Urvashiben Sunilbhai Amin Vs ITO (ITAT Ahmedabad)
Assessee, proprietor of M/s New SK Engineering Works, filed ROI declaring ₹4,90,538. Limited Scrutiny was triggered for mismatch in 26AS, turnover mismatch & substantial capital increase. In assessment u/s 143(3), AO repeatedly sought capital accounts & evidence of capital introduction. Assessee stated no capital was introduced in FY 2014-15 but failed to furnish capital accounts. AO analysed ITRs of AYs 2013-14 to 2015-16 & reconstructed capital, determining that disclosed capital of ₹1,24,15,536 as on 31.03.2015 exceeded explained capital by ₹70,48,949. AO added this amount u/s 68.
Before CIT(A), Assessee sought adjournment but failed to file any evidence despite notices dated 12.05.2023 & 08.06.2023. CIT(A), finding zero compliance & no material, upheld addition of ₹70,48,949.
In appeal before Tribunal, Assessee explained delay of 611 days due to non-responsive previous representative & lack of familiarity with e-communication. Delay condoned. AR submitted Assessee now has complete evidence—books, capital accounts, bank statements—and requested one more opportunity.
ITAT observed that addition was made solely for want of evidence & CIT(A) had no material to adjudicate. Considering Assessee’s undertaking & DR’s no-objection, Tribunal restored matter to CIT(A) for fresh adjudication but imposed a condition: Assessee must deposit ₹10,000 to Prime Minister’s Relief Fund within 30 days & furnish proof. CIT(A) directed to decide afresh after granting adequate opportunity.
