ITAT rescinds Ex-Parte Addition of Rs.36L u/s 69A, directs Explanation of Disputed Financial Records [Read Order]
The ITAT adopted an Assessee-oriented approach while deciding the present case
ITAT Quashes Rs.36L Addition, Seeks Clarity on Financial Records
ITAT Quashes Rs.36L Addition, Seeks Clarity on Financial Records
The Ahmedabad Bench of the Income Tax Appellate Tribunal ( ITAT ) recently directed denovo Assessment of an Assessee’s matter observing that the Assessing Officer (AO) had conducted ex-parte addition of Rs.36,01,500/- under Section 69A of the Income Tax Act, 1961 after duly assessing all financial records adducible by the Assessee.
The Decision was given by the Ahmedabad ITAT while hearing an Income Tax Appeal filed by the Appellant-Assessee Ajjahar Ghaniwala against the order dated 30.11.2023 passed by the Commissioner of Income Taxes (Appeals) (CIT(A)) at the National Faceless Appeal Centre under Section 250 of the Income Tax Act. Against the financials of the Assessee for the Assessment Year (A.Y.) 2017-18.
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The facts follow an Assessment Order passed on 16.12.2019 determining addition of Rs. 36,01,500/- under Section 69A of the Act. It was observed by the Appellate Authority that the Assessee had failed to comply with the multiple notices issued by the AO which prompted the AO to pass an ex-parte Order without considering the submissions intended to be filed by the Assessee.
Shri Tej Shah, Authorized Representative of the Assessee submitted before the ITAT that given an opportunity, all the requisite bills and invoices along with the source of disputed cash deposits shall be duly explained to the concerned Assessing Officer.
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Senior Departmental Representative, C. Dharani Nath, representing the Income Tax Department attested to the plea of the Assessee seeking renewed opportunity for providing due explanation.
The Ahmedabad Bench of the Income Tax Appellate Tribunal constituted by Dr. BRR Kumar, Vice President and Suchitra Kamble, Judicial Member considered the facts and submissions raised by either parties and proceeded to direct the Jurisdictional Assessing Officer to initiate assessment proceedings de-novo and pass an Order on the basis of such Assessment in accordance with the provisions of the Income Tax Act, 1961.
To Read the full text of the Order CLICK HERE
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