The Income Tax Appellate Tribunal (ITAT) Delhi bench while observing the no representation before the lower authorities by the assessee directed readjudication in respect of Sale Consideration deposited in the bank account .
Assessee, Sunder Lal assessment was reopened u/s 147 of the Income-tax Act, 1961 on the ground that the assessee had deposited cash in the bank account. During the course of assessment proceedings, the AO sought explanation from the assessee, but there was no representation on behalf of the assessee. Therefore, the entire amount deposited in the bank account and other receipts were treated as income of the assessee.
Aggrieved by the order assesee filed an appeal before the CIT(A), who upheld the order of assessing officer. Thus the assessee filed a second appeal before the tribunal.
Counsel for assessee submitted that assessee was not provided adequate opportunity of hearing. All evidence is submitted before the lower authorities.
Counsel for revenue submitted that the assessee was provided adequate opportunity before the lower authorities, but, the assessee could not support his claim regarding source of cash deposits.
Tribunal During the appeal proceedings observed that before the assessing authority, there was no effective representation on behalf of the assessee. Further During the appeal proceedings assessee submitted that his father had sold a piece of land and the money in question was out of the sale consideration which was deposited in the bank account of the assessee.Thus the bench suggested to CIT(A) for verifying the correctness of the claim of the assessee.
After considering the facts submitted by both parties, the single member bench of Kul Bharat (Judicial Member) observed that the assessee was not present before the assessing officer during the assessment proceedings to substantiate his claim. However the assessee submitted documents regarding the claim before the CIT(A).
Therefore the bench directed readjudication in respect of Sale Consideration deposit in Bank Account after providing adequate opportunity to assesse.
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