'Not All Appellate Orders are Erroneous': ITAT asks Dept to be Careful in Filing Appeals [Read Order]

The Income Tax Appellate Tribunal (ITAT), Cuttack bench comprising Shri George Mathan, Judicial Member and Shri Arun Khodpia, Accountant Member has advised the income tax department to be careful in filing the appeals against the orders of the appellate authorities as observed that not all appellate orders are erroneous.

The assessee, Mr. Seraj Yusha has disclosed income far an excess of what has been assessed by the AO in his assessment and the assessee has not filed his return but has only filed computation of income before the ld. CIT(A). The deletion of addition made by the AO of Rs.7.15 crores is clearly on the basis of evidence from the Axis Bank itself and no fault in regard to the same can be pointed out. The CIT(A) after examining the evidence has deleted the above addition as made by the AO. The revenue has approached the Tribunal against the order.

A division bench of the Tribunal observed that “what needs to be understood is if the revenue’s appeal is to be accepted then the issue gets restored back to the AO for re-examination in respect of addition representing Rs.7.15 crores. This would mean the setting aside the order of the ld. CIT(A). If that is to happen, the additional income offered by the assessee in the form of computation of income filed before the ld. CIT(A) would stand deleted. The issue would before the ld. AO only in respect of addition made by the AO in respect of Rs.7.15 crores. The bank itself has given confirmation that there are wrong entries and credits in the Axis Bank account as closure of fixed deposits and other deposits from the assessee’s own funds. This addition would also go.”

“This being so, it is brought out in the order only to bring to the attention of the revenue that the revenue should also be careful when filing the appeals against the order of the appellate authorities. Not all orders of the appellate authorities are erroneous; a little care in filing these appeals would go a long way. As we do not find any error in the order of the ld. CIT(A) in the present appeal, the findings recorded by the ld. CIT(A) on this issue are hereby confirmed,” the Tribunal observed.

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