Non-Consideration of Key Documents by AO and CIT(A): ITAT Restores Matter to AO for Fresh Adjudication [Read Order]
The tribunal directed the AO to provide a fair opportunity to the assessee and decide the matter afresh after examining all relevant submissions and evidence
![Non-Consideration of Key Documents by AO and CIT(A): ITAT Restores Matter to AO for Fresh Adjudication [Read Order]](https://www.taxscan.in/wp-content/uploads/2025/05/Documents-CITA-taxscan.jpg "Non-Consideration of Key Documents by AO and CIT(A): ITAT Restores Matter to AO for Fresh Adjudication [Read Order]")
The Cochin Bench of Income Tax Appellate Tribunal(ITAT)restored the matter to the Assessing Officer for fresh adjudication after finding that key documents submitted by the assessee, including audited accounts, cash book, day book, expense records, and bank statements, were not considered either by the AO or the Commissioner of Income Tax(Appeals)[CIT(A)]. Manarkattu Theatres Pvt....
The Cochin Bench of Income Tax Appellate Tribunal(ITAT)restored the matter to the Assessing Officer for fresh adjudication after finding that key documents submitted by the assessee, including audited accounts, cash book, day book, expense records, and bank statements, were not considered either by the AO or the Commissioner of Income Tax(Appeals)[CIT(A)].
Manarkattu Theatres Pvt. Ltd., appellant-assessee,operated two cinema theatres. For the assessment year 2018-2019, it filed its income tax return after receiving a notice under section 148, declaring income of Rs. 12,73,860. The AO completed the assessment on 24.03.2023 under sections 147 and 144B, determining income at Rs. 1,93,97,120.
The AOr made additions of Rs. 2,19,643 for lower net profit, Rs. 6,88,911 disallowed under section 40A(3), and Rs. 1,72,14,706 under section 69C, totaling Rs. 1,81,23,260.
The assessee appealed to the CIT(A), who confirmed the additions, noting that the assessee failed to provide any evidence or submissions to support its claims. As a result, the additions were sustained.
The assessee then filed the present appeal before the tribunal.
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The assessee counsel submitted a brief written argument supporting the appeal. The counsel said the AO and CIT(A) ignored important documents like the cash book, day book, expense records, and bank statements. The assessee had given detailed written replies during the assessment and appeal, but these were not considered. The counsel also provided proof of the submissions made.
The Departmental Representative(DR) supported the AO and CIT(A) orders.
The two member bench comprising George George K(Vice President) and Inturi Rama Rao(Accountant Member) heard both sides and reviewed the records. It found that the assessee had submitted detailed documents like audited accounts, expense ledgers, and bank statements during assessment and appeal. However, these were not considered by the AO or CIT(A).
The appellate tribunal sent the case back to the AO for a fresh decision. The AO was directed to give the assessee a fair chance to be heard and to consider all submissions and evidence before deciding.
In short,the appeal was allowed for statistical purposes.
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