Deletion of Unexplained Income without a Remand Report is Invalid: ITAT quashes Order [Read Order]

The Ahmedabad bench of  Income Tax Appellate Tribunal ( ITAT) held that deletion of unexplained income without calling for a remand report is against the provision of Rule 64A of Income Tax Rules 1962.

Shri Bhavesh , the Respondent assessee is an individual who was engaged in trading of cotton bales. On verification of details available in the office of Assessing Officer, it was found that the assessee had deposited cash amount of Rs. 2,09,58,440/- in his bank accounts, which was not reported in the original Return of Income.

The assessee filed an appeal before Commissioner of Income Tax(Appeals) and the commissioner deleted the addition made by the Assessing officer without calling for any remand report.

During the assessment proceedings, the assessee once appeared before the Assessing Officer and not furnished any details, but only a letter explaining sufficient cash on hand available in the cash books were deposited in the bank accounts. The Commissioner without calling for a Remand Report from the Assessing Officer deleted the additions which is against the provisions of law and Rule 46A of the Income Tax Rules 1962.

The two members bench comprising of T.R. Senthil Kumar (Judicial) and Annapurna Gupta(Accountant ), observed that in the Interest of Natural Justice, the matter should be remanded back to the file of the Assessing Officer for proper verification.

Due to the lack of evidence or Paper Book the ITAT remand the matter back to the file of the Assessing Officer to verify the submissions of the assessee with proper records, bank statements and any other relevant evidences and allowed the Appeals.

To Read the full text of the Order CLICK HERE

Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates