The Ahmedabad Bench of Income Tax Appellate Tribunal (ITAT) has directed re-adjudication taking cognizance of evidence as the Commissioner of Income Tax Appeals (CIT(A)) passed order not on merits.
The assessee, Gunvantbhai Chhitubhai Nayak had not furnished return of income for A.Y. 2008-09 and from the information gathered by the Revenue it appeared that the assessee had deposited cash in his bank account.
The case was reopened under Section 147 of the Income Tax Act, 1961 and statutory notices were issued but was not able to furnish any documentary evidence and therefore, the Assessing Officer made an addition. The assessment order is under Section 144 read with Section 147 of the Income Tax Act.
Malav Shah, on behalf of the assessee submitted that the matter should be remanded back to the file of the CIT(A) for proper adjudication of the evidence and the reopen of the assessee for giving opportunity of hearing and thereafter pass the order.
B. P. Makwana, on behalf of the revenue, relied upon the assessment order and the order of the CIT(A).
A Single Bench of Suchitra Kamble (Judicial Member) allowed the appeal holding that It was pertinent to note that the CIT(A) had not passed the order on merits of the issue contested by the assessee.
Therefore, in the interest of justice it was appropriate to remand back this matter to the file of the CIT(A) for proper adjudication of the issues contested therein and after taking cognizance of the evidence filed by the assessee decide the case on merit.
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