CIT (A) should give opportunity to the A.O. to rebut the claim of the assessee in pursuance of fresh evidence produced before him

Income-tax Officer Vs.  North East Enterprises (P) Ltd. (ITAT Kolkata)-  As observed by the ld. A.O., the receipts of Rs. 50 lakhs and Rs.41,50,000/- ICD for the assessment years 2001-02 and 2002-03 respectively were not satisfactorily explained before him, which led him to make addition of the said amounts as assessee’s undisclosed investment. In our considered opinion, while deciding the issue the ld. C.I.T.(A) ought to have called for the remand report as the receipts of ICD amounts were not satisfactorily explained before the ld. A.O., which were shown as payments.

Hence, it is expected on the part of the ld. C.I.T.(A) to call for the remand report from the ld. A.O., which was not done. In view of the above, we are of the view that there is  an error of opportunity. We, therefore, set aside the order of the ld. C.I.T.(A) and in the interest of justice, instead of remitting the issue back to the file of the ld. C.I.T.(A), we deem it fit that it should go back to the file of the ld. A.O. for decision afresh in accordance with law. Hence this issue of alleged undisclosed investment of ICD amounts for the two assessment years under appeal is remitted back to the file of the ld. A.O.for proper adjudication. Needless to mention that assessee should be given reasonable opportunity of being heard.

INCOME TAX APPELLATE TRIBUNAL, KOLKATA

ITA Nos. 1927 & 1928 (Kol) of 2009 -(Assessment Years 2001-02 & 2002-03)

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