2023 (3) TMI 773 - AT - Income Tax

Unexplained cash credit u/s 68 - submission of assessee that he used to collect commission for sending the cash through his account to the relatives of various persons in Bihar - As per CIT-A there was no exceptional situation in which the resident of India was unable to open a bank account specially for amounts like Rs. 10,000/- to Rs. 50,000/- as seen in this case - HELD THAT:- We find that the assessee has filed confirmation, bank statement and detailed written submissions to substantiate his contention. CIT(A) has not given any finding whether the additional evidence deserves to be admitted or required any consideration or not and straightway concluded that there was no exceptional situation in India for not opening a bank account.

CIT(A) neither himself nor through AO made any verification of such facts or evidence produced by assessee. The primary contention of assessee is that the amount deposited in Surat was immediately or next day withdrawn in Bihar. No such verification of fact if the amount deposited in the bank account of the assessee was withdrawn locally or such withdrawal was really made in Bihar or Eastern UP, as claimed by the appellant. Such facts of withdrawal could be cross verified from the banker of assessee. Hence, additional evidence filed before ld CIT(A), was neither considered nor the application of the assessee under Rule-46A was rejected, therefore,admit the additional evidence filed by the assessee and restore the grounds of appeal to the file of assessing officer to decide the issue afresh - grounds of appeal raised by the assessee are allowed for statistical purpose.

Validity of penalty levied u/s 271(1)(c) - Since we have restored the quantum appeal of the assessee to the file of Assessing Officer for deciding the issue afresh, therefore, order Of penalty under section 271(1)(c) will not survive.