The Mumbai bench of the Income Tax Appellate Tribunal (ITAT) has recently held that the Assessing Officer cannot reject a claim made by the assessee without any basis. While allowing an appeal filed by the assessee, an individual, the Tribunal added that such an assessment is not sustainable under the Law.
While completing the assessment proceedings against the assessee, the Assessing Officer treated a particular loan transaction as unexplained cash credit under section 68 of the Income Tax Act, 1961. The assessee contended that the rejection was done without giving them an opportunity of being heard. It was also contended that the books of accounts have been rejected and the cash credit was added to the income of the assessee without giving an opportunity of being heard to the assessee in accordance with the law.
On the first appeal, the Commissioner of Income Tax (Appeal) confirmed the above view. In order to secure relief, the assessee approached the Tribunal.
While deleting the order for statistical purpose, the Tribunal noted that the assessment order has been passed u/s 144 of the Act.
“No opportunity of being heard was given to the assessee. The books of accounts have been rejected and the cash credit was added to the income of the assessee without giving an opportunity of being heard to the assessee in accordance with the law. The assessee has confirmed the loan which lies on pages 1 to 9 of the paper book. The confirmation is on the record. The said documents were produced before the CIT(A) as well as AO also. The authority nowhere considered these documents. Rejecting the contentions without any reason nowhere seems justifiable. The explanation and confirmation given by assessee were nowhere considered. The rejecting the claim of the assessee without any basis nowhere required to be sustainable in the eyes of law, therefore, we set aside the finding of the CIT(A) on this issue and restore the issue before the Assessing Officer to decide the issue afresh by giving an opportunity of being heard to the assessee in accordance with law,” the Tribunal said.
The Mumbai bench of the Income Tax Appellate Tribunal (ITAT) has recently held that the Assessing Officer cannot reject a claim made by the assessee without any basis. While allowing an appeal filed by the assessee, an individual, the Tribunal added that such an assessment is not sustainable under the Law.
While completing the assessment proceedings against the assessee, the Assessing Officer treated a particular loan transaction as unexplained cash credit under section 68 of the Income Tax Act, 1961. The assessee contended that the rejection was done without giving them an opportunity of being heard. It was also contended that the books of accounts have been rejected and the cash credit was added to the income of the assessee without giving an opportunity of being heard to the assessee in accordance with the law.
On the first appeal, the Commissioner of Income Tax (Appeal) confirmed the above view. In order to secure relief, the assessee approached the Tribunal.
While deleting the order for statistical purpose, the Tribunal noted that the assessment order has been passed u/s 144 of the Act.
“No opportunity of being heard was given to the assessee. The books of accounts have been rejected and the cash credit was added to the income of the assessee without giving an opportunity of being heard to the assessee in accordance with the law. The assessee has confirmed the loan which lies on pages 1 to 9 of the paper book. The confirmation is on the record. The said documents were produced before the CIT(A) as well as AO also. The authority nowhere considered these documents. Rejecting the contentions without any reason nowhere seems justifiable. The explanation and confirmation given by assessee were nowhere considered. The rejecting the claim of the assessee without any basis nowhere required to be sustainable in the eyes of law, therefore, we set aside the finding of the CIT(A) on this issue and restore the issue before the AO to decide the issue afresh by giving an opportunity of being heard to the assessee in accordance with law,” the Tribunal said.
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