INCOME TAX ACT, 1961

Section 143(3)

Assessment - Substantive assessment - Non consideration of addition of unexplained receipt on protective basis - Validity

CIT (Appeals) deleted the addition made by AO on account of unexplained receipt on protective basis without appreciating the facts and evidences brought into light by AO during the assessment proceedings. CIT (Appeals) while deciding the appeals relating to protective assessments had concluded that additions should be made in the substantive proceedings initiated in case of M/s. K Industries Pvt. Ltd. and F International Ltd. However, in appeals related to substantive proceedings CIT (Appeals) had not taken into consideration of the above fact in respect of appeals relating to protective assessments. Held: On consideration of submission of AO which could not be controverted by concerned assessee, that the divergent view had been taken by the appellate authorities below, in the interest of justice and fair play the present impugned orders were required to be set aside with direction to CIT (Appeals) to decide the appeals de novo in the light of aforesaid facts. Accordingly, the issue was remitted back to the file of CIT (Appeals) for deciding the same afresh as per law with direction that CIT (Appeals) would decide the appeals relating to substantive proceedings at first and thereafter the appeals relating to protective assessments.

REFERRED :

FAVOUR : Matter remanded

A.Y. : 2008-09 to 2010-11, 2012-13

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