Re-assessment Order passed without Considering Submissions of Assessee : ITAT remands matter to AO for Fresh Adjudication [Read Order]

The Ahmedabad bench of the Income Tax Appellate Tribunal (ITAT) has recently while allowing the appeal filed by the assessee remanded assessee’s matter to the assessing officer for fresh adjudication and observed that reassessment order passed by the authority was without considering the submission of assessee.

P.D. Shah appeared for the assessee. B.P. Makwana appeared for the revenue.

Assessee Rupa Mahesh Gandhi is an individual. Assessee’s  case was reopened for scrutiny on the information that she had invested in Bombay Stock Exchange amounting to Rs.25,21,525/- and made credit card payment of Rs.3,45,000/- in her bank account with City Bank Ltd.

The assessee was served with a notice under Section 148 of the Income Tax Act, 1961. In response to which she filed the return. Thereafter, in response to the notices issued to her to explain the source of investment in Bombay Stock Exchange and the source of payment of credit card, the assessee filed due reply submitting that she had nothing to do with the same and it was her husband who was looking into the entire matter and an affidavit of her husband was also filed in this regard.

The Assessing Officer, thereafter, made addition of the investment of the assessee in Bombay Stock Exchange and the credit card payment treating the same as unexplained investment and expenses of the assessee.

The matter was carried in appeal before the learned CIT(A) who upheld the order of the Assessing Officer. Aggrieved by the order of the CIT(A), the assessee has filed the present appeal before the tribunal.

Counsel for the assessee submitted that both the authorities below had ignored the submissions filed by the assessee explaining the source of investment and expenses and had given incorrect findings that no details had been submitted by the assessee.

Counsel for the revenue supported the decision of lower authorities.

After analysing the submissions of the both parties the tribunal observed that orders passed by the authorities below had ignored the submissions of the assessee.

Therefore the  member Annapurna Gupta, (Accountant Member) restored the matter  back to the file of the Assessing Officer to be decided afresh after giving due opportunity of hearing to the assessee and considering all the contentions and explanation.

To Read the full text of the Order CLICK HERE

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