The Assessing Officer, on remand by the writ court to consider the matter afresh, is not permitted to reconsider the grounds of addition which is already negated by the appellate forums, ruled the Income Tax Appellate Tribunal (ITAT), Delhi bench.
During a survey conducted by the Revenue Department, the assessee surrendered an amount of Rs. 1 crore. The surrender amount also consisted of investment in furniture and equipment in the showroom. This statement about the investment was later retracted by the assessee. During the course of the assessment proceedings, the AO noted that such investment was not declared in the return which was surrendered at the time of the survey, made the addition under section 68 of the Income Tax Act.
On the first appeal, the CIT(Appeals) confirmed the original order. The Tribunal deleted the addition holding that no material was found during the course of the survey that the assessee has made any investment outside the books for the finishing of the showroom and no inquiry was done by the AO.
The matter further travelled to the High Court wherein the Court remanded the issue to the file of the AO which on set aside, again made the same addition on similar ground.
Again aggrieved by the order, the assessee approached the Tribunal.
After hearing both the sides, the Tribunal held that once, the basis of surrender and letter written by the AO stands negated by the Tribunal and the High Court has directed the AO to consider the issue of purported investment afresh, then there is no basis for making such addition on the same reasoning. If the assessee has denied making any such investment and had shown certain investment in the books, then onus shifts upon the Assessing Officer to bring on record either by way of inquiry or any material which has been found during the course of survey that there was certain investment in fixture and furniture during the relevant Assessment Years.
Subscribe Taxscan Premium to view the Judgment
