9911796707
TMI Blog2023 (9) TMI 1219X X X X Extracts X X X X X X X X Extracts X X X X ..... Officer u/s 143(3) of the Income Tax Act, 1961 ("IT Act" for short) whereby the assessee's total income was determined at Rs. 39,95,777/- (rounded off to Rs. 39,95,780/-). The office note recorded by the Assessing Officer at page 6 of the assessment order is as under: "The case was selected for scrutiny to examine the mismatch in sales turnover reported in audit report and ITR. During the course of assessment proceedings the issue was examined and no discrepancy was noticed." (C) The dispute in this appeal pertains to an addition of Rs. 13,50,000/-. The assessee's claim of having received this amount as gifts from relatives was not accepted by the Assessing Officer and aforesaid amount of Rs. 13,50,000/- was added to the assessee's income. Relevant portion of the order of the Assessing Officer is reproduced below: "6. Fact relating to introduction of cash in Cash Book On examination of ledger accounts it has been noticed that a ledger account in the name of Smt. Guddo Devi, proprietor, Imprest account has been formed wherein total sum of Rs 23,50,000/- has been introduced in the cash book in cash by you and the same has been repaid during the year itself. 6A Confrontati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l amount is treated to be income of the assessee u/s 68 of the IT Act, 1961." (C.1) Aggrieved, the assessee filed appeal in the office of learned CIT(A). Vide aforesaid impugned appellate order dated 12/09/2019, the learned CIT(A) sustained the aforesaid addition of Rs. 13,50,000/-. The relevant portion of the order of learned CIT(A) from paragraphs (9.1) and (9.2) of his impugned order, is reproduced below: "(9.1) The written submissions filed were examined. The written submissions and additional evidences filed by the appellant were forwarded to AO vide letter dated 16.05.2018. The AO filed a remand report vide letter dated 14.01.2019 which is reproduced as under: As directed by the ibid letter, the assessee was requested vide this office dated 21.05.2018 to attend this office to examine the following:- (i) Complete name and address of the persons from whom you have received gifts during the F.Y. 2013-14 relevant to the A.Y. 2014-15. (ii) During the course of assessment proceedings, vide para 1 & para 2 of notice u/s 142(1) dated 28.11.2016, you were required to explain the nature and sources of depositing cash of Rs. 23,50,000/- by you with supporting evidence. But at t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... king adjournment on the ground that the assessee was in the process of preparing this appeal and that it would take some more time to complete the preparation of appeal since certain important documents were still awaited. After hearing learned Sr. Departmental Representative for Revenue ("Sr. D.R." for short), it was decided to dispose off this appeal as adequate opportunity has already been provided to the appellant assessee. It may be added here that on earlier occasions, hearings fixed in ITAT on 19/02/2020, 11/06/2020, 22/06/2021, 13/07/2021, 17/08/2021, 20/09/2021, 28/12/2021, 20/01/2022, 14/02/2022, 27/04/2022, 30/05/2022, 22/06/2022, 12/07/2022, 01/08/2022, 25/08/2022, 03/10/2022, 17/10/2022, 17/04/2023, 02/05/2023, 30/05/2023, 14/07/2023 were adjourned either from the request from assessee's side or because the assessee was not represented on the aforesaid dates of hearing. The request for adjournment made from the assessee's side was rejected as adequate opportunity has already been provided. (C.2) On perusal of the orders of the Assessing Officer and learned CIT(A), I find that they have not brought out the relevant facts in their respective orders. Even the amounts sep ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s to whom summons were issued. There is no mention of date of issue of summons, date of service of summons and date of compliance prescribed in the summons. Further, on perusal of the impugned order of learned CIT(A), there is no mention that contents of the remand report vide letter dated 14/01/2019 of the Assessing Officer were communicated to the appellant assessee. The learned CIT(A), thus used material adverse to the assessee (remand report of the Assessing Officer) without confronting assessee with the same and without providing reasonable opportunity to the assessee. This was in complete violation of principles of natural justice. In view of all these facts and circumstances, the learned Sr. D.R. for Revenue submitted that the impugned order dated 12/09/2019 of learned CIT(A) may be set aside and the Assessing Officer may be directed to pass fresh assessment order in accordance with law after providing reasonable opportunity to the assessee. (C.2.1) In view of the foregoing and in the specific facts and circumstances of the present case, the impugned order dated 12/09/2019 of learned CIT(A) is hereby set aside and the issue regarding aforesaid addition of Rs. 13,50,000/- is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g remand to the Assessing Officer by the learned CIT(A); also deserves to be considered. Therefore, this is a fit case in which the Additional/ Joint Commissioner of Income Tax should play his role by issuing direction(s) u/s 144A of the IT Act to the Assessing Officer, giving due consideration to all relevant facts and circumstances. Therefore, the Assessing Officer is directed to make reference to learned Addl. CIT/Joint CIT u/s 144A of the IT Act and seek suitable directions (on whether the materials on record of the Assessing Officer are sufficient to accept the assessee's claim; and if not, the lines on which further investigation should be made) after the Assessing Officer starts fresh proceedings for passing denovo order in pursuance of aforesaid directions contained in foregoing paragraph (2.1) of this order. Both the Assessing Officer as well as Addl. CIT/Joint CIT are directed to view the entire matter with a fresh outlook without getting influenced by earlier orders of the Assessing Officer and the learned CIT(A). (E) Both grounds of appeal are treated as disposed off in accordance with aforesaid directions. The appeal is partly allowed for statistical purposes. (Order ..... X X X X Extracts X X X X X X X X Extracts X X X X
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