Mahendra Manilal Shah Vs ITO (ITAT Ahmedabad)
Addition based only on third-party statement sent back: ITAT restores appeal to CIT(A) for fresh decision
Ahmedabad ITAT set aside the order of the CIT(A), NFAC, and restored the matter to the file of the CIT(A) for de novo adjudication.
The dispute related to an addition of ₹63.75 lakh, which was confirmed by the CIT(A) on the basis of a third-party statement, without any independent material brought on record to establish that the Assessee had made any unexplained cash payment. The Assessee contended that the addition was made without discharging the Revenue’s onus and without proper consideration of the submissions made on merits.
The Tribunal noted that despite several opportunities, the Assessee had not furnished complete details before the CIT(A). However, before the ITAT, the Assessee sought one more opportunity and undertook to place all relevant documents on record.
Considering the interest of justice, the ITAT held that the matter deserved to be examined on merits. Accordingly, it set aside the order of the CIT(A) and restored the appeal to the CIT(A) for fresh adjudication, with a direction to the Assessee to file all relevant bank statements and supporting documents and to cooperate fully without seeking unnecessary adjournments.
FULL TEXT OF THE ORDER OF ITAT AHMEDABAD
