Case Law Details
Brief of the case:
AO had made additions to the income of the assessee on the various grounds . Aggrieved by the order of the AO ,assessee filed an appeal with CIT(A) who asked the AO to give his remand report considering the detailed submission submitted by the assessee before CIT(A). The AO had considered the detailed submissions of assessee and submitted the remanded report to CIT (A) without any adverse comments against the submissions of the assessee.In other words AO had accepted the submissions of the assessee and agreed to it without any questions. ITAT agreed to the decision of CIT(A) who also gave decision considering the clean remand report of AO and dismissed the appeal of revenue.
Facts of the case:
Revenue filed an appeal with ITAT as against the order of CIT(A) as regards the deletions of the following grounds:
a) Seizing of cash of Rs 175000/- without any explanation of the same;
b)Difference in the account in the books by Rs 104250/-;
c)Rs 14,24,038 on account of undisclosed income as by sales of spares outside the books of account;
d)Rs 4,22,717/- on account of sale of packing material outside the books of account;
e) Rs 1,70,81,755/- on account of unexplained investment in finished goods;
f)Rs 50,84,400/- on account of sale outside the books of account;
g) Rs 37,05,240/- on account of unexplained investment in finished goods;
h)Rs 48,53,675/- on account of unexplained investment in WIP. Assessee had submitted the detailed explanation of the above grounds on which additions were made by AO , who in return was also satisfied and gave remand report without any adverse comments .
Contention of the Revenue:
Revenue contented before CIT(A) that assessee was unable to give explanation on the grounds mentioned in point no 4 on which additions were made. CIT(A) remanded back the order of AO and asked him to give CIT(A) report considering the submissions of assessee who in turn accepted the submissions of the assessee and gave clean report without any adverse comments.
Contention of the assessee:
Assessee gave the detailed submissions before the CIT(A) challenging the grounds of additions which were accepted by CIT(A) who in turn asked the AO to remand back the case .
Held by the respective court:
ITAT held that CIT(A) had made detailed observations on the remand report of the AO who also in his report had not questioned any of the submissions made by assessee and in fact also had not made any adverse comments on the same.Therefore in the absence of any objection raised by the AO ,CIT(A) had rightly deleted the additions .
