The Ahmedabad Bench of Income Tax Appellate Tribunal ( ITAT ) remanded the matter to the Commissioner of Income Tax (Appeals) [CIT(A)] directing a fair hearing in the matter concerning an addition of Rs.49.5 lakh under Section 69A of Income Tax Act,1961, due to the denial of natural justice.
Anjaiya Jewellery Pvt,appellant-assessee, filed an appeal challenging the order of the CIT(A), dated 30/03/2024, for the assessment year 2017-18. The appeal primarily raised concerns over procedural lapses and substantive additions made during the assessment.
The assessee argued that the CIT(A) denied them a fair opportunity to present their case by rejecting a request for adjournment and failing to consider additional evidence prepared for submission. They contested the addition of Rs.49,50,000 under Section 69A, asserting that the amount represented cash deposits from business sales, not unexplained income.
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They further alleged that the assessing officer (AO) relied on material evidence not shared with them, thus violating the principles of natural justice and denying them the opportunity to rebut the findings.
The CIT(A), in their order, upheld the assessment on the grounds that the assessee had not furnished written submissions or reliable evidence during the appellate proceedings, despite being granted sufficient time and opportunity. The CIT(A) presumed that the assessee had no further arguments to support its claims, leading to the dismissal of the appeal.
A single member bench comprising Dr. BRR Kumar(Vice President) upon review, found merit in the assessee’s contention, particularly regarding the denial of an adjournment and the opportunity to submit additional evidence. It directed the CIT(A) to reassess the matter after granting the assessee a fair hearing.
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The tribunal highlighted that all submissions and evidence provided by the assessee should be considered during the reassessment.
Ultimately,the appeal filed by the assessee was allowed for statistical purposes.
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