TMI Blog2021 (2) TMI 444X X X X Extracts X X X X X X X X Extracts X X X X ..... plea of the assessee and the reasons for rejecting the same. CIT (A) has confirmed the addition as deemed income merely stating that the assessee could not explain the source of the cash credit in question even during the appellate proceedings. CIT(A) has not discussed the reasons for not accepting the explanation regarding source of cash credit in question. CIT (A) has not even discussed the plea of the assessee and the reasons for rejecting the same. During assessment proceedings not even a single notice was issued to the party, from whom the assessee had taken loan - CIT (A) has also ignored this aspect while passing the impugned order. Thus issues involved in the present appeal require fresh adjudication by the Ld. CIT (A) on merits ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ingly, the AO passed the assessment order u/s 143(3) r.w.s. 147 of the Act, determining total income of the assessee at ₹ 2,19,55,940/- (rounded off), after making addition of ₹ 2,00,00,000/- u/s 68 and addition of ₹ 3,00,000/- u/s 69A of the Act. The assessee challenged the assessment order before the Ld.CIT (A). The Ld.CIT (A) after hearing the assessee dismissed the assessee s appeal and confirmed the action of the AO. Against the said order, the assessee is in appeal before this Tribunal. 3. The assessee has challenged the impugned order passed by the Ld. CIT (A) on the following effective grounds:- Ground No. 1: Unexplained cash credit u/s 68 On the facts and in the circumstances of the case and in law, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erred in initiating penalty proceeding u/s 271 (1) (c) for inaccurate particulars of income (relevant to Ground No. 1) and concealment of income (relevant to Ground No. 1) and concealment of income (relevant to Ground No. 2.) The Ld. CIT (A) was not justified to dismiss this ground of appeal by merely stating in her order in para 5.4, penalty proceedings are separate proceedings and merely on initiating no injury occurred to assessee. Appellant prays proceedings initiated may please be quashed. Ground No. 4: Interest U/s 234 A, 234B, 234C 234D On the facts and in circumstances of the case and in law, the Ld. CIT (AO) erred in charging interest u/s 234A, 234B, 234C and 234D of the IT Act, 1961. The Ld. CIT (A) was not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed acknowledgment of return of income, computation audited profit and loss account, audited balance sheet and audit report along with the submissions. However, the authorities below have made/sustained the addition u/s 69 of the Act without taking into consideration, the evidence adduced by the assessee. The Ld. counsel invited our attention to the impugned order and pointed out that the Ld. CIT(A) has merely endorsed the findings of the AO without discussing the merits of the case. Accordingly, the Ld. counsel submitted that, since the Ld. CIT(A) has passed the impugned order in a mechanical manner without appreciating the evidence on record, the same is liable to be set aside. Therefore, the additions sustained may be deleted or in alt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e source of the cash credit in question even during the appellate proceedings. The Ld. CIT(A) has not discussed the reasons for not accepting the explanation regarding source of cash credit in question. We further notice that the Ld. CIT (A) has not even discussed the plea of the assessee and the reasons for rejecting the same. As pointed out by the Ld. counsel, during assessment proceedings not even a single notice was issued to the party, from whom the assessee had taken loan of ₹ 2,00,00,000/-. The Ld. CIT (A) has also ignored this aspect while passing the impugned order. These facts suggest that the Ld. CIT(A) has passed the impugned order in a mechanical manner. Hence, in all fairness, we are of the considered view that the issue ..... X X X X Extracts X X X X X X X X Extracts X X X X
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