Misuse of Bank Account proved by Assessee through FIR and Charge sheet, ITAT directs Re-adjudication [Read Order]

 The Allahabad bench of Income Tax Appellate Tribunal ( ITAT ) directed the appeal of assesse shri Roop Narayan Pandey for re-adjudication on the basis of proof of misuse of bank account of assesse.

In instant case an application was filed by the assesse shri Roop Narayan Pandey, seeking recalling of appeal which was dismissed exparte hearing. In this case Assessing Officer issued notice under section 148 of income tax act 1961, following the non-response of assessee, assessing officer(AO)reopened the assessment based on transactions statement and CIB information regarding the transactions carried out by assessee in ‘Multi Commodity Exchange’ (MCX) as well as cash deposits of Rs.42,29,985/- in the bank accounts of the assessee and estimated the net income at 8%. Later on the CIT (A)restricted it by applying at 1%.Thus assesse filed appeal before the Income Tax Appellate Tribunal

Shri Ankur Agarwal, advocate on behalf of assesseecontented thatassesse’s bank account had been misused by Shri. Surya Prakash Verma andproduced the copies of the charge-sheet filed by the police against Shri. Surya Prakash Verma, under sections 419, 420, 467, 468 and 471 IPC and he had been carrying the transactions in the commodity exchange through the bank account of the assesse. AR also contended that the assesse didn’t producethe records deliberately it was because of the covid 19 pandemic that he couldn’t.

On the other hand, DR Shri. A.K. Singh on behalf of the department contented that production of new evidence by the assesse shouldn’t be allowed after passing the orderand assesse had neither raised the issue before AO nor produced the supporting evidence before CIT(A). similarly, before the Tribunal also theassessee failed to produce evidence in support of the claim and contented not to allow the application for recalling and re-adjudication.

The single bench tribunal of Allahabad comprising Shri Vijay Pal Rao held that contention of CIT(A) was right but as the facts, brought to the notice of the Tribunal were relevant and very crucial for deciding the issue. Accordingly, the impugned order was recalled to the extent of deciding certain grounds mentioned by the assesse. The appeal of the assessee was directed to be re-fixed for fresh hearing and adjudication, and application was allowed by the tribunal.

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