Ajay Jethanand Notwani Vs ITO (ITAT Ahmedabad)
In the matter abovementioned ITAT remanded the matter to CIT (A) after observing that no proper opportunity was given to assessee and assessee was able to substantiate the addtions made by AO if opportunity may be granted.
Assessee had opted for presumptive basis of taxation under Section 44AD. The AO initiated proceedings on the assessee on the ground that assesse has deposited cash of Rs. 1,65,47,220/- in his bank account but the assessee had not filed his return of income and nor offered the said amount for taxation. The AO issued several notices of hearing, which remained uncomplied with and therefore, the aforesaid cash deposits of Rs. 1.65 crores were added to the income of the assessee under Section 68.
CIT (A) dismissed the appeal.
Before ITAT it was argued by the assessee that CIT (A) disposed appeal without going into the merits of the case. CIT(A) issued two notices against which the assessee sought adjournment. Without giving any further opportunity, CIT(A) dismissed the appeal without independent application of mind. Assessee is in a position to demonstrate that the present additions are not liable to be sustained, if given an opportunity. Such submission of assessee was not objected to by the revenue.
