Dipika Jagdish Wagh Vs ITO (ITAT Pune)
CIT(A) Cannot Simply Echo the AO – Additions u/s 69A, Estimated Expenses & LTCG Restored Where Assessee’s Evidence Was Not Properly Considered
Summary: The Pune ITAT dealt with a case where substantial additions relating to unexplained money u/s 69A, estimated disallowance of expenses & LTCG on sale of immovable property were sustained by the CIT(A) without recording proper findings on the documents & explanations furnished by the assessee during appellate proceedings. Holding that the CIT(A) had substantially proceeded on the findings of the AO without properly dealing with the assessee’s evidence, the Tribunal set aside the appellate order & restored the entire dispute to the CIT(A) for fresh adjudication.
Facts — Information on Cash, Jewellery & Property Transactions Triggered Reassessment
The assessee had originally filed her return for AY 2013-14 declaring total income of ₹49,88,930. Subsequently, the AO received information regarding certain financial transactions involving undisclosed cash, jewellery & purchase/sale of immovable property, which according to the Department had not been disclosed in the return.
On the basis of such information, the AO formed a belief that income had escaped assessment & issued notice u/s 148 on 31.03.2021. In response, the assessee filed her return on 30.04.2021.
