9911796707
TMI Blog2021 (9) TMI 1199X X X X Extracts X X X X X X X X Extracts X X X X ..... the AD has no evidence on record is bad in law since credible information and reports are received from the Investigation Authorities of the department as a result of investigations made categorically along with sworn statements recorded from the persons who admitted the fact that they were engaged in the business of accommodating accommodation entries to the beneficiaries, the assessee company being one of such benefitted company during the FY 2008-09 relevant to the AY 2009-10. 3. The Ld. CIT(A) erred in holding that the AD has not given any opportunity to rebut the material used against the assessee though the assessee was duly intimated the information received by the AD and has given an opportunity letter dated 19.12.2016. 4. The L ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tly, the AO concluded the proceedings u/s. 143(3) r.w.s. 147 of the Act, vide order dated 30.12.2016, determining the total income of the assessee at Rs. 1,74,20,000/-. While doing so, the AO assessed a sum of Rs. 1,74,20,000/- as income of the assessee said to be cash deposits made in the bank accounts of the assessee. 3. Aggrieved by the order of AO, the assessee preferred an appeal before the CIT(A). 4. Before the CIT(A), the assessee besides filing written submissions, contended that the AO had failed to discharge burden of proof with regard to alleged cash transactions reflected in the bank accounts of the assessee to the extent of Rs. 1,74,20,000/-. Further, it was contended that the AO had failed to follow the principles of natural ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssions and perused the material on record as well as gone through the orders of revenue authorities. As per the findings of the AO, the assessee has not carried out any business activity and has deposited cash in his bank account. While, allowing the assessee's, the CIT(A), inter-alia, observed as under: "7.13 Further, the AD has not brought any other material including bank accounts held in the name of the assessee in which the said amounts have been deposited. Also, the AO has not conducted necessary investigation in order to ascertain the nature of the cash deposits and the person from whom the assessee had received the cash. Neither the AD has brought any evidence on record to demonstrate that the alleged unaccounted income receiv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er. Therefore, considering the totality of the case of the case, we remit the issue back to the file of the AO with a direction to decide the appeal taking into consideration the observations of the CIT(A) and contentions of the assessee before the CIT(A) as well as before him in accordance with law after providing reasonable opportunity of hearing to the assessee in the matter. The assessee is directed to substantiate its claim by way of documentary evidence before the AO. Thus, the grounds raised by the revenue are treated as allowed for statistical purposes.
10. In the result, appeal of the revenue is allowed for statistical purposes, in above terms.
Pronounced in the open court on 21st September, 2021. X X X X Extracts X X X X X X X X Extracts X X X X
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