The Delhi bench of Income Tax Appellate Tribunal has held that lower authorities not properly appreciated or verified documents adduced by assessee and restores matter to CIT(A) for fresh consideration.
The appellant, Harish Aswal, Prop. of M/s. Metal Wood Creations, was engaged in the business of manufacturing of Iron goods and declared gross turnover of Rs.1,50,91,281/-, gross profit of Rs.15,98,984/- and net profit of Rs.94,996/-. He filed return, declaring taxable income of Rs.64,996/- which was processed u/s 143(1) of the Income Tax Act and later notice under section 148 of the Act was issued.
The Assessing Officer had shown in the assessment order the turnover of the appellate was Rs.3,41,02,583/- and held that the appellate had suppressed its turnover by an amount of Rs.1,14,08,628/- and treated the same as unaccounted expenditure under section 69C of the Act and added that to the taxable income of the appellate. Aggrieved, assessee preferred appeal before CIT (A) who dismissed the appeal hence, filed appeal before ITAT.
The counsel for the appellate submitted that the impugned amount is nothing but re-deposit of the amount which was withdrawn by the assessee from the bank account of Centurian Bank Account and therefore, no addition is called for u/s 69C of the Act.
The Coram of Mr. Chandra Mohan Garg, Judicial Member and Mr. Pradip Kumar Kedia, Accountant Member observed that neither from the assessment order nor from the order of CIT(A), it is discernible that the ledger account or bank statement of the assessee with Centurian Bank have been properly appreciated and verified by the authorities below.
The Tribunal has restored the matter to the file of CIT (A) for fresh consideration and adjudication.
Adv. Shantanu Jain and Mr. Gurjeet Singh, CA appeared on behalf of appellant and respondent respectively.
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