The NewDelhi bench of the Income Tax Appellate Tribunal (ITAT) directed re-adjudication to the assessing officer for an addition made under section 69A of the Income Tax Act,1961 read with section 115BBE of the Income Tax Act due to non-filing of the return of income (ROI).
Kishan Singh & Associates, the appellant assessee was a partnership firm and not filed its return of income during the demonetization period. The assessing officer made an addition to it and the Commissioner of Income Tax (Appeals) confirmed the addition made by the assessing officer.
Thus the assessee appealed against the order passed by the Commissioner for confirming the addition made by the assessing officer under section 69A of the Income Tax Act.
Vijay Kumar Jindal, the counsel for the assessee contended that the assessee’s firm had already been dissolved and another person had been holding the bank account in which the impugned transaction had taken place.
It was also submitted that the person holding the bank account duly disclosed the bank account to the Revenue authorities in her ‘Income-tax Return’ and the impugned assessment order was ex facie illegal.
Om Prakash, the counsel for the department strongly opposed the contentions made by the assessee and supported the decisions made by the lower authorities.
It was also submitted that the addition made by the assessing officer under section 69A of the Income Tax Act read with section 115BBE of the Income Tax Act was as per the law and is not liable to be deleted.
A single-member bench comprising Kul Bharat(Judicial) held that the impugned assessment order had been framed against the non-existent entity and directed the assessing officer to delete the addition made by him while allowing the appeal filed by the assessee.
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