Additions u/s 69A Set Aside: ITAT Directs Fresh Assessment Allowing Taxpayer to File Additional Evidence [Read Order]
The tribunal set aside the appellate order passed by the CIT(A) and remanded the matter to the AO with instructions to pass a fresh order on merits after providing the assessee one final opportunity to present his case and evidence
![Additions u/s 69A Set Aside: ITAT Directs Fresh Assessment Allowing Taxpayer to File Additional Evidence [Read Order]](https://www.taxscan.in/wp-content/uploads/2025/04/Additions-section-69A-ITAT-Fresh-Assessment-Taxpayer-to-File-Additional-Evidence-taxscan.jpg "Additions u/s 69A Set Aside: ITAT Directs Fresh Assessment Allowing Taxpayer to File Additional Evidence [Read Order]")
The Ahmedabad Bench of the Income Tax Appellate Tribunal (ITAT) has set aside the additions made under Section 69A of the Income Tax Act, 1961, directing the Assessing Officer (AO) to conduct a fresh assessment after allowing the assessee an opportunity to submit additional evidence. Tosifbhai Tajdin Halani, (assessee) had filed a return of income declaring Rs. 39,00,700 for the...
The Ahmedabad Bench of the Income Tax Appellate Tribunal (ITAT) has set aside the additions made under Section 69A of the Income Tax Act, 1961, directing the Assessing Officer (AO) to conduct a fresh assessment after allowing the assessee an opportunity to submit additional evidence.
Tosifbhai Tajdin Halani, (assessee) had filed a return of income declaring Rs. 39,00,700 for the Assessment Year (AY) 2017–18. The AO made additions under various heads, including unexplained advances of Rs. 57,55,000, cash gifts of Rs. 9,00,000 from father-in-law, unexplained opening cash balance of Rs. 10,45,585, short-term capital gains, and household expenses under Section 69C.
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The Assessing Officer (AO) assessed the total income of the assessee at Rs. 1,35,80,660. Aggrieved by the AO’s order, the assessee filed an appeal before the Commissioner of Income Tax (appeals)[CIT(A).
The CIT(A) upheld the major additions citing the assessee’s failure to substantiate claims with adequate evidence. The CIT(A) observed that while written submissions were made, the documentary backing was either insufficient or not accepted during the appellate proceedings.
Aggrieved by the order of CIT(A), the assessee filed an appeal before the ITAT, raising multiple grounds, including violation of principles of natural justice and failure to consider documents submitted during the assessment.
The assessee contended that he was denied a reasonable opportunity to furnish additional supporting evidence, including proof of the cancellation of a banakhat (agreement to sell) and bank withdrawals substantiating cash availability.
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The two-member bench comprising Dr. B.R.R. Kumar (Vice President) and T.R. Senthil Kumar ( Judicial Member ) observed that the assessee had sought one more opportunity to present the necessary details.
The tribunal set aside the appellate order passed by the CIT(A) and remanded the matter to the AO with instructions to pass a fresh order on merits after providing the assessee one final opportunity to present his case and evidence.
The Tribunal directed to ensure fair opportunity must be granted and also directed to permit the admission of additional evidence. The appeal of the assessee was thus allowed for statistical purposes.
To Read the full text of the Order CLICK HERE
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