The Tax Publishers2021 TaxPub(DT) 0150 (Hyd-Trib)

INCOME TAX ACT, 1961

Section 69

Where neither the assessee nor its Authorised Representative (AR) appeared before CIT(A) during the proceedings before him, though several opportunities were provided, therefore, argument advanced that proper opportunity of being heard was not provided to the assessee by CIT(A), did not have any merit, further, considering the submissions of assessee that additional evidence was required to be produced before Revenue Authorities, matter was remanded back to AO for fresh consideration.

Income from undisclosed sources - Addition under section 69 - Unexplained loans -

Assessee was engaged in the business of providing recreation to its members, filed its return of income admitting loss. Subsequently, the case was selected for scrutiny under CASS. Thereafter and notices under section 143(2) and 142(1) were issued to assessee. Thereafter, AO completed assessment under section 143(3) by determining the total loss wherein an amount was disallowed towards 'unexplained cash deposits' and 'unexplained loans'. Held: Neither assessee nor its Authorised Representative appeared before CIT(A) during proceedings before him, though several opportunities were provided. Therefore, argument advanced that proper opportunity of being heard was not provided to assessee by CIT(A), did not have any merit. However, CIT(A) had remitted back the issue with respect to unsecured creditors to AO for verification which was erroneous because CIT(A) did not have such powers under the Act. Further, considering the submissions of assessee that additional evidence was required to be produced before Revenue Authorities, matter was remanded back to AO for fresh consideration.

REFERRED :

FAVOUR : Matter remanded.

A.Y. : 2015-16



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