearing to the A.O. while deleting the addition? - HELD THAT - AO submitted remand report on 21.10.2013. The assessee once again filed submissions before Ld. CIT(A) on 16.1.2014. The Ld. CIT(A), on the basis of these submissions and additional evidences without confronting these submissions to the A.O. deleted the additions. By reading the Ld. CIT(A)'s order, we are not in a position to appreciate on what is the basis for deletion of the additions made by the A.O. The order does not show any evidence that Ld. CIT(A) has considered to delete the additions and it is not based on any concrete evidence. Being so, in our opinion, in the interest of justice, it is appropriate to remit the entire issue to the file of the A.O. for reconsideration of the case afresh. Appeals of the revenue are allowed for statistical purposes.

Summary

Issues involved:
1. Assessment Year 2006-07: Allowance of relief without proper evidence.
2. Assessment Year 2008-09: Disallowance of expenses and additions without justification.

Analysis:

Assessment Year 2006-07:
The appellant disputed the relief allowed by the CIT(A) in the assessment year 2006-07. The appellant contended that the CIT(A) erred in allowing relief without adequate evidence. The appellant raised concerns regarding the investment made in Anekal land, loan taken from a specific individual, and various other financial transactions. The Assessing Officer had added significant amounts to the appellant's income based on these transactions. However, the CIT(A) deleted these additions, leading the revenue to appeal the decision. The tribunal noted that the CIT(A) did not provide a clear basis for deleting the additions and did not present concrete evidence supporting the deletions. Consequently, the tribunal decided to remit the issue back to the Assessing Officer for a fresh reconsideration of the case.

Assessment Year 2008-09:
In the assessment year 2008-09, the appellant raised multiple issues related to disallowances and additions made by the Assessing Officer. The appellant challenged the disallowance of interest payments and other expenses without justification. The Assessing Officer had added various amounts to the appellant's income, alleging discrepancies and undisclosed income. However, the CIT(A) overturned these additions, prompting the revenue to appeal the decision. The tribunal observed that the CIT(A) did not provide a clear rationale for deleting the additions and did not offer substantial evidence supporting the deletions. As a result, the tribunal decided to remit the entire issue back to the Assessing Officer for a fresh review of the case.

In conclusion, the tribunal allowed the appeals of the revenue for statistical purposes, emphasizing the need for a comprehensive reconsideration of the issues by the Assessing Officer. The judgment highlighted the importance of evidence-based decision-making and the necessity for clear justifications in tax assessments to ensure fairness and accuracy in determining tax liabilities.