Shivendra Singh Chauhan Vs ACIT (ITAT Agra)
Books Not Produced Earlier—145(3) Rejection, 68 & 41(1) Additions—All Restored for Fresh Verification
Assessee filed return declaring Rs.30,47,250. During scrutiny, despite repeated opportunities, Assessee did not produce books of account. AO invoked s.145(3), rejected book results & estimated net profit @ 8% of turnover. AO further taxed Rs.6,51,295 interest on FDs & SB as income from other sources instead of business income. Increase in sundry creditors of Rs.1,68,95,592 was treated as unexplained liability u/s 68, & Rs.1,08,13,700 was added u/s 41(1) as cessation of liability. CIT(A)/NFAC upheld all additions.
Before Tribunal, AR sought one more opportunity submitting that Assessee is now prepared to produce complete books & evidences explaining each addition. Revenue objected, arguing that sufficient opportunities had already been given. Tribunal, however, held that substantial justice requires matter to be reconsidered when Assessee expresses readiness to file complete accounts. Since issues require factual verification, Tribunal restored entire matter to AO for de-novo adjudication, directing AO to give reasonable opportunity & Assessee to fully cooperate by furnishing books & all supporting documents. Appeal allowed for statistical purposes.
FULL TEXT OF THE ORDER OF ITAT AGRA
1. The appeal in ITA No. 100/AGR/2025 for AY 2017-18, arises out of the order of the National Faceless Appeal Centre (NFAC), Delhi [hereinafter referred to as ‘ld. NFAC’, in short] dated 31.12.2024 against the order of assessment passed u/s 144 of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’) dated 07.11.2019 by the Assessing Officer, ACIT, Circle-4(2)(1), Farrukhabad (hereinafter referred to as ‘ld. AO’).
