The Ahmedabad Bench of Income Tax Appellate Tribunal (ITAT) remanded the matter to the Commissioner of Income Tax (Appeal) [CIT(A)] for review of the addition of unsecured loans and non-admittance of evidence.
Amitkumar Chandulal Patel,appellant-assessee,sole owner and proprietor,challenged the order dated 11.06.2024 passed by the CIT(A), National Faceless Appeal Centre (NFAC), under Section 250 of the Act, for Assessment Year (AY) 2020-21.
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The assessee raised several grounds, alleging that the CIT(A) and Assessing Officer (AO)erred in adding Rs. 18,305,000 under Section 68, and Rs. 739,871 on a protective basis as unexplained investment, using incorrect circle rate calculations. The assessee also contested the charging of interest under Sections 234B and 234C and the failure to admit additional evidence.
The assessee contended that it had submitted several documents during the assessment proceedings but could not provide the bank statements to prove genuineness. He later submitted the bank statement to the tribunal as additional evidence and requested it be considered. He also mentioned that the Permanent Account Number (PAN) numbers of the lenders were available, allowing the department to verify the Income Tax Return (ITR).
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The two member bench comprising Dr. BRR Kumar (Vice-President) and Siddhartha Nautiyal (Judicial Member)reviewed the CIT(A)’s order, noting that the assessee was given a chance to submit details but failed to do so, resulting in the dismissal of the appeal.It also found that the assessment was completed due to the assessee’s lack of response to the show-cause notice.
Since the issue involved unsecured loans, the tribunal remanded the case to the CIT(A) to review the evidence provided by the assessee and examine it under Rule 46A of the Income Tax Rules, 1962, and pass an appropriate order.
In short,the appeal filed by the assessee was allowed for statistical purposes.
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