Addition u/s 69 can't make without considering Corroborative Evidence, an opportunity to hear must be given: ITAT [Read Order]

The Amritsar bench of Income Tax Appellate Tribunal (ITAT) consisting of Dr M L Meena, AM and Shri Anikesh Banerjee, JM has held that addition u/s 69 of the Income Tax Act 1961 can’t make without considering corroborative evidence and set aside the order of addition and directed to de novo adjudication.

The appellant Harpreet Singh Grover appealed against the order passed by the Commissioner of Income Tax u/s 250(6) of the IT Act 1961. The AO added back the cash deposit of Rs.47,91,000/- of the assessee, deposited in the State Bank of Patiala Goniana bearing a/c no. 65035132671 which was added back u/s 69 of the Act with the assessee’s total income. CIT(A) on appeal considered the submission of the assessee and reduced the addition of amount to Rs.28,95,000/- out of the total cash deposit amount to Rs.47,91,000/-.

The appellant contended that the source of the cash deposit was the withdrawal of an amount of Rs. 35,00,000/- through self cheque no. 202028 of ICICI Bank and sale of the agricultural land amount to Rs. 57,90,000/-, which was of 50% share with the mother of the assessee.

The Tribunal observed that the assessment was done u/s 144 of the Act and directed to give a reasonable opportunity to the assessee for further consideration and submission of the documents.

The Coram set aside the impugned order and directed to restore the matter before the AO for de novo adjudication by considering the assessee’s evidence for substantiation. The appeal filed by the assessee was allowed for statistical purposes.

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