Addition of Rs. 1 Crore based on Partner's Statement without Evidence: ITAT restores matter to CIT(A) [Read Order]
Despite the assessee's repeated non-cooperation and failure to appear, the ITAT gave them another chance to present their case, imposing a Rs. 5,000 cost to be deposited with the Prime Minister's Relief Fund
![Addition of Rs. 1 Crore based on Partners Statement without Evidence: ITAT restores matter to CIT(A) [Read Order]](https://www.taxscan.in/wp-content/uploads/2025/02/ITAT-ITAT-Ahmedabad-Income-tax-Income-tax-addition-TAXSCAN-1.jpg "Addition of Rs. 1 Crore based on Partners Statement without Evidence: ITAT restores matter to CIT(A) [Read Order]")
The Ahmedabad Bench of Income Tax Appellate Tribunal (ITAT) restored the matter to the Commissioner of Income Tax(Appeals)[CIT(A)] for fresh consideration, observing that the addition of Rs. 1 crore to the firm’s income was based solely on the statement of a partner, without supporting evidence. Ramdev Buildcon,appellant-assessee,a partnership firm that filed its return of income...
The Ahmedabad Bench of Income Tax Appellate Tribunal (ITAT) restored the matter to the Commissioner of Income Tax(Appeals)[CIT(A)] for fresh consideration, observing that the addition of Rs. 1 crore to the firm’s income was based solely on the statement of a partner, without supporting evidence.
Ramdev Buildcon,appellant-assessee,a partnership firm that filed its return of income showing Rs. 14,61,569/-. During a survey at the firm’s premises on 24.09.2016, certain documents were found, and the statement of partner Shri Santvan K. Rathod was recorded. In his statement, he admitted the firm had earned an additional Rs. 1 crore in profit, which was not included in the return. As a result, the Assessing Officer (AO) added Rs. 1 crore to the income of the firm.
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The assessee appealed to the CIT(A), but no one appeared despite multiple hearing notices. As a result, the CIT(A) upheld the additions made by the AO.The assessee then appealed before the tribunal.
The two member bench comprising Dr.BRR Kumar (Vice President) and Siddhartha Nautiyal (Judicial Member) noted that the assessee had consistently failed to cooperate or appear before the Revenue authorities. However, due to the size of the additions and in the interest of justice, the matter was sent back to the CIT(A) for fresh consideration, giving the assessee a fair chance to be heard.
Read More: ITAT directs CIT(A) to Conduct Fresh Hearing, Imposes ₹5,000 Cost for Non-Attendance in Appeal
Given the ongoing non-cooperation, the appellate tribunal decided to impose a cost of Rs. 5,000/- on the assessee, to be deposited with the Prime Minister's Relief Fund.
In short,the appeal filed by the assessee was allowed for statistical purposes.
To Read the full text of the Order CLICK HERE
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