2023 (5) TMI 1095 - AT - Income Tax

Unexplained cash deposits - HELD THAT:- As assessee need to be given one more opportunity to adduce evidence from Shri Indrajeet Chaterjee that after withdrawal of amount he has deposited the same in assessee’s/proprietary bank account as contended by assessee even though we are aware that assessee has changed the source of income from sale of cattle etc - set aside the impugned order of Ld. CIT(A) and restore the appeal back to the file of Ld. CIT(A) to decide afresh the issue as observed .

Unexplained cash credit - HELD THAT:- As the source of Rs.9.60 Lakhs stands proved and since its nature of transaction is loan as noted by AO in his remand report, it cannot be taxed. And since AO has accepted that Rs.10 Lakhs has been offered by assessee as income in his remand report as well as the fact that assessee has offered the same for taxation. Therefore Rs.9.60 Lakhs and Rs.10 Lakhs ought to have been deleted by the Ld. CIT(A) as observed in the remand report of AO. Therefore, we direct deletion of addition of Rs.19.60 Lakhs. Thus, Rs.19.60 Lakhs stands explained, so Rs.19.60 Lakhs is directed to be deleted; and the addition of Rs.4.73 crores is set aside back to Ld. CIT(A) as directed.

CIT-A power to issue directions to AO to reopen the assessment for earlier/subsequent AYs - Action of the Ld. CIT(A) directing the AO to assess the unexplained cash credit in the year in which it was received u/s150(1) - whether, while disposing of the assessee’s appeal for Assessment Year 2013-14, whether the Ld. CIT(A) has power to give directions to the AO to reopen the assessment for any other Assessment Year’s? - HELD THAT:- As per case of ‘N. KT. Sivalingam Chettiar [1967 (3) TMI 16 - SUPREME COURT] observed that a finding within the second proviso to section 34(3) must be necessary for giving relief in respect of the assessment of the year in question; and that the word “finding” only covers material questions which arise in a particular case for decision by the authority hearing the case or appeal which, being necessary for the subject of the controversy between the interested parties, or on which the parties concerned have been given a hearing.

Since no decision contrary to the above case laws has been brought to our notice, respectfully following the above decision of the Hon'ble Supreme Court, High Courts and the Tribunal in M/s. Sahara City Homes, Bareilly [2022 (2) TMI 171 - ITAT LUCKNOW] we are of the view that the Ld. CIT(A) had no power to issue directions to the Assessing Officer to reopen the assessment for earlier/subsequent Assessment Years which was not in appeal before him.