Anjaiya Jewellery Pvt. Ltd. Vs ACIT (ITAT Ahmedabad)
In the case of Anjaiya Jewellery Pvt. Ltd. Vs ACIT (ITAT Ahmedabad), the assessee challenged the order passed by the Commissioner of Income Tax (Appeals) [CIT(A)] regarding the assessment for the year 2017-18. The primary issue involved the addition of ₹49.5 lakh under section 69A of the Income Tax Act, based on cash deposits allegedly made out of sales proceeds during the business operations. The assessee raised several grounds, primarily focusing on the denial of natural justice due to the non-granting of an adjournment request and lack of an opportunity to present additional evidence.
The CIT(A) had rejected the assessee’s request for additional time and proceeded with the appeal, stating that the appellant had not furnished any written submission to support their claims. The CIT(A) further noted that the appellant did not present a cogent explanation or reliable evidence to rebut the addition made by the Assessing Officer (AO). This led to the presumption that the appellant had no further submissions. As a result, the CIT(A) decided the appeal solely based on the facts provided in the assessment order and the grounds of appeal.
The assessee contended that the order was passed without consideration of additional evidence and submissions prepared by the appellant, for which a request for adjournment had been made but was not granted. The appellant argued that this denial of an opportunity to present the evidence violated the principles of natural justice. After reviewing the case, the ITAT found merit in the appellant’s grievance and allowed ground 2, directing the CIT(A) to provide the assessee with an opportunity to be heard and to consider the additional details and evidence submitted by the appellant.
